Three keys to Solana, one of the cryptocurrencies of the moment
As one of the world's most popular cryptocurrencies, it's no wonder that many people are curious about Solana. The easiest way to define Solana is as a programmable blockchain network. In the world of cryptocurrencies, it is currently one of the fastest and most popular.
Solana's ambitious design aims to solve the blockchain trilemma, a concept proposed by Ethereum creator Vitalik Buterin. A blockchain must sacrifice one of three essential aspects (decentralization, security, and scalability) in favor of the other two.
One of the fastest blockchains in the world
Solana currently can process more than 50,000 transactions per second (TPS). However, the developers claim that transaction speeds could approach 700,000 TPS as the network grows. This is considerably higher than Ethereum's current processing speed of between 15 and 45 TPS.
Many developers have been attracted to blockchain because of Solana's speed and low transaction costs. In addition, the Solana project hosts various dApps (decentralized apps) and intelligent contract initiatives. As a result, SOL is a widely used cryptocurrency globally, in the Top 10 in market capitalization, surpassing DogeCoin or Polkadot.
Solana's scalability favors low costs.
Solana's scalability ensures that transactions remain below $0.01 for developers and users. According to some market experts, Solana is at the beginning of its growth cycle and can match Ethereum in terms of price and market value in the next few years. Blockchains have greater scalability, depending on the number of transactions per second they can support, as more and better they scale. In decentralized ones, timing discrepancies and higher throughput slow them down, resulting in network congestion leading to exorbitant prices.
Solana's design solves this problem by having a leader node elected based on the Proof of Stake (PoS) mechanism to reduce energy consumption and increase transaction speed. Unlike Proof of Work (PoW) blockchains such as Ethereum and Bitcoin, which makes it greener. This is combined with Proof of History, a sequence of calculations that provides a digital record confirming that an event has occurred on the network at any point in time to create a trusted system for determining the timing of a transaction.
More secure transactions
Solana events and transactions are using the SHA-256 hash algorithm. This function takes an input and produces a unique output that is extremely difficult to predict. For example, Solana takes the result of a transaction and uses it as input for the next hash. According to its blog, the Solana team has developed eight basic technical features to help the blockchain match the capabilities of a centralized system in terms of security measures, including Turbine and sea level.
They recently announced Solana Pay, a new decentralized, open, and genuinely peer-to-peer payment protocol "to pave the way for a future where digital currencies prevail, and digital money moves across the Internet like data, uncensored and without intermediaries. Taxing every transaction."