Solana (SOL) Explained: Your Guide To The Fastest Cryptocurrency
Solana is one of the fastest and most functional web-scale projects that leverage the features of programmable blockchain technology to deliver Decentralized Finance (DeFi) solutions.
Solana rose from practically nothing in a blink of an eye to number 8 in the crypto market capitalization rankings. This surge came nearly a year and a half after its Mainnet beta debut in March 2020.
With a market value of approximately $47.9 billion, it has just surpassed Uniswap, USD Coin, and Polkadot and seems to be on a tear. Solana has increased in price 40-fold in the past year, from $3.50 to $159.34 at the time of this writing.
Because of its speed and throughput of up to 50,000 TPS, Solana is among the world’s fastest networks and first web-scale blockchain networks. For this reason, many dub Solana as the true “Ethereum killer.” Polkadot and Cardano are two other cryptos contending for this title.
In contrast to Solana’s transaction speed, a Visa card may only process up to 24,000 transactions per second. Still, these transactions take several days to settle, delaying the transfer of money from a bank account to another. SOL transactions are complete within fractions of a second.
Ethereum, Solana’s biggest competition, is now undergoing a significant update (Eth 2.0) to increase transaction speed and lower costs. The next goal of the update is to achieve 100,000 TPS, but there’s still a long way to go.
The Solana network is a fourth-generation blockchain that attempts to address the trilemma by building a fast and scalable network without sacrificing security or decentralization. Because of Solana’s robust protocol, it can provide global scaling capabilities for DApps decentralized platforms.
Is Solana the Fastest Cryptocurrency?
The end purpose of cryptocurrencies is to replace today’s inefficient and corrupt financial institutions. Honestly, we’ve seen incredible progress towards this objective thus far. It is now possible to:
- Obtain loans,
- Make decentralized payments
- Trade stocks directly peer-to-peer without a middleman or KYC paperwork
However, only one factor in preventing cryptos from becoming popular, and that factor is speed. Popular cryptocurrencies like Ethereum and Bitcoin have struggled to handle the billions of transactions that their clients process daily.
Even though many cryptocurrency projects boast about the number of transactions per second they can process, the statistics they give seldom hold up to their claims.
Two essential factors contribute to a cryptocurrency’s speed: the average transactions per second and transaction finality (TF). Therefore, before we can conclude that a particular cryptocurrency is the fastest, it must have a low transaction finality and high TPS.
Following this explanation, Solana is the world’s fastest cryptocurrency with over 50,000 TPS and 2.5 seconds transaction finality.
Other superspeed cryptocurrencies include:
- Algorand (TPS: 1000, TF: 45 seconds)
- Avalanche (TPS: 1000, TF: 1 - 2 seconds)
- Stellar (TPS: 1000, TF: 4 seconds)
- Ripple (TPS:1500, TF:4 seconds)
Is Solana Decentralized?
Solana is a decentralized blockchain that enables user-friendly, scalable apps for users around the world. The network is the fastest-growing ecosystem in the crypto scape, supporting over 400 projects across NFTs, DeFi, Web3, and others.
Decentralized applications (DApps) are one of the most exciting innovations of blockchain technology. The past few years have seen DApp developers launch several products, from decentralized finance (DeFi) platforms to games. Most of these DApps run on the Ethereum blockchain, but the high transaction fees and congestion on the network have become a limitation that is driving more and more top developers to Solana
What is the Max Supply of Solana?
Solana’s circulating supply currently has a market value of just a little over $47.9 billion, according to CoinMarketCap. However, if all Solana coins were circulating, their thoroughly diluted market value would be slightly above $83 billion.
What is Solana Used For?
Apart from Bitcoin, blockchains are capable of more than simply supporting transactions. So, what exactly does Solana do apart from transactions?
Solana is a platform enabling developers to build mobile DeFi applications, in addition to its cryptocurrency and blockchain. The platform now supports the Rust, C, and C+ programming languages.
The platform has “composable building pieces,” making it simpler to develop applications that cooperate and collaborate. In other words, they will interact with one another and with the Solana ecosystem, blockchain, and token.
In the future, we may see Solana-based games and apps, including robust player-to-player marketplaces, similar to those you’ll find in specific online ecosystems and games. For music enthusiasts, the Solana blockchain has a music streaming platform, Audius, which offers a more equitable remuneration scheme for recording artists.
Online shoppers will appreciate Solana if they ever get irritated by purchasing apps or making transactions within apps. Solana may allow more individuals to develop applications and assist creators and consumers avoid problematic app stores by combining its blockchain and its native digital currency with an app-building platform.
This strategy may also help with microtransactions. Making in-app purchases may be a headache since they usually demand credit card payments that must exceed a specific price level to be successful. Since Solana transactions are affordably cheap, they can cause a change.