Giving a return of more than 15,000% in the last year, Solana has gained immense popularity and has grabbed investors’ attention. Let’s understand what Solana is and why it can be worth investing in.
Solana is a decentralized blockchain platform. It enables users to build scalable and user-friendly apps for the world. People often regard it as the ‘Ethereum Killer.’ It has a market cap of around $ 46 Billion and is increasing every day. Solana Labs & Solana Foundation developed this platform.
The crypto is backed by Sam Bankman, one of the founders of FTX(one of the most popular crypto exchange platforms). He and his team reviewed 100’s of crypto projects. And out of those projects, they picked Solana due to its immersive speed. Till now, it raised over pi million dollars, which is $314 million. One of the leading firms in the fundraising round was A16z, which is one of the most popular venture capital firms.
Ethereum has a tps of 15. Binance Smart Coin can handle up to 100 transactions per second, while Polkadot and Tron can handle around 1000 tps. But Solana is much ahead of these. It can achieve a tps of 65,000.
Transaction per second or tps is essential in the blockchain.
Ethereum gas fee is quite a big problem. To carry out a single transaction, it can cost $ 15-30. Polkadot has a gas fee of around $ 1. But Solana has the lowest gas fee. And it can be as low as $ 0.0015 for a single transaction.
Technology Behind The Token
Most cryptos use either proof of stake or proof of work technology. Solana uses a different technology called proof of history. And that is the reason this crypto can push the limits, provide effective and high-speed transactions without sacrificing security or decentralization.
Meet the Team Members
The team that built the crypto are former employees of Google, Microsoft, Intel, Apple, and other big tech giants. To understand the tech behind Solana, you need to understand the term blockchain trilemma, a term coined by ethereum co-founder Vitalik Buterin. The idea of this trilemma is that any blockchain must have three desirable qualities: decentralization, security, and scalability. And the trilemma claims that only two of these qualities can be maximized and at the expense of the third. But Solana came out to be an exception. It achieved all three by becoming a highly decentralized, secure, and scalable platform.
Solana also has its marketplace called Solonart, a platform to buy and sell popular NFTs. Many popular NFT collections got listed at Solonart, and all of them got sold in the first 8 minutes. And this shows how quickly the entire platform is growing and getting popular.
Like any other cryptocurrency, Solana is also risky investment. If we look at the current price of Solana, it has been bearish for the last few weeks. But if you invest in crypto, Solana could be worth considering for you due to the amazing network it has been building for years now. It is always worth doing your research before you invest in any crypto.