Introduction of Solana
In the crypto world, where blockchain is the most popular place to buy, store and trade various top currencies securely, there are some innovations on their way to take over the blockchain with more technical and revolutionary changes. A Blockchain is defined as a decentralized system and often public digital ledger consisting of records called blocks used to record transactions. A blockchain is a ledger of duplicated transactions spread across the entire network of computer systems on the blockchain. This blockchain is now somehow old in listening, and Solana emerged out to create a new hype.
What is Solana?
Solana is a fast, cheap, and monstrous blockchain that’s popped up lately. It can be described as crazy unique technological improvements over Ethereum, and it also gets into some tokenomics that you could utilize to make a future price prediction.
Work History and creation of Solana
At first, let’s talk about the creation of Solana. So, Anatoly Akavenko created it, and he was the first person to write Solana’s white paper. He worked with the company Qualcomm for over a decade and is known for his smart work. His blockchain is named after the Solana beach that he liked. This white paper that Anatoly wrote was quite technical, but only a few lines are understandable.
Why is Solana amazing?
We are quite curious about why Solana’s price has skyrocketed in the past few months. The first fact is the Solana’s block time that is only about 400 milliseconds. This block time is very fast compared to others as ethereum’s block time is 10 seconds, and quite slow among all is that of the bitcoin’s that is 10 minutes. Solana self-praises that they can grip up to 710,000 transactions per second, like 30 times the amount that Visa currently drives. Although they’ve never been able to go past 50,000, this doesn’t mean they can’t do 710,000. It just exhibits what Visa has never tried to do. These comparisons show that the Solana network is fast, monstrous, and surprisingly cheap. Solana is comparable to the Matic network with transaction fees around 100th of a penny.
What makes Solana so Fast and cheap?
When we talk about the cheapness of Solana, the first thing that we must explain is their consensus mechanism which is a fancy scheme of saying how everyone consents to what the blockchain should be now. They neither use proof of work nor proof of stake. Anatoly introduced a new system in his white paper, which was called proof of history. Proof of history involves proof of stake, but the other thing is the variable of time. This proof of history is a way of integrating time into blockchain data. Timestamps are things used to place specific dates and times on the blocks, allowing fast sequencing of validators. This eases their order of submission without communicating back and forth in contrast to other blockchains, which require a computer network to check the timing.
Solana fixes this using proof of history to have everyone timestamp their blocks and use cryptographic proof, so they don’t have to wait for everyone’s agreement. We can agree on the data organization in the blocks, and we don’t have to wait for other validators to check and approve our work. Proof of history allows nodes to keep throwing bunches of blocks at us. Another interesting thing is that Solana has 25 blocks being validated by 25 people at once. This is how they can surpass Visa by such an enormous factor.
Similarity to proof of stake
If we talk about its similarity to proof of stake, Solana is unique because there are no requirements to be a validator. Explaining the term “proof of stake,” we see, to compare Ethereum 2.0, you must take around 32 Ethereum, which is equivalent to 100,000 dollars. However, on Solana, you only need to hold a very minimal amount of the coin and pay a fee to vote each day. However, the voting fee is the only thing to be unlike, but it’s only one Solana per day that makes around 70,000 dollars a year which seems hilarious compared to the ethereum.
Innovation of Solana
It’s quite interesting to discuss something that no other big blockchain has tried yet. This is called the sea level. It is a term used to elaborate that validators can run smart contract code in a parallel way. In Solana, the word parallel means you can do all the tasks at the same time. In layman’s language, it is equivalent to make a human’s copies to perform his chores, and for Solana, it is to process their smart contracts. Solana is not bottlenecked by software or ideas; rather, it is bottlenecked by hardware. They describe themselves by saying.
“Every time NVidia doubles the number of SIMD lanes available, our network will double in computational capacity.”
Smart Contracts Difference
Solana has widely different smart contracts than Ethereum. Ethereum uses a virtual machine-type system to run its solidity code, while Solana uses RUST. RUST is a very low-level language which means it is much more powerful, but it requires more work to create things. One drawback is that developers can’t copy and paste their adapts and projects like other blockchains that allow copying and pasting from the Ethereum network. Everything must be coded from scratch; however, they will have more power than Ethereum smart contracts.
The coin on the Solana network is the SOL coin, and it is used for transaction fees and is used all over the blockchain ecosystem. Solana is both inflationary and deflationary. It is deflationary because 100 percent of all transaction fees were burned for a long time, and now it’s around 50 percent that is burned. Talking about inflationary, they recently approved an inflation schedule where staking awards are paying out around 8%. Still, they get cut by a small amount every few days until the final staking rewards hit 1.5% in 10 years. Their total supply started was 500 million tokens. Their early distribution has already been made, and 36% has already been sold. Solana wallet held 13 million tokens, and they burned a bunch of them without any reason.
Why choose Solana?
As Solana is still in its beta stage, if you are an investor or want to develop a dapp for them, you should know that this decentralized system never goes down.