Since around the middle of May, the crypto markets have seen hard times. However, 1 cryptocurrency hasn't entirely followed the dip and has distinguished itself from the rest of the market. This is the new innovative network that promises scalability with extraordinarily small transaction fees called Solana. Its unique protocol uses a new concept called Proof of History while still incorporating Proof of Stake technology.
What is Solana?
Solana is a network that hosts decentralized applications (DApps). Solana has the advantage of low network fees and a unique solution to its network scalability. The cryptocurrency was launched in March 2020 by the Solana Foundation with headquarters in Geneva, Switzerland. It’s an open-source project that is truly decentralized through no minimum staking requirement, allowing anyone to host a validator node and vote on protocol updates proportional to the amount staked.
What really makes Solana stand out from the crowd is its proof of history architecture. Proof of History records the time of the transaction, so each transaction is identified through its timestamp and a string of 64 characters. This way, the proof of stake validators can cram more transactions into a single block using the combination of time and identity string. This is important because the high amount of transitions per second on this chain also applies to
its smart contracts, unlike other networks. In addition, its fast network with low fees makes Solana extremely useful for smart contract developers.
Solana (SOL) is Up 26% in 24 Hours
Today Solana is beating the market and keeping its head above water as it continues to gain funding and public attention. Around this time last year, the very new Solana network entered into its 1st bull market. It started trading at around $0.60 in 2020 and appreciated more than 650% through July and August to its height of around $4.78. Solana recently hit an all-time high of $58, and even though it’s down from its all-time high, it’s shown more strength than most cryptocurrencies given the current market conditions.
Why is SOL Moving?
Recently, Solana raised $314 million from prominent technology investors like Andreessen Horowitz, one of the biggest Silicon Valley venture-capital firms. This funding is intended to help develop Solana's decentralized finance (DeFi) market. This would be a massive step for Solana as DeFi is a fast-growing market and could benefit from the efficiency of the Solana network.
Where to Buy Solana
Solana’s native token SOL is a fairly popular coin that can be purchased on most cryptocurrency exchanges like Coinbase, eToro, Gemini and Binance. Coinbase is a great choice for new investors, as it has a simple user interface accessible via mobile app and desktop.
Buying & Storing
Range of Coins
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.