Decentralized apps (dApp) have found their use in different directions: from online games and virtual casinos to independent financial projects. A common problem for developers and users is the network throughput speed. The most common blockchain for dApps is Ethereum. However, the increased demand is overwhelming the platform, causing problems with speed and an increase in the price of transactions. The race for high performance leads to new projects.
Solana’s open-source platform impresses with lightning-fast transaction processing and smart contract execution. Our today’s review of the Solana cryptocurrency ($SOL) will help you understand the main project’s features. Let’s start with Solana meaning!
Solana Meaning: Key Things to Know
What is Solana? Solana is a blockchain platform for building highly scalable dApps. The essence of the Solana architecture is to use a set of software algorithms capable of removing the performance bottleneck caused by the software when implementing the blockchain.
In this way, the transaction throughput can scale in parallel with the network throughput. Particular attention is paid to ensuring that the architecture is scalable, secure, and decentralized. That is, it meets the basic requirements for a blockchain system.
The goal of the crypto project is to create a convenient scalable protocol with high throughput. Also, according to the developers, the platform is focused on minimizing fees and costs for operations.
According to the creators, Solana ($SOL) is an open, fair, censorship-free global market that can compete with the New York Stock Exchange.
What is Solana? Well, experts call Solana an advanced fourth-generation blockchain. Matt Hougan, chief investment officer at Bitwise Asset Management, said:
Solana is the leading Ethereum competitor. If you’re investing in Solana, you’re betting that its technical sophistication will help it leapfrog Ethereum.
What Solana Is: Key Features to Know
What is Solana all about? Blockchain consensus is achieved when participants solve a mathematical puzzle. This mechanism is called Proof-of-Work (PoW). The process of fully confirming a BTC transaction takes about 60 minutes and about a minute in the case of Ethereum. The procedure is insanely energy-intensive, so neither bitcoin nor ether has proven scalability.
Elon Musk cited the strong dependence on energy consumption as explaining why Tesla no longer accepts BTC.
The creator of Solana, Anatoly Yakovenko, proposed his idea of consensus, which he called Proof-of-History (PoH). The Solana blockchain is a kind of synchronized clock that essentially timestamps every transaction and deprives miners and bots of the ability to determine the order of records on the network.
Solana introduces other innovations, such as sending transactions to validators even before the previous batch of transactions is completed. This maximizes the confirmation speed and increases the number of transfers that can be processed both simultaneously and in parallel.
What Are Solana Clusters?
What is Solana definition of a cluster? Well, a cluster is an important concept in the Solana network. It is understood as a complex of computers working together and considered in the form of a single system.
Solana clusters are needed so that a user can at any time save an immutable record of events in time or a programmatic interpretation of these events related to a specific app. One use case is identifying the computers that most effectively support the network. Another option is to track the fact of ownership of real assets.
In either case, the cluster creates an event record called the ledger. The ledger will be stored throughout the entire existence of the cluster. As long as at least one copy of it exists, the validation results will remain available, regardless of whether the project that created them is still running.
Solana Definition (SOL): What Is SOL Token?
Let’s consider ($SOL) Solana definition. $SOL is a native token of the system whose main function is to protect the network using staking. The network uses the dPoS mechanism (Proof-of-Stake with delegation).
Thus, this means that any $SOL token holder can delegate part of their assets to one or more validators that process transactions and ensure the stability of the network. The $SOL token can also be used for:
- Governance. $SOL is then used in the cluster in exchange for executing programs on the chain, launching apps, or verifying data.
- Micropayments. For this, a fractional unit is used — lamport. Part of the coin was named after the computer scientist from the United States, who contributed a lot to the project’s architecture. 1 lamport = 0.000000001 $SOL.
- Payment of commissions within the network.
- Node rewards. $SOL is received for block validation.
- Staking. Holding coins is necessary to maintain the efficiency and safety of the network.
Solana (SOL) Price Prediction
Once we’ve learned Solana meaning, let’s consider its price prediction. At the time of writing, a short-term sentiment was neutral, with $SOL trading around $192, according to CoinMarketCap.
The SOL price might hit the $300 mark by the end of the year if a bullish trend were to reemerge. Alternatively, if the hype it has caused turns out to be insufficient, and its holders get affected by FOMO, SOL owners might sell off their remaining coins to try and get some profit, thus decreasing its price.
The $SOL coin price prediction from WalletInvestor was bullish, projecting that the price could rally in the coming weeks to end the year 2022 at $562. The algorithm-based site predicted that the $SOL price could rally to an average of $1,682 by the end of 2025.
How to Buy Solana (SOL) Crypto at Switchere?
If you’re wondering where to buy Solana tokens, you should definitely think about buying them at Switchere. On our platform, you have an opportunity to buy $SOL in the fastest and most convenient way. Moreover, we offer some surprising bonuses! Users of our platform enjoy a 0% service fee for the first order.
At Switchere, you can buy crypto for fiat money or swap crypto for crypto. In addition to traditional purchases with a bank card, you can use alternative payment methods available (SEPA, SOFORT, M-Pesa, Asian local banks)
Here is an easy step-by-step guide on buying $SOL at Switchere!
- Visit our website and log in to your account.
- Choose the currency pair for exchanging, enter the amount and your Solana wallet address.
- Check the transaction details and click on the ‘Make Payment’ button.
- Enter your card details and click on the ‘Pay Now’ button. Please take into account that you have a limited amount of time to send your funds. Elsewise, the transaction will be canceled automatically.
- Once you send the funds and your transaction receives the required number of blockchain confirmations, the amount of purchased $SOL will be sent to your provided wallet address accordingly. Click on the ‘Show Order Status’ button to check the status of your transaction.
- Congratulations! The transaction is completed, and now you can check your Solana wallet.
Usually, Switchere transactions take 5-30 minutes. If you have any troubles with the exchange process, let us know at [email protected].
Today, we’ve learned Solana meaning and its main features to know. The value of the $SOL cryptocurrency is attracting more and more users. The project has sufficient potential. The Solana coin can definitely be recommended for investment. Still, it is important to choose the right moment for investing. To do this, you need to monitor trends in the cryptocurrency market and changes in the project itself.