As the world watches and waits for Bitcoin to reach $60,000, you may have become aware of another altcoin which is quickly climbing the charts by the name of Solana. Why did it get so high on coinmarketcap.com? Solana is a unique altcoin project which aims to change the global economy.
It was built for speed, not performance, and was built with the purpose of being the fastest blockchain possible.
Solana is a blockchain similar to Ethereum which was built to host a number of dapps or decentralized applications. Eventually, the makers of Solana want to see vote on changes to the blockchain, and they will count each SOL as a vote. In other words, if you hold 5 SOLS, you would be given 5 votes in the upcoming vote for service changes for the Solana blockchain.Where Was Solana Started?Solana was led by Anatoly Yakovenko in San Diego, California.
Yakovenko has worked mainly in the telecommunications industry for most of his life, and is best known for creating smartphones.
When he was a Qualcomm employee, he developed the technology. Someday, the creators of Solana want to hold votes of how users feel about changes to the blockchain, and they plan to count SOL as the number of votes someone has. One night, Yakovenko came up with an idea to use the algorithm to build a blockchain with timestamps.
He published a whitepaper for his blockchain, called the Solana blockchain, in 2017.
Solana was invented by Anatoly Yakovenko in San Diego, California. It goes further than just a proof of stake method, since the system also uses a proof of history model. Imagine Solana as an industrial workplace where all factory workers are given the same job requirements. Somewhere along his journey, Yakovenko became a Bitcoin miner, which helped him to become familiar with the SHA256 hash function. Once your transaction is published to Solana's blockchain, it is processed, timestamped, given a clock, and included in a block of transactions. Whenever a Solana node receives a data packet, the blockchain is updated with a new block. It's so fast, how is that?
Now back to the factory workers. As each can perform the task of all the others, all the groups of workers led by a boss can operate at the same time to make transactions.
Solana is similar to Ethereum 2.0 in that it runs on a sort of proof of stake consensus protocol. When the transaction has been verified, the worker nodes will return it back to the leader to be timestamped. 500,000 transactions occur at Solana every second only because of the approval process. The combination of extra protocols, however, is what enables this possibility. First, there is Gulfstream, and this protocol is important because it allows nodes to know when they are next in line to process a transaction. The network has been pre-configured so no one has to wait for a node or group of nodes to come online, because the nodes that will process the next transaction have already been identified.
This protocol also defines which node will act as the master node for the next transaction—as the leadership is changed each time to help maintain decentralization. Sealevel, the second additional protocol, is what allows the small clusters of nodes to check their integrity while they run concurrently. This means a number of clusters can be staking transactions at the exact same time. Since the makeup of the clusters of nodes changes with each transaction, the Solana blockchain stays decentralized. How do I stake Solana?Solana is unique because unlike most of its competition, there is no minimum amount of Solana you have to own to stake transactions. Priority is given to those with more SOL, but if you have any amount of SOL, then you may stake a node.
More SOL is needed to process more transactions. Solana and Ethereum are direct competitors as they can be used for the same purposes and have the exact same benefits. The first additional protocol is Gulfstream, and this protocol is important because it lets nodes know when it will be their turn to process a transaction. A result of Solana's rapid development has been rapid creation of SOL tokens, so the price can move wildly from one moment to the next and the coin supply goes up and down. However slow Ethereum is, the price swings are much less volatile. The second additional protocol is the Sealevel protocol, and this is what allows the small clusters of nodes to double check each other, as they run concurrently. Although Solana has wild price swings, as mentioned above, it is far from the safest investment. Since the writing of this article, Solana's technology is still being tested, so it has yet to be proven.
This makes it an incredibly risky asset to invest in. However, the decision to invest in Solana is solely yours.
It is important that you consult someone you trust before making any serious financial decisions and are aware of any possible risks. The article is brought to you by MintDice's provably fair online Plinko game. Originally posted on the MintDice Blockchain Blog. This sentence is an example of .
As the world watches bitcoin rise towards $60,000, you may have heard of a new altcoin by the name of Solana, which is quickly climbing the charts.
How has it been that high on coinmarketcap.com? We can say that Solana is a new altcoin which promises to change the world. Because transactions process so quickly on Solana, SOL tokens are also created very quickly, which can lead to wild price swings and the coin supply goes up and down. Because of some borrowed Bitcoin technology, Solana can handle up to 50,000 transactions per second while remaining decentralized and secure. In order to reach the speed of 50,000 transactions hourly, Solana would use a process that involves the approval of transactions. But this process isn’t enough to propel Solana to this level.SOL is the cryptocurrency used to pay for fees and stake transactions on Solana's blockchain. The Solana creators plan to count SOL as the number of votes someone has someday when users decide whether to make changes to the blockchain.
Typically, if you hold 5 SOL, you will receive 5 votes in the upcoming ballot for the Solana blockchain's service changes. In addition, the protocol will also suggest the leader node for the next transaction, which tends to be changed each time. This helps maintain decentralization.Sealevel is the second additional protocol, and this allows small clusters of nodes to verify each other concurrently.
Yakovenko known for producing innovative technologies in the telecommunications industry. In the Qualcomm labs, he invented the technology. A Bitcoin miner became Yakovenko along his journey, which provided him with a full comprehension of the SHA256 hash function. This can also make it an extremely risky blockchain to invest in.
His paper describing his concept, the Solana blockchain, first appeared in 2017. The project is named Solana after a popular California beach.Solana is similar to Ethereum 2.0 in that it employs a sort of consensus protocol with a type of proof of stake.