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What is the Solana blockchain platform?

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In the last decade, we have seen the proliferation of cryptocurrencies, digital collectibles, and play-to-earn projects.

At the foundation of all these is a distributed database that enables users to perform decentralized, trustless, and cross-border transactions seamlessly.

These databases are called blockchains, and one such unique project is the Solana Blockchain.

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So, what is Solana, and what distinguishes it from every other project?

This article discusses everything you must know about the Solana blockchain.

Ranging from the definition of Solana, its features, how it works, its unique governance token, Solana use cases, and what differentiates it from others.

Read on for more information below.

  • What is Solana?

Deployed during the ICO boom in 2017, Solana was designed by Anatoly Yakovenko and Greg Fitzgerald.

The team developed the blockchain to leverage various innovative technologies to facilitate next-generation decentralized applications (dApps).

While its open-source project is based in Geneva, the blockchain was developed by Solana Labs, which is based in San Francisco.

Solana emerged to tackle issues other popular dApp-facilitating blockchains face, like its archrival and the second-largest blockchain globally, Ethereum.

At press time, Coinmarketcap shows that Solana is the 10th largest blockchain by market cap, with a market capitalization of $8,319,780,865.

  • What are the Features of Solana?

We mentioned earlier that Solana provides diverse global technological and financial solutions for retail and wholesale customers. It towers over its competitors in many different ways, which is one of the reasons why it ranks as one of the top 10 leading blockchains globally.

  • Open-Source Code
  • SOL token
  • Proof-of-Staking
  • Proof-of-History
  • Horizontal Scaling
  • Layered Services
  • Minimal block time
  • Leader nodes on rotation
  • Turbine protocol
    • How does Solana Work?

Solana leverages the PoS and PoH consensus mechanisms to facilitate transactions on its network. At the project’s core is the Proof-of-History mechanism, which capitalizes on computations that save digital records of transactions or events for verification. It is worth noting that these events are usually displayed as cryptographic blocks that reveal the timestamps of every transaction occurring on the blockchain. These events also include a data structure.

The PoH mechanism relies on both the PoS system of the Tower Byzantine Fault Tolerance (BFT) and the famous Bitcoin SHA-256 hashing system. Using the BFT framework can facilitate transactions. The Tower BFT consensus secures the network, ensures it is operational, and is crucial for another validation tool.

Once the network receives transactions, validators process them using the SHA-256 hashing mechanism to determine their hash value. After deciding their hash value, the system records the value as a piece of data and links it to the previous hash index’s link. Then, the PoH consensus algorithm creates a timestamp of the new data, which is included in the ecosystem.

  • What makes Solana Unique from other blockchain projects?

Compared to its rival blockchain, Ethereum, Solana can handle the same challenges that Ethereum goes through. Interestingly, it claims to be one of the fastest networks currently operating due to its extremely high throughput. The network claims to have a transaction fee of 0.000005 SOL and 400–800 milliseconds of block-time. These figures make Solana a perfect alternative for handling dApps, ensuring they can seamlessly support thousands of customers. Furthermore, the Solana network can accomplish this high scalability level without requiring Layer 2 (L2) or sharding. This makes it one of the handful of Layer-1 networks capable of performing more than 1,000 transactions per second (TPS).

  • Solana Use Cases

The Solana project is the hub of many diverse projects that leverage its versatility and scalability. Thus, developers have been introducing many innovative ways to use the network. Below is a list of some of Solana’s use cases.

  • Decentralized Financing

Decentralized Financial (DeFi) organizations offer extensive financial solutions without needing the traditional banks or their transaction processes. Some institutions include Decentralized Crypto Exchanges (DEXes), automated financial smart contract systems, and digital wallets.

  • NFTs and Marketplaces

Solana has been used to develop non-fungible token (NFT) apps that enable crypto pundits to mint and exchange digital artwork. Users can use the Solana blockchain to establish their own NFT stores and virtual tools to develop NFTs or incorporate them into other apps like games.

  • Lending Protocols

Another use case of Solana is in lending protocols, as some Solana developers have developed systems that enable users to deposit or lend digital currencies using the Solana network.

Users can configure automated repayment systems or earn interests like Solend and Apricot Finance.

  • Web3 Applications

Web3 applications are among the most innovative digital solutions built on the Solana blockchain. These decentralized Web3 apps leverage the latest internet technologies. It is worth noting that Web3 apps are stable and open-source for all Internet users.

  • Games

The Solana blockchain is also home to some intuitive Play-to-Earn (P2E) games that reward users with cryptocurrencies and NFTs by playing and accomplishing tasks in games. These Web3 games can be over-the-web metaverses like Survival-puzzle games like Naga Kingdom or Multiplayer worlds like Aurory and Trainers.

  • Conclusion

Solana has emerged as one of the few effective digital solutions tackling the Ethereum blockchain’s challenges. It facilitates ultra-high transaction processing that is also highly cost-effective and secure. It ranks as one of the few L1 blockchains that enable several thousands of transactions per second, even competing with many contending L2 blockchains.

  • FAQs

Which blockchain does Solana use?

The Solana network leverages the Proof-of-History (PoH) and Proof-of-Staking (PoS) consensus algorithms. The PoH uses timestamps to determine the next block in the Solana ecosystem.

What does Solana blockchain do?

Solana network enables users to stake SOL tokens like other networks like Ethereum, which process transactions more efficiently and quickly.

What level of blockchain is Solana?

The Solana blockchain is developed using the Layer 1 blockchain level to provide developers with a highly performant smart contract ecosystem that provides scalability.

Who owns the Solana blockchain?

Solana (SOL) blockchain was developed in 2017 by Solana Labs, which is run by co-founders Raj Gokal and Anatoly Yakovenko.

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