A month ago, Solana Coin (SOL) was $25, but now it’s up to $125 today (a 500% increase in a month). While the crypto market has just recovered from a massive correction in the past month. Solana ($SOL) rose to the highest level and became the 8th largest crypto coin in the world. So what is Solana, and what does it do?
What is Solana?
As one of the programmable blockchains in the crypto space, Solana is currently marketed as the fastest blockchain in the world and one of the fastest-growing ecosystems. Apart from that, it is seen as a potential replacement for Ethereum (ETH). Non-programmable blockchains let people transfer money without having to deal with a third party, but programmable blockchains take it to the next level. A smart contract is a tiny piece of code that can be stored on a blockchain. It can be programmed to do certain things when certain conditions are met. Ethereum, for example, was the first programmable blockchain. However, several new programmable blockchains are trying to take some of Ethereum’s market share. They’re built fast, cheaper, and more sustainable. Solana is the fastest among all of them.
What makes Solana of the fastest Blockchain
One of the biggest strengths of the system is the Proof of History. This is one of SOL’s innovations to make the system safe and fast. Nodes can agree on a time and sequence of events in the Solana Blockchain without talking to each other, which makes the process faster. Proof of History isn’t a consensus mechanism, but it lets nodes agree on the time and sequence of events without talking. Solana’s also got a good expansion point. It can support more applications and it doesn’t require methods to extend Blockchain, so it’s more flexible. The Solana network is very stable and secures thanks to a large number of node validators. Another plus is that the fee is not too expensive.
How fast is Solana?
The Solana system can handle at least 50,000 transactions per second (TPS). There’s a possibility that number could go up to 700,000 TPS if the network grows. As a point of reference, Ethereum currently processes anywhere between 15 and 45 TPS.
With the Decentralized Finance, many projects are being built on the Solana Blockchain, and other features that are making it a big competitor to Ethereum will make $SOL go up in the long run. But as more blockchains use smart contracts and move into NFTs, Solana is going to face more competition. In other words, the blockchain war has not yet been decided, and it is still underway.