Introduction
What is Solana ?
Solana (SOL) is a cryptocurrency which is also a public Blockchain platform created to overcome the scalability challenges that have plagued Blockchain technology. It is an open-source protocol, a project conceived, created and designed by Anatoly Yakovenko, with the idea and intention to facilitate and make more and more friendly the creation of the already known dApps, Decentralized Applications. Solana (SOL), a high-end functional protocol, is also based on the decentralized, free or independent ecosystem that characterizes Blockchain technology. All this leads to the generation of excellent DeFi, Decentralized Financial solutions.
Why it is competing with Ethereum
Solana (SOL) considers the scalability and adaptability of negotiations as a primary objective, through the introduction or insertion of the "Proof-Of-History" (PoH) consensus in conjunction with the "Proof-Of-Stakes" (PoS), which comes from the Blockchain. And Solana blockchain Performs about 55,000 Transactions Per second, Ethereum blockchain even after adopting the POS model allowing it to perform 20,000 to 100,000 transactions per second it still has high fees which makes Solana more enticing for users.
If we make comparisons and see the basics of their activity Ethereum (ETH) and Solana (SOL) in numbers, we find that, for one million trans- actions in Ethereum (ETH), 300,000.00 US dollars are paid, while for one million transactions in Solana (SOL), an average of 10.00 US dollars is paid; that is, 0.00001 USD for each transaction.
Sol
The native currency of the Solana blockchain which serves as the currency being used on the Solana platform which is burned as part of its deflationary mechanism. Users need to possess SOL in order to pay transaction fees when making transfers or interacting with smart contracts. SOL holders also have the option to become network validators.
It is estimated that there are approximately 260 million Tokens being part of the most prominent platforms for exchanges, existing in the world, and despite the fact that the valuations estimated by the Solana Foundation, whose headquarters is established in Switzerland, carefully guiding the movements of this cryptocurrency, is that an average of 489 million of these Tokens are produced and launched to the market.
NFTs & DeFi
DeFi is an integral part of any blockchain ecosystem because of the possible earnings generated. While Ethereum miners get paid handsomely via transaction fees, Solana’s business is more service-oriented. Cumulative DeFi revenue across all blockchains is set to surpass $3 billion soon, and Solana is well-positioned to grab its share of this emerging market.
Solana's transaction times make it a popular choice for decentralized finance (DeFi) projects, with over $150 million raised in 2022. Key DeFi projects on the network include OpenBook and Jupiter Aggregator
DeFi is not the only driver of Solana adoption. Digital artists have also embraced the platform’s low fees and created some smash hits in the process.
The two top NFT projects on Solana are “Degenerate Ape Academy,” which hit the ball out of the park in August 2021 and sold out in minutes, and rival “Solana Monkey Business,” whose secondary sales have continued to grow
Conclusion
Solana (SOL) has solidified it's name as a leading blockchain platform with a high-speed and robust infrastructure suitable for DApps such DeFi, and NFTs. It's forthcoming upgrades, such as Token-22 and enhancements in the solana core will make it more secure, efficient, and flexible. Solana is well positioned to keep driving growth of the broader cryptocurrency market and play an essential role in developing exciting new technologies such as the metaverse
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