What is Solana? (SOL)
Solana is a general-purpose blockchain similar to Ethereum. It has a different technical foundation, allowing developers to write applications using Rust instead of Solidity or Vyper. Current end-user applications include decentralized finance (DeFi), non-fungible tokens (NFT), marketplaces, games, and more.
One of the most important features is its scalability: Solana can process over 700,000 transactions per second. The high throughput capacity is interesting for high-frequency traders, led by FTX and Alameda Research. The first use case for a DeFi application on Solana is Serum, developed by the team behind FTX.
Solana's native currency is SOL. Solana (SOL) is used to pay transaction fees and staking to support the network.
With the advent of multichains and the increasing adoption of DeFi and NFTs, Solana managed to capture a large market share. Its technical fundamentals have attracted developers who are now building decentralized apps on Solana.
Exploring the Features of Solana: How Does it Work?
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Ability to handle thousands of transactions per second. Solana's standout feature lies in its exceptional capacity to process thousands of transactions per second, overcoming scalability challenges that other blockchains, such as Ethereum, struggle with.
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Leveraging Proof-of-History for enhanced scalability and speed. To achieve its impressive transaction processing capabilities, Solana leverages a mechanism known as Proof-of-History (PoH). PoH enables the network to establish an ordered sequence of events or “proofs” that occur over time. This allows validators on the network to quickly verify the order and authenticity of transactions without relying solely on computation-based mechanisms like Proof-of-Work (PoW) or Proof-of-Stake (PoS).
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Support for smart contracts and decentralized applications (dApps). Another key feature of Solana is its support for smart contracts, enabling developers to build decentralized applications (dApps) on the platform. Smart contracts are self-executing agreements that automatically execute predefined actions when certain conditions are met. With Solana’s smart contract functionality, developers have the freedom to create innovative dApps across various industries such as finance, gaming, supply chain management, and more.
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Parallel transaction processing reducing congestion on the network. Solana’s architecture allows for parallel transaction processing, which significantly reduces congestion on the network. Unlike traditional blockchains where each transaction must be processed sequentially in blocks, Solana employs a unique approach called “pipelining.” This means that multiple transactions can be processed simultaneously, improving overall throughput and reducing transaction confirmation times.
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Improved user experience compared to other blockchains. With its unique features and architecture, Solana offers an improved user experience compared to other blockchains. The ability to handle a high volume of transactions per second ensures that users can transact quickly and efficiently. The reduced congestion on the network leads to faster transaction confirmations and lower fees, making Solana an attractive choice for users seeking a seamless blockchain experience.
Who founded Solana? (History of Solana)
Solana was built by Solana Labs, which was founded in San Francisco in 2017 by a team of software engineers with Anatoly Yakovenko at the helm. Yakovenko, along with several other members of the Solana team, spent many years working at the Fortune 500 company Qualcomm, which provides semiconductors, software, and wireless technology services for mobile phones. Qualcomm is based in San Diego, just slightly south of California’s Solana Beach, which inspired the name of the crypto project.
Though initially uninterested in cryptocurrency, Yakovenko had the idea to improve upon blockchain efficiency with Proof of History during a caffeine-induced fever dream. He teamed up with Qualcomm colleague Greg Fitzgerald to work on the project, who is now Solana’s principal engineer. Solana released its whitepaper and internal testnet in February 2018, while the Solana mainnet and the SOL token launched in 2020.
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