- Category:Smart Contract Platform
- Coin Launched: March, 2020
- Resources: White Paper
- Official Website: Solana
- Reddit: Solana
Solana is a general purpose block chain similar to Ethereum. It has a different technical underlying such that developers write applications using Rust instead of Solidity or Vyper. End user applications as of now include decentralized finance (DeFi), non-fungible tokens (NFT), marketplaces, games, and more.
SOLANA History / Information / Buying / Staking
Solana was created in 2017 by Anatoly Yakovenko alongside current Solana board member and Chief Operations Officer Raj Gokal. Yakovenko, now Solana Lab’s CEO, came from a background in system design and wanted to apply his knowledge toward a new blockchain paradigm that enabled faster processing speeds.
HOW SOLANA WORKS
Solana is a decentralized protocol for building dApps with a reported throughput of 65,000 transactions per second (TPS) thanks to its distributed computing system. Unlike most protocols that run with the Proof of Stake (PoS) or Proof of Work (PoW) mechanism, Solana uses the Proof of History (PoH) – a new cryptographic mechanism that amplifies scalability while maintaining network security. Solana is among the few layer-one solutions capable of supporting thousands of transactions per second without having to implement second layers or off-chains.
BENEFITS OF USING SOLANA
Some of the benefits of using Solana are:
Solana can process a blistering 50,000 transactions per second with exceptionally low fees (less than $.01).
Solana has achieved high levels of scalability by leveraging the Proof of History and several other breakthrough innovations.
Every transaction has a fee (typically called "gas" in crypto lingo) paid to the computers that process them. This fee varies from blockchain to blockchain. Again, it's not close. Solana is vastly cheaper than Ethereum at an average cost per transaction of $0.00025.
Solana uses Proof of Stake (PoS) and Proof of History (PoH) algorithms, which are 99.9% more energy-efficient than PoW. Solana is simply better for the environment which makes it a much more appealing alternative to its users and environmental groups.
CAN YOU STAKE SOLANA
Solana can be staked on some exchanges as well as with personal wallets. Staking allows holders to earn rewards for helping to secure the network. They delegate their tokens to validators who process transactions and run the network, which follows a shared-risk, shared-reward financial model. The more stake that is delegated to a validator, the more often that validator will be chosen to write new transactions to the ledger and the more rewards it earns.
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