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All About Solana Crypto: Your Solana Crypto 101 Guide

By March 3, 2022April 15th, 2022No Comments

With so many crypto projects creating their own blockchain technology in the works currently, it can be hard to keep track of them all. Especially tho those willing to invest in digital currencies as an alternative to fiat currency, it is important to understand the differences in each respective projects.

Solana intervenes where Ethereum may have failed, namely attracting new developers due to the low cost of Solana network as well as the faster transaction processing times.

What is Solana?

The Solana blockchain platform hosts decentralized, scalable applications. Solana, which was founded in 2017, is an open-source project currently managed by the Solana Foundation in Geneva, with the blockchain built by Solana Labs in San Francisco. 

Solana claims to be faster in terms of transaction processing capacity, and has significantly lower transaction fees when compared to rival blockchains such as Ethereum. Solana can process up to 50,000 transactions per second at a cost of $0.00025 per transaction. In comparison, Ethereum can only handle less than 15 TPS, and transaction fees hit a high of $70 in 2021.

Solana is a proof-of-stake (PoS) blockchain that also employs a novel technology known as Proof of History (PoH).

What Is Proof of History in the Solana Network?

What makes Solana unique is PoH. PoH is a proof for verifying the order and passage of time between events that is used to encode the trustless passage of time into a ledger.

Blockchains up to the creation of Solana did not rely on time, with each node in the network relying on its own local clock with no knowledge of any other participants’ clocks in the network.

Because there was no trusted source of time (like a standardized clock), when a message timestamp was used to accept or reject a message, there was no guarantee that every other network participant would make the same choice. The Solana blockchain network corrects this problem through PoH because every node in the network is able to rely on the ledger’s recorded passage of time on a trustless basis, which is a critical function of the Solana blockchain.

What Can Solana Blockchain Do?

Solana can power a number of applications with a variety of features:

Currency: Using a cryptocurrency wallet, you can send or receive the coin, as well as transfer it in exchange for goods and services.

NFTs (non-fungible tokens): NFTs, which are frequently associated with digital art, can be powered by Solana, allowing artists and others to sell them to consumers. This is extremely helpful as many of the most popular NFT sites have extraordinary gas fees because they are supported on the ETH network.

Smart contracts: Smart contracts are apps that automatically carry out the terms of a contract when its conditions are met. Think of this being used for escrow purposes in the future or any other type of contract where a mediator may be necessary.

Decentralized Apps: Solana supports the development of a variety of other apps, including games, investing, social media, and more, in addition to its other functions.

Decentralized finance: Solana allows you to create and use permission-less payments, which avoid centralized or government control.

Is Solana a coin or token?

SOL is a token, but first it is important to understand the differences between Tokens and Coins

Coins: Cryptocurrency coins were designed to be used as currency. Coins can be used to pay for goods and services, be saved for later use, and be divided into fractions of the whole – for example, 0.00024 Bitcoin.

To put it simply, a coin is a digital asset that is ‘native’ to its blockchain. Bitcoin, for example, runs on its own blockchain, while Ether runs on the Ethereum blockchain, and so on. They can be exchanged for one coin to another (ETH to ETH or BTC to BTC) but it does not allow from network to another, ETH to BTC for example.

This is why crypto exchanges become so important, the exchange connects buyers and sellers on the network of each coin, acting as a middleman to keep track of things. As a result, while one user exchanges Bitcoin for Ether, the transactions are recorded on the respective blockchains.

Tokens: Crypto tokens are a type of asset representation. These tokens can be kept for their monetary value, traded, and staked to earn interest.

Tokens are used in decentralized applications (dApps), while tokens gain access to the benefits of an existing blockchain, they do so without the need for their own infrastructure. It is important to note that, dApps based on tokens are said to be simpler to create than coins. This has resulted in some exciting applications, including decentralized finance (DeFi) and non-fungible tokens ( NFTs).

How much is Solana coin worth?

As of February 2022, Solana token (SOL) is currently worth $85 per token. It currently has a market cap of over 43 billion dollars and a 24 hour trading volume of 1.9 billion. When Solana first began trading the Solana price was $0.77 in 2020 this means that it has seen a %10809 increase in its price.

Will Solana be listed on Coinbase?

You can buy Solana (SOL) on Coinbase. If you have the funds head over to Coinbase and purchase your first SOL on that crypto exchange.

Tip: Sign up for Coinbase through the Swagbucks rewards site, get a $30 cash bonus.

Where can I buy a Solana token?

There are many places that you can buy SOL, if you would like to become an investor, for example Crypto Exchange FTX. You can also buy Solana on Binance, Kraken, and Coinbase. Most major cryptocurrency exchanges offer SOL token on their platforms.

Solana is a large cryptocurrency that aims to continue to grow decentralization technologies.

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