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Rationale for Solana
Why did we need another cryptocurrency when we already have so many of them? The answer to this question can help us find out the reasons for developing the SOL blockchain platform as a competitor to Ethereum and Bitcoin. In the case of cryptocurrencies, the order of transactions would rarely coincide with the order of blocks on the blockchain.
When users start a transaction on the crypto platform, it goes directly into an unconfirmed pool. Subsequently, the confirmed and verified transactions are added to the blockchain, thereby leading to the creation of multiple branches of blocks and double-spending. Solana helps in resolving these issues through automation of the transaction ordering process associated with blockchain networks.
Understand Its Definition
So, what is the new SOL network everybody is talking about in the crypto space? Solana is basically just another blockchain network tailored for developing cryptocurrencies such as Bitcoin and Ethereum. It is a better alternative to Ethereum, especially for its faster speed of transactions. As a matter of fact, the new blockchain platform could easily perform almost 50,000 transactions per second. SOL can easily incorporate multiple traits in the existing network, including application development or SOL token mining, within a few seconds. The cryptocurrency has rightly earned the credential of being a competitor to Ethereum.
The Solana blockchain provides assurance for speed, security, and censorship resistance. Based on the RUST programming language, SOL delivers a formidable base for safeguarding all transactions. In addition, the use of Proof of History also enables it to offer a highly scalable and efficient network.
Working of Solana Network
The history of Solana shows how it has been tailored as a faster alternative to conventional cryptocurrencies. If you want to find out answers to “what is Solana used for?” in detail, then you need to reflect on its working. Once you develop a clear impression of how SOL works, you can easily understand its applications. From a broader perspective, the SOL network is just a public blockchain protocol optimized for better scalability.
Apart from developing cryptocurrencies, the SOL blockchain also enables developers to create scalable dApps through the network. As a result, the decentralized applications could easily find their way around some of the formidable setbacks for performance. The Solana blockchain also brings a Proof of History consensus system, which empowers automatically ordered transactions. It serves as an internal clock for the platform alongside the Proof of Stake consensus mechanism for the security of the network.
According to Solana coinmarketcap evaluation, as of now, its market capitalization is around $30.79 billion. On top of it, the token registered 24hr trading volume growth of 20.88%. At present, it is the highest performing permissionless blockchain platform worldwide with 200 physically unique nodes. Proof of History helps in creating historical records for proving the occurrence of an event at a specific point in time. The algorithm is actually a high-frequency Verifiable Delay Function, which requires a certain quantity of sequential steps for evaluation.
Transactions or events undergoing evaluation would receive a unique hash and a counter, which you can verify publicly and effectively. The counter helps in finding the time of occurrence for each transaction or event. It would work exactly like a cryptographic time-stamp, and each node features a cryptographic clock for tracking the time and order of events on the network. As a result, Solana can ensure better efficiency.
In chart below we see the amount of solana transactions. From begin of 2022 the trend of transactions was descending until APR 9. After this date, the trend was upward but the amount of transactions has not been climbed to the previous date. The highest amount of transactions before APR 9 was around 66.7M but after this date the highest amount of transactions was around 52.7M so that show us the difference between these two is 15M.
