Solana is one of the most attractive and noisy digital currency projects that aims to eliminate the scalability problems of cryptocurrencies . Solana intends to address the scalability of the blockchain in a way that does not compromise network security and decentralization. In the following, you can learn more about the Solana project and its potentials.
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Introduction
If you listen to China Blockchain tech activists, they will often talk about a serious challenge after talking about the benefits and attractive features of digital currencies. This serious challenge is nothing more than the scalability of blockchain -based networks.
These networks often can not meet the myriad needs after the growth and acceptance of users. When the network is busy, users face problems such as not completing transactions on time, increasing the waiting time for transaction confirmation, a staggering increase in fees, and so on in the network. It was these challenges that shaped Solana’s goal of overcoming such restrictions. Increasing scalability without sacrificing security and network decentralization are some of the challenges that Solana has pushed into the digital currency arena.
In 2017, Anatoly Yakovenko founded the Solana Bloc in Solana Laboratory. Solana has taken a whole new approach to verifying transactions. As we have said, many digital currency projects, such as Bitcoin , Atrium , and others, suffer from scalability and speed problems, and Solana can complete up to sixty-five thousand transactions per second using an innovative method called background proofing.
How does Solana work?
Solana is the third generation of Proof of Stake -based Chinese blockchain . This project uses a unique solution to determine the timing of transactions, which is a Trustless mechanism. The name of this solution is Proof of History .
Tracking the order of transactions is very important for cryptocurrencies. In the Bitcoin network, for example , this is done by categorizing transactions into blocks and a timestamp. After that, all nodes must approve the transactions, and this is a time-consuming process. Thus, there is a waiting time or, more simply, a long queue to approve the blocks. This is where Solana takes a different approach.
Proof of History
Solana events and transactions are all mixed or hashed using the SHA256 hash function. But how does this function work? In fact, this function receives an input and produces a unique output. It is very difficult to predict the output of each input. Solana’s initiative is to take the output of a transaction and use it as its next hash input. In this way, the order of transactions in the hashed output is created.
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This type of use of the hash function creates a long and unbroken chain of hashed transactions. As a result, a clear, orderly, and verifiable sequence of transactions is created, making it easier for the validator to verify these transactions, eliminating the need for a standard time stamp for transactions. The validator can add transactions to a block in the same way. Since the hashing operation requires a certain amount of time to complete; Validators can also easily check the hashing time.
In general, background proof (PoH) is different from the process that bitcoin uses as part of the proof of consensus mechanism. To understand this difference, it is not bad to examine the events within the Bitcoin network:
There are large groups of erratic transactions in each bitcoin block. In addition, bitcoin miners add time and date to the extracted block based on their local time. Therefore, this declared time may be different from other nodes or even sometimes incorrect. So the nodes must first check whether this time stamp is valid or not.
On the other hand, if the transactions are regular; Validators process and send less information per block. Therefore, using the hashed version of the latest transaction status, the approval time of the new block can be greatly reduced.
In principle, you should know that proving history is not a consensus mechanism, but an innovative way to increase the efficiency of time spent verifying the order of transactions.
If this method is combined with stock proof; Selecting the next validator for a block will be much easier because the nodes will need less time to validate the transaction sequence and the network will select a new validator faster.
The most important features of Solana
According to Solana ‘s blog on the Medium site, the project provides eight major technical features for China Blockchain technology. As a result, the China Bloc will be able to adapt to the capabilities of a centralized mechanism. Proof of background or history is one of the most prominent technical features of Solana that we have dealt with. However, it is not bad to briefly discuss other technical features of Solana.
- The Tower BFT fault tolerance consensus algorithm is a practical proof-of-optimized version of Byzantine Tower fault tolerance.
- Turbine is a block release protocol.
- Gulf Stream – is a Mempool poolless transaction sending protocol.
- Sealevel – is a parallel executable unit of smart contract.
