Solana has its own blockchain, which carries a high-volume trading activity centered around the Solana coin (SOL), designed to work with NFTs. It began as an ICO project to fund the development of a special network that ran via a unique set of decentralized finance (DeFi) protocols. As a result, in March 2020, the SOL initially raised more than $25 million, and by the next year, it raised another $314 million.
Solana Unique Properties
The Solana blockchain network has been used to develop an impressive number of NFTs, new projects, and DeFi trading platforms. Its pricing is growing exponentially, over 8000% in YTD, with a new market cap of $46.7 billion, making it the 7th largest cryptocurrency. What makes it so useful and appealing as a tool as well as an investment? Besides the obvious pricing growth, there are a few important characteristics unique to the SOL that potential investors and traders should know:
- Transaction Volume – Solana has a decentralized protocol that, so far, enables a transaction rate of 65,000 TPS, or transactions per second.
- Cheap and Fast – Transactions are not only numerous, but they are very quick and certainly cheaper than the rising cost of transactions on the Ethereum blockchain. Since both specialize in dAPPs, Solana has proved to be a tough competitor to Ethereum.
- Scalability and security – To provide such scalability and safety, other blockchains need to employ sidechains or additional second layers, not so with Solana.
- Proof of History – While other blockchains and cryptocurrency work exclusively with Proof of Work (POW) or Proof of Stake (POS), Solana has created Proof of History (POH) which starts out using POS and adds more timestamp data to the string. Essentially, POH involves creating a cryptographic clock that records and tracks events that have occurred on the network in real-time. This validation process has advantages that appeal to those who seek additional security, including ICO-related activity.
Recently we posted about the crypto-industry regulations found in the recently passed infrastructure law. However, the SOL has proved to be so resilient that it seems to have bounced back from the initial sell-off frenzy triggered by the new regulatory changes imposed by the law. Aponte Crypto Consulting is interested in helping anyone interested in any type of ICO or NFT related cryptocurrency. Still, the SOL poses some very interesting opportunities based on its POH technology. Want to learn more? Contact us today.