In this crypto article, you are going to learn the new blockchain platform and the cryptocurrency Solana, you also learn what is Solana? how does it work? and what is used for?
Before getting all the details of it first understand who and when it is invented and comes to the world of Cryptocurrency.
In the year 2017, the founder of Solana name as Anatoly Yakovenko released a white paper on the Solana project, and after the publishing of the paper, they have started working on Solana Project.
In the year 2020 Solana has released the native token called SOL for the public and they started the ICO of SOL in the market.
They have announced a total supply of 505 million SOL Tokens in the world and till now approximately 298 million SOL already come into circulation.
What is Solana?
Solana is a blockchain technology similar to bitcoin and Ethereum, it is a public blockchain technology platform used to build decentralized applications.
It is developed to solve centralized application problems, like data breaches, Hacking, server crash, and others, and helps to build DApp’s which can use all over the world.
It supports several types of Decentralized applications like trading, gaming, social media, finance, arts, multimedia, etc.
This type of application is not managed by any central authority which is managed and used by normal people and they can use, consume and earn from these DApps.
For Example, your all Google application like Gmail, YouTube, Map, Photos, and others are all managed by Google company and they have full control of your data, activity, and transaction.
However, on a public blockchain platform, you can build the application and make it decentralized that can be useful and managed by people without any centralized authority.
That means there is no one who takes the commission of your work and whatever time you spend you will get the reward based on your time and efforts.
How does Solana Blockchain Function?
Solana is a blockchain that uses sharding to achieve scalability. In sharding, the blockchain is automatically split into many parallel chains, or shards, which can process transactions in parallel.
These shards are lightweight and each chain only stores a subset of the full state of the network. This lets us scale horizontally by simply adding more shards as demand increases.
Shards are not stored sequentially on disk but rather in a way that minimizes interactions between unrelated nodes.
This is crucial for scaling since it means that each node doesn’t need to inspect all previous transactions before processing new ones.
How does Solana platform works?
The Solana platform is worked on a public blockchain network which is a combination of small individual computers around the world.
This type computes build a public blockchain network or decentralized network where large groups of people work for the system and get paid based on work in a specific currency.
In the case of Solana Different Developers and engineers in the world are bringing their set of computers and connecting them to the Solana network where they develop applications or mine the tokens and get paid in SOL Token.
Similarly, if you use the services of the Solana platform you have to pay for it in SOL token, so like this, all the blockchain platforms their economy works.
In the case of centralized systems like Twitter or Facebook, they get down sometimes but in blockchain networks like Ethereun or Solana, it is impossible to crash because it is connected to a distributed network with more than a million computers.
That’s the reason the Solana blockchain platform is more futuristic and reliable in the world of the internet and technology.
Why Solana is different from Ethereum?
When Ethereum has developed they have created a system that is revolutionized in the software industry and it has given the power to developers to build decentralized applications (DApps) for different industries.
Solana Vs Ethereum
Solana has built on the same approach and it provides the same application as Ethereum but they give more independence to developers and users to utilize the platform.
For example, the company like Airbnb, Uber, or food delivery apps, etc., for this type of application take a commission from sellers and users for using their platform and services.
So all these problems will solve by the decentralized application because there will be no centralized system that can handle or take omission from developers and users.
Consensus Algorithm
Solana has a different consensus algorithm to solve blockchain problems as compared to bitcoin and Ethereum.
Bitcoin is working on the proof of work, Ethereum works on proof of stake whereas Solana is working on a different algorithm called proof of history.
Speed of Transaction
While comparing the speed of transactions Ethereum can do 15 to 20 transactions per second and Solana can do 50,000 transactions per second which makes it different from Ethereum.
Low Fees
Similarly, Solana takes very low transaction fees called gas as compared to Ethereum platforms like Ethereun takes approximately $15 whereas Solana takes $0.0015 to $0.0025 per transaction.
Blockchain Trilemma
Solana also claimed that they have solved the issue of Blockchain scalability trilemma which you do not get in bitcoin and Ethereum.
Blockchain scalability trilemma is the functionality of blockchain applications where your get decentralization, security, and scalability.
Bitcoin and Ethereum are much more secure and decentralized but not that scalable whereas Solana is good at all of this.
Solana achieved all this functionality with the help of a proof of work algorithm that gives a decentralized, secure, and more scalable approach in the blockchain.
What is Proof of History?
Rather than trusting the timestamp on the exchange, you could demonstrate that the exchange happened at some point prior and then afterward an occasion.
The Proof of History is a high recurrence Verifiable Delay Function. A Verifiable Delay Function requires a particular number of successive strides to assess, yet delivers a remarkable yield that can be productively and openly confirmed.
Proof of history in Solana is an arrangement of calculation that can give an approach to cryptographically check section of time between two occasions.
It utilizes a cryptographically safe capacity composed so that yield can’t be anticipated from the info, and should be totally executed to create the yield.
Profoundly, its past yield as the current information, occasionally recording the current yield, and how frequently it been called.
Profoundly. Information can be timestamped into this grouping by adding the information (or a hash of certain information) into the condition of the capacity.
The recording of the state, file, and information as it was annexed into the arrangements gives a timestamp that can ensure that the information was made at some point before the following hash was created in the grouping.
This plan likewise upholds flat scaling as numerous generators can synchronize among one another by blending their state into every others grouping.
Top Investors in Solana
Solana has got huge investment after launch and they have offered the SOL Token to the investors while investing in Solana’s growth story.
Andreessen Horowitz and Polychain Capital are top inverters in Solana and they have taken the SOL coin instead of asking for the stake.
This shows that the huge future growth in the Solona platform and owning the SOL coin can be profitable like Ehtereumn and bitcoin.
Summary
Solana is the fastest growing blockchain platform and SOL is the cryptocurrency used for the Solana platform while doing transactions.
Solana is the more advanced version of blockchain technology as compared to bitcoin and Ethereum.
However, it is the more affordable, independent, and fastest blockchain technology as compared to other blockchain platforms.