Solana (SOL) is a premium digital currency or cryptocurrency that lives on the Solana Blockchain. In April 2019, Solana was launched and began trading at less than $1 per token on british bitcoin profit. Since then, the price has grown exponentially, and as of February 2022, the price sits at around $95.
According to experts on the topic, it’s on the top 10 list for the largest cryptocurrencies by total market capitalization.
This article discusses what Solana is and highlights some of its features plus its inner workings.
What is Solana?
With over 10,000 cryptocurrencies on the market today, we think Solana is an excellent choice for investors who want to be part of a reliable blockchain. An individual unit of the token is called SOL, and the platform it is traded on is known as the Solana Network.
Solana operates a decentralized computer network created by Anatoly Yaovenko and uses blockchain to verify its transactions. The database consistently tracks and manages currency, recording it on a public ledger (think of it as a long-running receipt).
Without blockchain, the verification of the data’s integrity and recording of transactions in this manner could never occur. User’s on this decentralized network can perform transactions without requiring an intermediary, making the entire process more robust.
65,000 transactions per second at the cost of less than a penny each is one of the things that Solana boasts. It calls itself the fastest blockchain globally, and we think that the above statement proves that.
Many people think that cryptocurrency can only be used to purchase things online, but that is so far from the truth. These digital assets can be used for a host of different applications, including powering NFTs, smart contracts, decentralized finance apps, and much more.
What Does Solana Do?
There is an extensive range of applications powered by Solana that offer various features. The solutions listed below include but are not limited to:
- Currency: With a wallet like Phantom, you can use Solana to receive and send SOL or transfer it in exchange for services and goods.
- Smart Contracts: When the terms of these digital contracts are met, the code automatically executes, fulfilling the desired outcome.
- Non-fungible tokens (NFTs): Solana can power NFTs often associated with digital art. The network allows artist and others to sell their creations to consumers.
- Decentralized Finance: You can avoid centralized or government control by creating and using permission-less payments on the Solana network.
Digital Apps: Solana supports the development of multiple apps, including social media, investing, gaming, and more.
- Proof of History Consensus Mechanism: Solana timestamps transactions instead of using the Proof of Stake approach. That eliminates the ability to reorder transactions to the validator’s benefit. Solana is a censorship-resistant network due to its blockchain’s Proof of History model.
You need to look at Solana as a token that can power many applications and not only a means to transfer funds.
Where Do Solana Coins Come From?
302 million is the amount of SOL in circulation as of November 2021. Coins are awarded to those supporting the cryptocurrency, making Solana have a limited annual issuance similar to other tokens.
Solana started its initial supply with an 8% increase annually, but that number declines 1.5% each year until it reaches 1.5%, which will be its fixed rate for ongoing issuance.
With the decreasing supply, you may be thinking if it’s still worthwhile to invest in Solana or any other cryptocurrency. You need to look at the bigger picture as this technology is going nowhere, and investing in it now may be a great thing, especially if you are holding long-term.
Using a trading application is a great way to invest in cryptocurrency. The software has an intuitive and user-friendly dashboard that provides you with updated information regarding the price of these digital assets.
What are you waiting for? Join the crypto revolution today!