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December 9, 2024
One of the most promising cryptocurrency projects today is Solana. At its peak, the SOL coin was a bit short of 260$ per SOL. As of now, it is worth about 33$, following the general decline in Crypto. What made SOL reach such incredible heights last year, and what are the chances that it will come on top after all? Here is what you need to know about the Solana project.
Solana is a powerful Layer 1 blockchain that supports smart contracts (supports NFTs and is available on OpenSea). Solana is built as an open-source project, developed on C, C++, and Rust.
The Solana project was initiated by Anatoly Yakovenko, a Ukrainian-American engineer who learned to write code as a teen. He worked at Qualcomm for 13 years but also had a side project of building deep-learning hardware. Anatoly mined bitcoin to fund his side project and, by that, got acquainted with Crypto. While working on his project, Anatoly had an Idea to add something called Proof of History to the blockchain technology: Proof of History is a sequence of computation activities that can provide a way to verify the passage of time between two events on the blockchain.
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This mechanism was designed into The Solana blockchain (named SPL) and gave Solana its advantage. The Solana blockchain uses a unique hybrid mechanism that combines POH and a proof-of-stake consensus mechanism, which gives it much more scalability than the Ethereum blockchain. While the Solana blockchain can support up to 710,000 transactions per second (TPS), Ethereum can support no more than 15 TPS (before the merge).
Another of Solana’s significant advantages is its low-cost transaction fees, which is the main reason for Solana’s adoption by the NFT community. Solana is supported on OpenSea, and it is the infrastructure chain of Magic Eden, a new competitor to OpenSea that was recently valued at a fantastic worth of 1.6 billion dollars.
Some people view Solana as Ethereum’s main competitor and maybe even Ethereum-killer. However, Anatoly himself stated that Ethereum couldn’t be killed since open source projects generally can’t be killed. Instead, it seems that Solana is aiming in a different direction: “I’m a skeptic; I’m probably the biggest skeptic of crypto,” said Anatoly. As Anatoly sees it, Solana’s real competitor is Wall Street and the rest of the global markets.
Seems ambitious? Don’t underestimate Solana: Solana labs raised over 300 million dollars from prominent investors like Andreessen Horowitz, Alameda Research, and FTX. with a market cap of about 12 billion dollars, even today, Solana is a force to be reckoned with.
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