Solana (SOL): What is it?
Solana crypto by Crypto Nation – July 12, 2021
By Crypto Nation – July 12, 2021
Solana crypto card summary:
Solana fundamental data
- Name: Solana
- Symbol: SOL
- Type: Blockchain, Smart Contract
- Consensus: Proof Of Stake (PoS) + Proof Of History (PoH)
- Year of creation: 2020
- Founder: Anatoly Yakovenko
- Official website: solana.com
- Mainnet: Yes – https://explorer.solana.com/
- Whitepaper: https://solana.com/solana-whitepaper.pdf
- Code: https://github.com/solana-labs
- Twitter: @solana
Solana market data
Below are the basic market informations regarding this cryptocurrency:
- Price: It is expressed in dollars ($). There is also its percentage change (%) over the last 24 hours.
- Rank: Ranking of this cryptocurrency among all those referenced on CoinMarketCap. This is done according to the market cap.
- Market cap: Market capitalization represents the total dollar ($) value of all coins in circulation.
- Volume: It represents the total dollar ($) amount of the cryptocurrency in question traded over the last 24 hours.
What is the goal of the Solana project?
Solana is a scalable blockchain based on an innovative hybrid consensus, combining Proof of History and Proof of Stake.
It is currently the fastest in terms of transaction speed, being able to debit 65,000 transactions per second. In addition, the costs are very low (~ 0.00005 SOL).
There are no less than 120 projects that make up the ecosystem, 50 of them having joined Solana since March 2021, the two main Stablecoins, the USD Coin (USDC) and Tether (USDT) are part of it.
Origin of the project
The Solana project began in 2017 in California, near the beach of the same name where Anatoly Yakovenko, the founder, long worked on its design.
However, it took him 3 years before really launching the project, with its blockchain, in March 2020.
Between April 2018 and July 2019, 20 million dollars were raised thanks to the sale of tokens, then 2 million during an auction in 2020.
A good number of their employees come from firms such as Apple or Microsoft.
What is its use?
In order to participate and use the network, it is necessary to have SOL. The tokens initially allow you to pay the fees for using the blockchain.
Otherwise , it is possible to stake tokens, or even to become a validator node of the network, and thus obtain rewards. The average interest generated by SOL’s staking is 7% per year.
To take advantage of it, we advise you to do it directly from the Atomic Wallet.
Management of the economy (on 12/07/2021)
Solana is a bit more complex than other cryptocurrencies in terms of tokenomics. The bottom line is that the SOL seeks to maintain a balance between inflationary and deflationary forces.
The biggest source of inflation is the distribution of rewards to validators and stakers. These are paid on a schedule that produces a pre-calculated inflation rate. It started at 8% a few months ago and decreases over time, until that inflation hits its final rate of 1.5% within a decade or so.
To fuel deflation, 1% of the fee for each transaction is burned. With enough transactions per second, the amount burned could thus be equal to 1.5% per year. In this way, in the future, the SOL could be close to 0% inflation. One could even imagine that the burn would become higher than 1.5% per year, thanks to very many transactions following a more massive adoption, which would then make Solana deflationary in the long term.
Currently, almost 500 million SOL have been created. About 225 million were destroyed, so 275 million of them are in circulation.
Diagram of the evolution of the cryptoactive
Where to store your cryptocurrency
If you prefer to take your cryptocurrencies out of centralized exchanges, you can store your Solana (SOL) via various solutions:
- Atomic Wallet, a very complete and secure software wallet, in which you can directly store your SOL.
- Trust Wallet, bought by Binance, it has become the benchmark mobile wallet.
- Ledger, very secure wallet hardwares, the best known being the Ledger Nano S.
- Solflare, a “non-custodial” web portfolio compatible with Ledger dedicated to SOL.
- Sollet.io, a web portfolio designed for the entire Solana ecosystem.
More details on the different types of cryptocurrency wallets on our dedicated page, accessible by clicking here.
Our opinion on this project
Solana stands out as a revolution in terms of performance with its overpowered blockchain, capable of competing with traditional payment systems.
Its economic model clearly shows where its founder, Anatoly Yakovenko, wants to go with this project. A technology of the future, there to perform over the long term.
The result of long years of research, Solana is already a success, while the expansion of its ecosystem has only just begun.
The SOL is proving to be fundamentally strong, and just as strong in the market, as it is indeed one of the cryptocurrencies that seems to resist the most recent bearish volatility shocks.
Competition is strong in the cutting-edge blockchain segment, but Solana seems to have a head start, it remains to be seen if the project will succeed in keeping it in the coming years.