What is the Solana blockchain? Can SOL Coin go up again?
Solana was one of the most prosperous cryptocurrencies in 2021. With an astounding growth of more than 12,000%, the currency managed to demonstrate itself among the top 10 coins. Still, the coin has lost more than 85% since the bear market, which makes one wonder if it still makes sense to invest. In this post we will explain what is Solana blockchain to you and discuss Solana’s future. Let’s take a look at it in more detail.
What is Solana (SOL)?
Solana is a blockchain network that provides extremely high transaction speeds and increased scalability. Solana first appeared in 2019 and it was launched by Anatoly Yakovenko and Solana Labs. The Solana Foundation is behind the project.
What is unique about Solana is its own consensus mechanism called Proof-of-History. It significantly reduces transaction validation time, which improves transaction speed. The Solana blockchain can process up to 50,000 transactions per second, making it one of the fastest blockchains on the market.
Decentralized apps are currently a new important trend in the blockchain world. The market is in continuous development and is strongly challenged. Solana is aimed at enabling dApp developers to rapidly expand and scale up. The blockchain places great importance on the scalability of the assigned projects and wants to provide the developers with the bandwidth to make their decentralized products available globally.
Solana’s main emphasis was to create a rapid consensus mechanism. Each transaction is time-stamped before confirmation with Proof-of-Stake. This forms a chronological overview of transactions. This allows nodes to build blocks in the Solana network without first having to conform to the parent network. This guides the optimization of the speed of the network.
What problem does Solana solve?
All blockchains have a fundamental problem called the trilemma. Because a blockchain must be secure, decentralized and scalable. If you push to achieve all three factors equally, you will normally fail to achieve one factor. Solana tries to offset this. The Solana system can currently handle more than 50,000 transactions per second, and at the same time the platform is decentralized and secure. The roadmap envisages that even more than 100,000 transactions per second can be reached in the future. Likewise, a new block is built on the blockchain every 400 milliseconds, and therefore Solana is a good foundation for decentralized applications (DApps) and decentralized exchanges (DEX).
The SOL token
The native token of the Solana blockchain is the SOL token. It handles all transactions and smart contract processes in the network. By validating transactions or running programs, Solana users can create SOL. You can also earn passive income by betting. There are currently 345,893,417.12 Solana in circulation. In total, there are 511,616,946 Solanas. Nevertheless, the currency is inflationary, indicating that the maximum amount grows over time. Today, a Solana costs $40.94, giving it a market value of $14 billion. Solana’s all-time high was a little over half a year ago and was $258.93.
The roadmap: Does the SOL coin have a future? and what are the new updates?
2/
Solana
Mobile
StackIt’s the toolset you need to build beautiful, seamless web3 mobile experiences, and comes first on Saga, a flagship device from @Solanamobile.
Pre-order at pic.twitter.com/hSYPBaVM2i
— Solana (@solana) 23 June 2022
Solana is believed to be the fastest blockchain. The future is therefore extremely promising as technology continues to evolve. Already, the currency ranks 9th in terms of market capitalization, so its advantage continues to increase. In 2021, the coin grew by more than 12,000% and reached an all-time high with a market capitalization of almost 80 billion US dollars. Since the bear market, the cryptocurrency has lost more than 85 percent and currently only has a market cap of 14 billion. However, the future looks bright. Because not only does the currency itself have a huge perspective, but the inventors also continuously aim to develop Web 3 as well.
In late June, it was reported that a dedicated mobile phone OS for Web 3 would be released in early 2023. The name of this Android smartphone is Saga. The team has also launched the Solana Mobile Stack software environment for Android. It is an open source software development kit (SDK) that allows developers to create native Android apps.
How high will the currency go?
SOL/USD Weekly Chart – GoCharting
As mentioned earlier, Solana could register a massive price increase in 2021. So far, this success has not been replicated in 2022. Despite this, the currency still has great potential. Because if you look at rival Ethereum, it’s definitely still a big hill to climb. Should Solana eventually overtake its natural competitor in market capitalization, one coin would be worth more than $500. However, even if the currency only touched the ATH of $260, if one were to invest today, that would correlate to a growth of just under 650% percent. So if Web3 adoption moves forward and a new bull market starts, Solana could once again become one of the most profitable investments.
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