What is Solana?
Currently, there are over 7,000 cryptocurrencies in the capital world. All these cryptocurrencies claim to have different designs from other projects. However, the point is that many of them have nothing new to offer. Solana is not like that. Solana is a blockchain-based platform that supports smart contracts and decentralized applications. A special feature of the platform project is the introduction of decentralized clock agent in the blockchain. Therefore, the platform has taken a different approach. In 2017, its founder discovered that the Bitcoin hash function could be used as a decentralized clock for the blockchain platform.
In this way, time stamping can increase the scalability and security of the blockchain. This allows Solana to process 50,000 – 65,000 transactions per second. Contrary to popular belief, Solana does not use a proof-of-stock algorithm. Solana has a variety of roles, including manager, approver, administrator, and more. In contrast to the delegated algorithms in which different roles are assigned to members, in this platform all nodes are responsible for performing the roles in the network.
Who invented this challenging crypto?
The most important character in the project is none other than Anatoly Yakovenko. Anatoly started his career at Qualcomm, where he had the opportunity to grow rapidly. Eventually, he was chosen as the technical director of the American company. Shortly afterward, his career changed and he was hired as a software engineer at Dropbox. In 2017, Anatoly worked on a project that introduced one of the most challenging tokens. Considering the large investments of famous companies like Foundation Capital and Muticoin Capital, it can be said that the founding and development team of this cryptocurrency are top people, which is a great advantage for this platform.
What are the advantages of SOL over Bitcoin and other Altcoins?
The platform is one of the best blockchain platforms in the world with 200 unique physical groups supporting over 50,000 transactions per second when powered by GPU. Unlike currencies that use a proof-of-work algorithm as a decentralized clock for the system, Solana uses a proof of history algorithm. By proving history, one can create historical records that prove that an event occurs at a particular moment in time.
This is used to solve scalability problems. The evaluated transaction receives a unique hash that can be publicly approved. This token is known in the digital currency space because it allows short processing of blockchain transactions. The hybrid protocol in this platform significantly reduces the validation time for processing transactions and executing smart contracts. For this reason, the fast processing time of the platform are considered by many institutions. All of these are the features that differentiate this platform from other platforms like Bitcoin, Ethereum, etc.
Disadvantages and challenges
Apart from its unique advantages, this platform also has problems that need to be addressed. Although this protocol is one of the best and strongest blockchain projects on the market, it is vulnerable to centralization because there are not enough validators in this blockchain.
Therefore, one of the reasons that many analysts and experts have criticized this token is the lack of these validators in its network. Many analysts have criticized the token business model, as they believe it is currently unprofitable and will take a long time to turn a profit. Another disadvantage of this token is the distribution method, which makes a large amount of currencies available to a particular group.
What will be the status of this token in the future?
The future will belong to a project that can provide a practical solution to the fundamental problems of early cryptocurrencies. Based on several data sets, crypto market analysts predict that the currency will have an upward trend from 2022 to 2025. In general, long-term trends should be considered in price analysis. However, there have been various predictions about the future of this cryptocurrency, as follows.
Analysts believe that by the end of 2021, the crypto could reach a peak price of $ 350 to $ 400. Given the uptrend, some analysts expect the currency to be valued at $ 1,200 by the end of 2023. In 2023, the maximum and minimum projected prices are $ 1,400 and $ 400, respectively. However, there are several forecasts for 2025. Some experts believe that the value of this currency may reach up to $ 3,000, while some cautious experts estimate its value at $ 850. All of these are mere predictions; we have to wait to see the direction of this cryptocurrency in the future.
Is it a serious competitor to Cardano or Ethereum?
These are the top three cryptocurrencies in the field of blockchain. Long transaction time and high fee in networks like Ethereum are weaknesses of blockchain technology. Therefore, users and investors have long sought a blockchain to solve these problems. Perhaps Solana is the blockchain everyone has been waiting for. The token has entered the cryptocurrency field with the slogan “Powerful for developers, fast for everyone”. Transactions take only 1 second, which means that this crypto is fast for all users. Currently, several projects are working on this platform and high scalability demonstrates this.
Because the platform supports smart contracts, it can host a variety of decentralized applications, from NFT tokens to decentralized exchanges. In other words, the purpose of this platform is to accelerate decentralization in every field. Low fees and very fast performance in verifying transactions and its decentralization have made this network very popular among developers, businesses and investors. Based on the above, this platform can be considered a serious competitor to other platforms, including Ethereum and Cardano.
Currently, Solana is one of the most efficient and sophisticated blockchains. This ecosystem has achieved very high efficiency with the use of new technologies, so it can process 50,000 to 65,000 transactions per second. This challenging token has many potentials and features, and many recognize it as a serious competitor to other cryptocurrencies such as Ethereum, Cardano etc. High acceptance as well as many applications promise a bright future for this platform.