Solana is a crypto project built on the successes of Ethereum, aiming to improve its shortcomings.
The Solana project was developed by Anatoly Yakovenko and is named after a coastal city in Southern California by the same name. Yakovenko began work on Solana in 2017 and launched it in March 2020. Today, SOL is one of the most popular crypto coins and is ranked as the 9th biggest coin by market cap.
How Solana Works
The Solana blockchain, often called the Ethereum killer, is modeled closely after Ethereum. Its native token, $SOL, is used to facilitate transactions on the network. A major difference from Ethereum is that Solana uses a consensus mechanism called proof of history. The mechanism relies on timestamps to define the next block in the chain.
Besides the proof of history algorithm, Solana also used a modified proof of stake algorithm called the delegated proof of stake. The developer’s goal is to resolve the scalability problems plaguing most major blockchains. Combining the proof of history and proof of stake mechanisms helps bolster the security of the Solana blockchain.
Due to its unique innovations in its development, Solana can offer exponentially higher speeds than its closest competitors, Ethereum and Cardano (ADA). Solana aims to offer the speed of a centralized network like Visa while maintaining the security of a decentralized network.
Solana (SOL) Token Historical Price Performance
The SOL cryptocurrency experienced its first major break in August 2021, a year after its launch, when the Degenerate Ape Academy NFT project gained popularity. In the first three weeks of that month, the price of SOL jumped from $30 to over $75. It maintained the upward momentum; in November 2021, it peaked at nearly $260.
Since then, the price of Solana (SOL) has dropped significantly. For most of 2023, SOL has stagnated at around $14. However, in March 2023, the price jumped to around $26, with many experts predicting it was the start of a bull run. Shortly after, the price fell back to around $15. SOL prices have been rising, currently trading at around $20. Many crypto experts predict it could soon exceed its 2023 all-time high price of $26.
[Click The $SOL Chart Above To View On CoinMarketCap]
The Future of Solana
The Solana developer team has designed it with a long-term strategy in mind. Its founder, Yakovenko, was inspired by the development of the telecommunications tech industry, whose capabilities doubled each year while he worked at Qualcomm.
With a development team consisting of tech experts who formerly worked at tech giants like Google, Apple, Qualcomm, Microsoft, and Dropbox, the project will undoubtedly succeed. Solana is always evolving, with tweaks to make it the fastest and most scalable blockchain platform.
Summary
Solana is a project primed for near-term success while being sufficiently scalable and adaptable to meet future challenges facing blockchain projects. SOL would be a wise choice if you are interested in a long-term crypto investment.
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