Many new crypto tokens are bringing something unique to the market, making the competition much stronger for developers. Overall, it’s challenging to come up with something new, considering that there are over 4,500 popular tokens on the market right now. In this case, we’re going to go over Solana (Sol), which has caught the eye of many investors due to its processing times and hybrid protocol.
How Was Solana (Sol) Created?
Solana is an open-source project that focuses on providing decentralized finance solutions. The Solana Foundation released this token officially in March 2020. Anatoly Yakovenko was the mind behind the creation of Solana. As Yakovenko claims, he believed it was possible to timestamp crypto transactions to increase the blockchain’s scalability without sacrificing decentralization.
The Solana token uses a proof of stake (PoS) consensus feature with lower entry barriers, as well as timestamped transactions. It supports decentralized applications and smart contracts. Additionally, Solana’s proof of stake also combines proof of history (PoH) consensus to make it even more efficient.
What Makes Solana (Sol) Special?
In essence, Solana’s high transaction speeds have been compared to Ethereum’s. Thanks to Solana’s hybrid PoS and PoH consensus mechanism, the user may experience decreased validation times for each transaction or smart contract.
Solana’s protocol was developed to comply with companies and individuals while maintaining low transaction fees and guaranteeing faster processing times and constant scalability.
In conclusion, Solana is unique because it tackles a common issue on the cryptocurrency market, which is scalability. Typically, when a crypto’s network’s congestion rises, the transaction fees increase and delays as well. With Solana, you may still experience fast transactions while maintaining a reasonably lower fee.
According to the Solana Foundation, Solana can handle 50,000 transactions per second, which is much higher than other cryptos, such as Bitcoin or Ethereum which handle seven and twelve transactions per second, respectively.
How Many Solana (Sol) Tokens Are Available Today?
The Solana Foundation stated that there are going to be approximately 489 million SOL tokens released. Currently, there are already 268 million of those tokens circulating on the crypto market. Solana’s current value stays at $43.81 per token with a trading volume (24-H) of $768,504,045.
According to the developers, the SOL token may be used to pay for transaction fees on the network, stake it to become a validator and earn rewards, and use it in governance voting.
Where Can You Purchase Solana (Sol) Tokens?
Due to its increasing popularity, you can purchase Solana’s token on one of the exchanges we’re listing below:
Today, Binance is likely the best option for investors since it offers the highest trading volume for SOL/USDT at 216,785,434.79 as of May 2021. You may invest in any exchange you consider appropriate, but you must ensure to do proper research before making any important investing decisions.
Bottom Line
Solana has been gaining popularity over the past few months thanks to its technological advances and its improvement upon other cryptocurrencies, such as Ethereum. Thanks to the developers’ hard work, Solana features a much faster crypto network that easily surpasses others.
As mentioned before, scalability is one of the primary problems that most cryptocurrencies are experiencing today and considering Solana’s solution to that problem, it’s more likely for developers and investors to turn to Solana eventually.