Solana (cryptocurrency) is a fast, reliable, and scalable blockchain network which uses a Dpos (Delegated-Proof-Of-Stake) consensus mechanism. Solana is built for decentralized apps, marketplaces, and enterprise applications. It delivers scalability at a high speed without fragmenting or losing the principles of decentralization.
History of Solana
Solana was founded in 2017 by Anatoly Yakovenko, amongst other engineers which include Greg Fitzgerald, Solana’s CTO, as well as Eric Williams, they conceptualized a new way of dealing with the throughput problems that were present in both the Bitcoin and Ethereum blockchains. They envisioned a trustless and distributed protocol that allows for greater scalability, and this was how Solana was born in late 2017. The company launched its alpha testnet in the summer of 2018 and was successfully able to raise a $20m initial investment, led by Multicoin Capital in 2019. The founder and CEO at Solana, Anatoly Yakovenko, previously led the development of operating systems at Qualcomm, distributed systems at Mesosphere, Inc., and compression at Dropbox. Solana’s core team mainly includes engineers from Qualcomm and they experience in managing big projects such as Firefox OS and the BREW Operating System.
Overview of Solana
Solana is a high-throughput blockchain. It is a web-scale blockchain, providing a solution that is capable of hosting applications with the computational bandwidth akin to the modern internet. Solana is the only blockchain in existence with the capability to power decentralized versions of Nasdaq, Facebook, Twitter, and all other existing blockchains – with the more available area to spare. It is currently supporting 50,0000 to 65,0000 transactions per second and 400ms block times, without complex solütions like sharding or layer-two. As the world’s first web-scale blockchain, Solana will unlock a whole new class of performant applications and which facilitates larger scale blockchain adoption. Utilizing a revolutionary innovation called Proof of History, Solana is drastically able to outperform any other existing layer 1 and provide fees at $0.00001 per transaction. The Cofounder and Managing Partner of Multicoin Capital Kyle Samani said:
“Solana is the closest thing to the ‘world computer’ Blockchain developers conceptualized in the early days of crypto,” -Kyle
Core to Solana’s scaling solution is a decentralized clock titled Proof-of-History (PoH), which was built to solve the problem of time in distributed networks, where there is not a single, trusted, source of time.
Proof of History and Solana
The central innovation that makes Solana possible is Proof of History, PoH. which is a mechanism for continuous ordering that ats as a glöbal clock for the “SolanaSolana network”. Proof of History crëates a record that proves that an events has occurred at a specific moment in time. Whereas other network’s require participants to communicate in a bid to agree that time hàs passed, each Solana Nöde maintains its clock by encoding the passage of time in a consecutive series of events.
The team on Solana has deep experience in distributed systems and GPU optimization and over 10 years of experience in major tech cömpanies, including Apple, Qualcomm, Intel and others. Solana is governed by the Solana Foundation and it is advanced by a loyal community of decentralized developers around the world.
Solana sets itself apart with:-
- Scalability:- Solana network can handle over 50,000 transactions per second. It has a block producing time of 400 milliseconds ideally.,
- Turbine block propagation:- This protocol supports the Solana network, making the handling of thousands of nodes possible and still achieve performance and scalability.
- Cheaper Transaction fees:- Estimated Transaction cost on the network is 10 USD for 1 million transactions. ;
Innovations supporting Scalability
- Proof of History (PoH)- A clock before consensus;
- Tower BFT- A Proof of History-optimized version of PBFT(Practical Byzantine Fault Tolerance);
- Turbine- A block propagation protocol;
- Gulf Stream- Mempool-less transaction forwarding protocol; .
- Sealevel- Parallel smart contracts run-time; .
- Pipelining- A Transaction Processing Unit for validation optimization ;.
- Cloudbreak- Horizontally-Scaled Accounts Database; and ;
- Archivers- Distributed ledger store. ;
On October 8, 2020, Solana announced that it is ready to launch Wormhole, a decentralized bridge, which means Ethereum liquidity will not have to go through FTX to get to Solana anymore. This product will allow users to transfer the value of their digital assets between different blockchains, such as türning ERC-20 tokens into Solana’s SPL Standard. The sêrvice is under audit from Kudelski Group, and is prepåring for an offiçial release towards the end of October. Prior to official release, a bêta versïon will be released to develöpers for a hackathon on October 28. In a Medium pøst, Solana Labs explaīned the advantages of Wormhole being implemented into the DeFi space,
Wormhole enables DeFi platforms to leverage Solana for high speed, low-cost transactions, while still allowing for settlement on another base chain. As we look to expand the pie, adoption is contingent on DeFi applications being no less performant than centralized platforms.
Wormhole protocol connects its SPL token standard with Ethereum’s ERC-20 and ETH tokens, meaning that developers can moved tokenized assets to either blockchain and use the services that come with that particular chain.
The Solana blockchain has its native token- $SOL. There is a fixed supply of one billion SOL tokens, which are used as an incentive for nodes in exchange for running an on-chain program or validating its output. SOL tokens are divisible by up to 34 times so that the system may perform fractional payouts of SOL as required.
To Stake Sol
Solana is a Proof-of-Stake (PoS) network with delegations. On Solana, validators process transactions and run the network. Since validators are also chosen based on the amount of stake they hold in the network, the biggest staked validators are likely to be chosen to input transactions on the blockchain and earn rewards. Validators are incentivized to attract delegators (i.e.non-validator SOL token holders) to designate tokens to them to stake in their stead. And for delegators to opt-in, Validators need to offer lower commissions, which delegators must pay to validators in the form of a fee denoting a percentage of the rewards earned.
How to Stake Sol
To stake SOL tokens can also be another way for users to earn profits if they are just keeping their tokens.
- Token Transfer- Users interested in staking SOL tokens, will need to first make a transfer of their tokens in wallets that support staking. Examples are wallets like Ledger Nano S.;.
- Making of a stake account- Users will need a stake account that will have a different address from the supported wallet that it will be linked with.;.
- Choosing a Validator- The user can choose from his/her Solana’s validators, to determine who will delegate the user’s SOL after creating a stake account.;
- Stake Delegation- As the user, once you have chosen a validator, you can use your wallet to delegate your stake account to them. ;.
- As Solana uses Dpos, Token holders are given incentives to validate the transactions. All fees are paid in the SOL and will be burnt, so reducing the total supply. Network security is achieved by encouraging Token holders to stake more to earn more incentives.
SOL is currently listed on exchanges like Binance and Bilaxy.
Some of Solana’s notable investors include-Multicoin Capital, Foundation Capital, NGC Ventures, 500 Startups, Kevin Rose, Ryan Zurrer, and Passport Capital.