- Pipelining – A transaction processing unit that optimizes the validation process
- Cloudbreak – Horizontal scale account database
- Archivers – Save a distributed general ledger or ledger
According to Solana’s team, all these features will lead to the creation of a network with very high capabilities. In such networks, the creation time of each block reaches 400 milliseconds, resulting in thousands of transactions per second. To better understand the high speed of block creation in Solana, it is not bad to know that the time to create each new block in the Bitcoin network is about 10 minutes and in the Atrium network is about 15 seconds.
Holders of SOL tokens can share their tokens as part of the PoS stock consensus mechanism in this blockchain. With a compatible wallet, the ability to stick tokens on validators that process network transactions; There is also. Therefore, a validator who succeeds in approving a transaction; He shares the reward with those who have given him shares.
This reward mechanism is nothing new in the world of cryptocurrencies and will lead to honest action to encourage agents to benefit the network. As of May 2021, about 900 credentials have been added to the Solana network, making the Solana network relatively decentralized. However, the number of Solana credentials is still small compared to competitors.
What is a SOL token?
SOL is a native to Solana network token that acts as a Utility Token throughout the mechanism of the Solana platform. Users need the SOL token to pay for transaction fees when making transfers or to interact with smart contracts on the Solana network.
SOL holders can also be network validators. Just like Atrium, Solana allows developers to build smart contracts and build projects based on the Chinese blockchain.
Solana’s network burns the token as part of its Burn model.
SOL uses the SPL protocol. SPL is the token standard in the Solana blockchain and works just like the ERC20 standard in Atrium.
In general, the SOL token has two main uses:
- Payment of fees for transactions that occur when using the network or smart contracts.
- Sticking as part of a consensus proof mechanism.
Building DApps or decentralized applications in Solana has also created a new opportunity to benefit from SOL currency. Chainvote, for example, is building a DeFi (Decentralized Finance) voting program for corporate governance, which uses SOL currency to vote .
Many decentralized programs are also being developed in Solana to supply, sell and sell NFT tokens .
Solana’s price almost tripled in the first two quarters of 2021, making it a popular choice among investors and traders.
Wallet SOL
You can store SOL tokens in the sollet.io wallet (designed by Serum Academy), and the Volt Trust is also suitable for holding SOL tokens . Another option for Solana ‘s wallet could be Atomic Wallet . This wallet supports desktop and mobile versions.
If you want to stick your SOL token ; You must use a wallet that supports this feature. For example, you can use the SolFlare wallet or the Solana Command-line tools. With these wallets, you can create a stock or sticking account and vote for one of Solana’s network credentials using SOL tokens. In this way the reward of each block that the validator will confirm; A percentage will be credited to your account.
The last word
As a relatively new project, Solana offers benefits such as speed and scalability. Its token price has also risen sharply, making it one of the most popular tokens for investors, and it has even been able to find a place among the top ten cryptocurrencies in the market with astonishing speed. However, the acceptance and use of the Solana network is still in its infancy.
It seems that until Solana is not tested in a real situation of high traffic; No one can give a definite opinion about its speed.
A fast network is definitely very efficient, but its benefits, at least in the decentralized space of the Chinese block, are only visible when more people start using it. In addition, its applications must be defined in such a way as to provide a solution to our real-world problems. Therefore, until Solana is more widely accepted; It is useless to comment on this issue. However, in order to expand the applications of Solana, it is not bad to know that Solana has also entered the market of unique tokens or NFT, and this promises a promising trend for the future of this project.
Many critics of Solana’s project believe that, contrary to the claims of Solana’s creators, the project has sacrificed decentralization to achieve speed and scalability because, as we mentioned, the number of Solana’s credentials and representatives is really limited compared to its competitors. This has led to strong criticism of Solana’s project, which they say is more central to cyber-attacks due to centralism than any other competitor.
Another topic that is widely discussed is how the SOL currency is distributed. Many believe that a large percentage of these tokens are in the hands of the creators of the Solana project in various ways, and in practice ordinary Solana currency holders can not play a very influential role in network decisions.
Of course, due to the high popularity of this project, some of these problems may be solved in the future in general.