What is Solana? Everyone probably has an idea of what cryptocurrency is and what it does, but with thousands of coins, tokens, and currencies to choose from, it becomes confusing after Bitcoin and Ethereum.
Everything You Need To Know About Solana | SOL
SOL, often dubbed Ethereum’s growing rival, is one of the thousands you can choose from. But what exactly makes it different from other cryptocurrencies? Why should I look into in it? Is it even worth the time? We’ll discuss all of these in this video.
What is SOL and Solana?
SOL and Solana are often used synonymously, but there’s a distinct difference between both. Solana is the open-source blockchain, and SOL is the token. But what does that really mean?
To put it simply, the blockchain is the platform or the database where information is stored in a digital format. Blockchains such as Bitcoin—the first-ever cryptocurrency blockchain—are necessary for cryptocurrency transfer, monitoring, and trading. The BTC currency, also referred to as the Bitcoin token, is the actual token that has value stored, tracked, and transferred on the Bitcoin blockchain. For Solana, their token is the SOL.
What Makes Solana Different?
In order to stand out or compete with other cryptocurrencies, you either have to be really good at what you market or you have to be unique. Solana is able to pull this off through their very fast block time.
Compared to Bitcoin’s, which is 10 minutes, Ethereum’s, which is 10 seconds, Solana has a block time of 400 milliseconds. This means that it’s faster than almost all blockchains. Solana can also handle up to 710,000 transactions per second which is extremely fast compared to bank transactions and even cryptocurrency transactions.
But aside from the fact that it’s extremely fast, Solana is also very cheap. This is because the blockchain utilizes a hybrid protocol of proof-of-stake and proof-of-history. Proof-of-history is a unique concept from Solana, and it works for them because they break their blockchain’s slots into periods which saves them time because validators are assigned to different tasks. In short, it lowers latency and increases output because they work simultaneously on different parts of the staking.
Is It Worth It?
With all of this tech talk aside, let’s discuss the most important thing: Is SOL worth it? Will we be able to profit? What’s the trend?
As of the moment, although SOL continues to push upward, there have been several dips in the past few months in the cryptocurrency’s value. However, that does not mean it’s not a good cryptocurrency. Like almost all cryptocurrencies, dips are normal and expected because they’re generally volatile.
With Solana planning to introduce NFTs to OpenSea and with them now being supported by Opera Crypto Browser, it’s very likely that there’s nowhere to go but up. Solana also currently has the highest number of active developers using the blockchain—almost double that of Ethereum, which is leading seconds. This means that Solana has a lot more in store when it comes to improvements.
However, cryptocurrencies will always be high risk even if you know what you’re doing because they’re extremely volatile. If it’s your first time looking into cryptocurrency, always know the risks. With this in mind, constant monitoring and research will always be good.
This post is for educational and entertainment purposes only – THIS IS NOT FINANCIAL ADVICE!
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