Solana is an open-source initiative that leverages the permissionless nature of blockchain to offer decentralized finance (DeFi) solutions. Although the development of the idea started in 2017, the Solana Foundation officially launched it in March 2020, operating out of Geneva, Switzerland.
For a more in-depth understanding of this project, you might want to explore our comprehensive analysis of Solana.
The Solana protocol is crafted to support the creation of decentralized applications (DApps). It enhances scalability by integrating proof-of-history (PoH) consensus with the foundational proof-of-stake (PoS) mechanism of the blockchain.
This innovative hybrid consensus model has garnered attention from both individual traders and institutional investors. The Solana Foundation is committed to making decentralized finance more widely accessible.
Who Founded Solana?
Anatoly Yakovenko is the key figure in bringing Solana to life. He began his career at Qualcomm, quickly advancing to become a senior staff engineer manager by 2015. After that, he transitioned to a role as a software engineer at Dropbox.
In 2017, Yakovenko initiated a project that eventually evolved into Solana. He collaborated with his former Qualcomm colleague Greg Fitzgerald to establish Solana Labs. As they attracted more ex-Qualcomm employees, they eventually launched the Solana protocol and the SOL token in 2020.
What Distinguishes Solana from Others?
One of Solana's standout features is the proof-of-history (PoH) consensus, pioneered by Anatoly Yakovenko. This innovation significantly enhances the protocol's scalability, improving its overall functionality.
Solana is renowned in the crypto world for the remarkably fast processing times offered by its blockchain. Its hybrid protocol dramatically reduces the time needed for transaction validation and smart contract execution. These rapid processing speeds have piqued the interest of numerous institutional investors.
The Solana protocol caters to both individual users and large enterprises. A key promise of Solana is that users won't encounter unexpected increases in fees and taxes. It maintains low transaction costs while ensuring scalability and quick processing.
Solana experienced significant growth during a bullish trend, with its price surging over 700% since mid-July 2021. The release of the Degenerate Ape NFT collection propelled SOL's price to a new all-time high above $60, and it has continued to climb, driven by increasing developer activity, strong institutional interest, an expanding DeFi ecosystem, and the rise of NFTs and gaming within Solana. Solana's price reached an ATH of $216 on September 9, 2021.
Praised for its speed and performance, Solana is often compared to Ethereum and seen as a potential competitor to the leading smart contract platform. However, the network has faced repeated outages that have affected its price and its ambition to become the "Visa of crypto." Additionally, there are accusations that its ecosystem favors venture capital investors through unfair tokenomics.
How Many Solana (SOL) Coins Are Currently Available?
According to the Solana Foundation, 489 million SOL tokens are set to be released into circulation, with around 260 million of these already available on the market.
The distribution of SOL tokens is as follows: 16.23% were allocated to an initial seed sale, 12.92% were reserved for a founding sale, 12.79% of the coins were distributed to team members, and 10.46% were given to the Solana Foundation. The remaining tokens have been or will be released through public and private sales.
During the initial seed sale on April 5, 2018, the price of Solana was set at $0.04. Considering the recent all-time high, this marks an impressive 5400X return on investment (ROI).
How Is Security Ensured on the Solana Network?
Solana employs a distinctive mix of proof-of-history (PoH) and proof-of-stake (PoS) consensus methods.
Proof-of-history plays a central role in the Solana protocol, handling most transaction processing. It records successful operations and the time elapsed between them, maintaining the blockchain's trustless nature.
The proof-of-stake mechanism functions as a supervisory system for the PoH processes, verifying each series of blocks it generates.
The unique combination of these two consensus mechanisms distinguishes Solana in the blockchain sector.
Where Can You Purchase Solana (SOL)?
SOL tokens are available on a wide range of exchanges. Binance is a prominent platform for trading Solana, boasting the highest SOL/USDT trading volume, which was $753,103,225 as of September 2021.
Coinbase follows with a trading volume of $343,872,841. Other platforms where Solana can be traded include Bilaxy and Huobi Global. It's important to remember that investing in cryptocurrency carries inherent risks, similar to other investment opportunities. Common Solana trading pairs include SOL/USD, SOL/GBP, SOL/AUD, SOL/JPY, and SOL/EUR.
