Solana cryptocurrency: features and prospects of SOL
The Solana crypto project is new on the market and has already gained approval among a large number of miners.
Since the release of Bitcoin in 2009, more than 9000 types of cryptocurrency have appeared on the market, and this list is constantly expanding.
Each new coin is endowed with individual features to become a leader in the ranking of competitors.
SOL cryptocurrency has become a special blockchain innovation, successfully combining time reference and network-wide decentralized clock. An overview of the cryptocurrency and its main features are presented below.
What is Solana
Solana is a blockchain platform with high performance, smart contracts, and decentralized applications.
The platform is capable of processing 50-70 thousand transactions per second, with no sharding or multilevel layers.
Such performance was achieved using timestamping, PoH, Turbine, and Gulfstream technologies.
Solana was officially introduced in 2017, and its founder was Anatoly Yakovenko.
The project raised about $30 million in sales, but nevertheless, the beta version of the SOL network did not start functioning until 2020, and the main one – in 2021.
Solana currently has about 400 projects known in the crypto world, including Chainlink, Serum, and Audius. Today, the virtual machine competes with platforms such as:
- Ethereum;
- Cardano;
- VeChain;
- FreeTON et al.
But unlike its competitors, the Solana crypto project consists of a single layer. It does not delegate operations to other chains.
The platform doesn’t need second-layer scaling, as in the future the owners plan to make transfers between accounts at up to 700 thousand transactions per second.
Here is a simple comparison of new blockchain creation speed for the most popular crypto platforms:
- Ethereum – about 15 seconds;
- Bitcoin – about 10 minutes.
For Solana, this figure is no more than 400 milliseconds. Thus, the platform has created a decentralized clock, where one “tick” is 400 milliseconds.
The platform also has roles (validators, leaders, archivers, and others), but participants can exchange them.
In addition, the platform does not set a minimum stake to become a blockchain node. But the amount of reward will be set depending on the number of SOL tokens contributed to the bid.
Solana token ICO
Solana had a total of 5 funding rounds, with the public ICO being the most recent.
Solana raised more than $25 million in funding during those five rounds and even provided a buyback price guarantee of just under 20 cents to those who registered and delivered their tokens within the first 3 months of the March ICO.
The auction took place on the CoinList service, where 8 million SOLs were sold. They were worth more than $1.7 million, representing 1.6% of the total supply.
The cryptocurrency SOL has a total supply of 500 million. Of this total supply, 36.2 percent (approximately SOL 160 million) was sold to private investors in the four sales mentioned above.
12.8 percent (approximately 65 million SOL) was allocated to the Solana team.
Proof-of-History (PoH) algorithm
The presence of PoH is considered one of Solan’s main advantages. Proof of History is a blockchain synchronization algorithm that allows the setting of the same time for all nodes.
This eliminates the problem of inaccurate timestamps in a distributed network. The feature involves the formation of a chain that describes events and their sequence.
Solana is the developer of the technology, so it has implemented it in its operations, thereby improving the service for platform users.
Cryptocurrency SOL: prospects
Experts claim that the project has significant prospects and may outperform many of its competitors in the future.
Even though it is now at the stage of a project with high potential, the number of partners and investors is constantly growing.
According to experts, users are attracted by the numerous modern technologies used by Solana. It is thanks to them that the increase in the value of tokens is likely to take place.
The following version of events is considered to be the most popular among experts’ forecasts:
- By the end of 2022, the price of the coin will be at least $80;
- By 2023-2024, the value of the coin could reach $400-$600.
From 2020 to 2021, the cryptocurrency SOL had a value growth of 11600%. In May 2021, the price was $58, but in June there was a drop in value to $30-40.
And even despite the absence of the possibility of mining Solana has every chance to enter the top cryptocurrency in the market.
Should I buy SOL cryptocurrency
Solana belongs to the promising and promising projects, which can be definitely recommended for investment. The value and attractiveness of the cryptocurrency is appreciated by many users.
But it is important to understand when it is better to perform the purchase of tokens. The following factors may influence the value:
- the emergence of new, reputable investors;
- the general state of the cryptocurrency market;
- changes made by developers or regulators of the virtual asset sector;
- opinion leaders’ statements about the coin.
Constant monitoring of the situation in the investment market will allow you to choose the optimal period to buy SOL. Experts recommend waiting for a price decrease to 22-25 dollars to enter positions. After that rapid growth of price is expected.
How to buy Solana cryptocurrency
If you already have cryptocurrency, the best way to get Solana is to use exchangers. Most of them offer several ways to make an exchange. To exchange fiat funds, it is better to use exchanges. When choosing a site, pay attention to a number of factors:
- amount of commission;
- the current rate on the cryptocurrency market;
- rating of the selected service.
You can buy SOL by exchanging another currency: USDT, Bitcoin, or Tether. People buy SOL coin to support the development of smart contract platforms or to invest in crypto-assets.
If you are interested in the Solana blockchain, you can access them from several trading venues. It is easier to buy through trusted global decentralized exchanges.
SOL crypto exchanges
Solana is well-quoted on many well-known crypto exchanges. In particular, a third of sales are made on the largest platform Binance, as well as through the trading pair SOL/USDT.
Below is a list of cryptocurrency exchanges where it is possible to buy Solana cryptocurrency.
However, if you decide to buy SOL through an exchange, the best option would be Binance. The share of trading on other exchanges is quite small, in addition, many of them are not reliable enough.
Where to exchange Solana cryptocurrency
Wellcoinex service is one of the major crypto-exchangers, allowing fast transactions with cryptocurrency. In particular, the system supports payments with Solana cryptocurrency. Among the advantages of the service are:
- work in 24/7 mode;
- favorable and fair exchange rate;
- performing the exchange in a matter of minutes;
- support for several types of currencies and cryptocurrencies;
- quality service;
- high level of security and confidentiality.
With Wellcoinex exchanging SOL will not be a problem – it will not take more than a few minutes. You can also use other exchange services, but make sure that they support SOL crypto and have a high level of security.
Where can I store SOL cryptocurrency
To store SOL cryptocurrency, it is allowed to use only those wallets, which support Solana Program Library.
This can be the official wallet of the company, also the developers recommend Trust Wallet – a wallet with a simple, clear interface and a wide range of functions.
When choosing the best crypto wallet for SOL, consider a number of factors:
- Support for this cryptocurrency. Make sure the wallet supports Solana Program Library.
- Availability of an app. It is recommended to choose wallets that can be downloaded to Android or iPhone – this will increase the convenience of use and allow you to carry out transactions at any time.
- Additional features. Look for a wallet that fits your needs. For example, if you plan to earn money by staking, make sure it supports this feature.
Among the most popular wallets for SOL are: Meta Mask, Tangem, CoinPayments Wallet, ZenGo, Coinbase Wallet. You can also use a special extension for the browser MathWallet.
Conclusions
Even though Solana is still in beta, it has great promise. The platform has completed billions of transactions over its lifetime, and Proof of History and timestamps have made the blockchain one of the fastest in terms of transaction speed.
It is a sought-after blockchain for hosting decentralized exchanges and experts are confident that SOL cryptocurrency could become one of the market leaders in the near future.