Founded in 2017, Solana is a high throughput, low latency, mixed Proof of History (POH) / Proof of Stake (POS) based smart contract blockchain platform. It claims to provide up to 50,000 transactions per second (TPS) and 400 ms block time latency. This offers Solana a significant advantage over the legacy networks, which are noticeably slow.
It's worth noting that Solana's unique design allows for this faster breakneck speed and low processing times, without sacrificing decentralization and security. Solana offers a highly scalable solution for Web 3.0 and Decentralized Finance (DeFi) protocols.
Compared to Ethereum, it offers a so-called big block design. This means that more transactions can be included in a single block, in a short period of time. Ethereum processes 15 transactions per second (TPS) against 50,000 transactions per second (TPS).
It also processes a block in 15 seconds against Solana's 400 milliseconds advantage. Solana also offers lower fees, compared to the Ethereum blockchain. However, the latter is most widely adopted and planning to transition to Proof of Stake, in a couple of years.
The Solana Team
Solana was founded by Anatoly Yakovenko in 2017, after he devised a new time keeping technique to solve the scalability issues faced by Bitcoin and Ethereum. Anatoly's new Proof of History (POH) automates the transaction ordering process and solves a major bottleneck for the existing blockchain networks.
Yakovenko was soon joined by Greg Fitzgerald and Stephen Akridge, who further improved and optimized the design of this new blockchain. These three would soon form the Solana Labs, which derives majority of it's team from former Qualcomm and Apple engineers.
The revolutionary blockchain system raised $20 million between April 2018 and July 2018. It launched its mainnet in March 2020, after launching a further $1.76 million on CoinList. Solana is backed by top-tier venture capitalists such as Alameda Research, Polychain, Multicoin Capital, Memetic Capital, CoinShares, ParaFi Capital, Sino Global Capital amongst others.
The Solana Ecosystem
Taking advantage of Solana's high performance and scalability, major crypto teams are building on it. Currently, there are more than 50 projects building on this smart contracts platform. These include Serum DEX, 1Sol DEX, SolPAD launchpad for starter projects, Anchor savings protocol, Solaris lending/borrowing protocol, Blockfolio asset tracking and management platform, Akash, Parsiq, the Graph, Chainlink, Terra, USDC and more.
Solana the Token
Solana native token is SOL, which is traded across all major exchanges and has excellent liquidity. The token is used for securing the blockchain via it’s Delegated Proof of Stake network. Over the long term, it’s thought that if Solana the blockchain thrives, then SOL the token will accrue value.
Tax-Free Solana (SOL)
If you want to learn how you can potentially invest and trade Solana tax-free, head to www.iTrustCapital.com
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.