Solana was first proposed in a white paper by founder Anatoly Yakovenko. Published in November 2017, this paper described the unique technology as “proof of history”. The first Solana block was created in March 2020. By 2021, it had acquired a reputation as ‘a potential long-term rival for Ethereum’ due to its superior transaction speeds and lower associated costs. Read on to discover more about this path-breaking piece of blockchain technology.
With a decentralized blockchain, Solana is built in a manner that ensures scalability and user-friendliness. It is touted to be the fastest blockchain in the world that is cultivating the fastest growing ecosystem in crypto. With a plethora of projects spanning DeFi, NFTs, Web3 and more, Solana is an uber-fast and low-cost, censorship restraint platform. The entire network is spread across independent nodes, which makes your transactions super secure.
With Solana, a crypto-computing platform, fast transaction speeds can be achieved without sacrificing decentralization.
Much like Ethereum, Solana is a cryptocurrency that also serves as an adaptable platform for decentralized applications (dapps). Everything from Serum’s decentralized exchange and Degenerate Apes can feature on Solana. Through a variety of novel technologies, the main innovation of this crypto platform lies in its speed improvement. While Ethereum can only perform up to 15 transitions or fewer per second, Solana can carry out over 50,000.
Since Solana is so fast, traffic and fees remain low. Creators remain hopeful that the platform’s fast processing times and inexpensive costs would allow it to compete with centralized payment processors like Visa.
Thanks to Solana, the transaction fees on NFTs become almost negligible. With the increasing popularity of Non Fungible tokens, congestion and excessive transaction costs have caused problems in the Ethereum ecosystem.
The Proof-of-history (PoH) time mechanism and a proof-of-stake (PoS) protocol structure adopted by Solana is giving stiff competition to the monopoly of Ethereum. It performs significantly better on two crucial criteria; speed and transfer costs. With fewer congestion issues, Solona NFTs are more accessible and user-friendly than those on Ethereum.
Marketplaces are the best location to buy Solana NFTs. This is where the minting, purchasing, selling, and trading of NFTs takes place. The setup is very similar to conventional cryptocurrencies, which are controlled through exchanges and digital wallets. SolSea, DigitalEyes and Solanart are renowned marketplaces if you are looking to buy Solana NFTs.
A cryptocurrency wallet is a tool that can be used to send, receive, and transfer digital currency. These wallets can be a piece of paper, a file on your computer, or a specific item called a hardware wallet.
A secure private key and its cryptographically derived public key are combined to form a keypair. The wallet’s address is the public key. The receiving address of a wallet is necessary when another party wants to transfer any amount to it. Any digitally signed transactions to send cryptocurrencies to another address or to make any changes to the wallet must be made using the private key. This key must never be shared with anybody.
Solana supports a variety of wallets to enhance security and efficiency. You must build a wallet if you want to receive SOL tokens on the Solana network. The Phantom wallet continues to be the most sought-after Solana wallet.
The native coin of the Solana blockchain is called SOL. This cryptocurrency has two primary applications:
- Transaction costs: While it is nothing compared to other platforms, Solana still charges a small fee to send transactions or run smart contracts.
- Staking: Solana’s blockchain is protected by a consensus mechanism. People who wish to “stake” some of their SOL, or lock it up, to safeguard the network and make money in the process, can help secure the cryptocurrency by acting as “validators.”
What kinds of applications run on Solana?
Solana is a computing platform that can communicate with smart contracts, just like Ethereum. Numerous applications, including NFT marketplaces, DeFi, games, and decentralized lotteries, are powered by smart contracts. These work seamlessly on the Solana blockchain. In addition to this, the most awaited metaverse project of the year, FreeCity, also uses Solana to bring a transformatory Socialfi experience to its users.
Freecity The web 3.0 project FreeCity aims to transform the metaverse. Players can design huge towns in this Socialfi metaverse by using their digital 3D avatars. The platform has Gamefi components as well because it enables users to interact for rewards. At the nexus of web 2.0, web 3.0, and entertainment, FreeCity is rewriting history.