Solana is a high-performance proof-of-stake blockchain first conceived in 2017 by Anatoly Yakovenko. Solana uses an unique method of ordering transactions called Proof of History that allows increased scalability. The native cryptocurrency of Solana is SOL.
What is Solana?
Blockchain technology isn’t new, but Solana’s Proof of History technology is. The Scalability of blockchains is important for the future of cryptocurrencies if it were to ever become the day-to-day currency of the future. Proof of History, a trustless system for determining the time of a transaction, is a significant improvement over Bitcoin and Ethereum, which traditionally bundled transactions together into blocks with one timestamp.
Solana is lightning fast, cheap, and secure. Currently, Solana is about 10,000 times faster than Bitcoin, 4000 times faster than Ethereum, and even 2.5 times faster than Visa. Solana’s transaction fees stand at less than a thousandth of a cent, meanwhile, Ethereum has maintained an average transaction fee above $5 since January of 2021. And unlike Visa—a centralized payment system—Solana is able to provide these competitive stats while staying decentralized.
Furthermore, the open-source nature of the Solana protocol removes barriers and promotes the free flow of ideas within the community. This facilitates the growth of decentralized projects and decentralized applications. Decentralized applications (Dapps) are important to the future of crypto as they often bring additional financial use-cases, like decentralized finance (DeFi) and decentralized exchanges (DEXes) to the blockchain ecosystem. DeFi and DEXes enable users to partake in financial services that were previously facilitated by large financial institutions, and instead, they can now take advantage of financial services that are governed by verifiable code and no middlemen.
What's our take on Solana?
At Steaking.io, we love projects with real value, and Solana is definitely among them. In addition to the advancements of technology led by the Solana team, it has a flourishing ecosystem of developers. With Solana’s innovations to blockchain technology, these builders are creating a new generation of decentralized applications that will be cheaper, faster, and most importantly, more usable by everyone around the globe.
In conclusion, Solana’s innovations are able to solve the many issues facing blockchain technology. We are confident that Solana will be a key pillar in the future of the DeFi space and be adopted by the mainstream, overshadowing traditional financial institutions.