What is Solana
Solana is a web-scale blockchain that provides fast, secure, scalable decentralized apps and marketplaces. Solana system supports 50,000 Transactions per second, and it has a 400ms Block Time. The system can also support the upper bound of 710,000 transactions per second on a standard gigabit network.
Solana was founded back in 2017 by Anatoly Yakovenko. He is widely experienced in compression algorithms. He bands together with Eric Williams and Solana’s CTO Greg Fitgerald, they created a new process of dealing with traditional problems in the Bitcoin and Ethereum blockchains.
They hoped to create a trustless and distributed protocol that would allow for more scalability. They got attention from many investors worldwide, and investor groups like Multicoin Capital, Foundation Capital, SLOW Capital, CMCC Global, Abstract Ventures are already invested in Solana.
Solana’s Consensus method
Solana has 200 physically distinct nodes supporting more than 50,000 TPS when running with GPUs. Bitcoin uses POW(Proof of work) as its algorithm, But Solana, on the other hand, uses Proof of History. Proof of History creates historical records that prove an event occurs during a specific moment in time. The algorithm is a high-frequency verifiable Delay Function. This function requires a specific number of sequential steps to evaluate.
How does Solana Work
- Input of transactions to the Leader
- Leader will sequence the messages and orders them efficiently so that it can be processed by other nodes
- The leader then executes the transactions on the current state that stores in the RAM
- Leader will then publish the transactions and signature of the final state to Verifiers (replication nodes)
- Verifiers will then execute the same transactions on their copies of the state and publish their signatures of the state if it receives confirmation
- Published confirmations will then serve as votes for the consensus algorithm
What happened to Solana in Last week
High-speed blockchain Solana (CRYPTO: SOL) saw its native token surge by more than 41% to a new all-time high of 75.15$. Solana is called the ETH Killer, and now it’s likely to do exactly that. SOL recorded a 472.48% uptick in daily trading volume, which exceeded $3.9 billion.
Solana processes about as many transactions in a month as Ethereum has in its entire history. While this has more to do with Solana’s network capacity than user growth, the blockchain recorded a total transaction volume of 24.1 billion as of last weekend. TVL(Total Value Locked)of Solana has reached 1.96 Billion driven by decentralized exchange Serum.
Can Solana Do another 1000%?
Solana has a Total Supply of 286,438,040.38 SOL and a Market Cap of $20,897,194,175. So to do another 1000%, Solona should go to a 400B market cap, and it’s doubtful to happen in this bull phase. But It still can grow 100%-200% if this bull market continues to rally.
SOL can go to 0.618 fibbonachi level can retrace back to o.5 fibbonachi level. Still, it’s higher than the current price. So don’t sleep on Solana now. Nothing is Financial advice and DYOR before investing any of your hard-earned money.
