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SOLANA; Why You Should Consider Buying Some.

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A Brief History of SOLANA
Solana was founded in 2017 to tackle Ethereum’s issues head-on.

Ethereum’s “triple threat” (high costs, slow speeds, and security problems) piqued the interest of the Solana team, who set out to build a blockchain network that could accelerate transaction times.

To address the remaining difficulties, the team worked to ensure that it could provide people with uncompromised security and significantly lower transaction fees.

See also: Three Ethereum competitors are growing at an unprecedented rate, outpacing Ethereum.

PoH, or “Proof of History,” became a new verification procedure in the tech sector as a result. Because of PoH, the Solana blockchain can handle 50,000 TPS (transactions per second), whereas Ethereum could only handle 15–45 TPS before ETH 2.0.

That’s a huge difference.

Solana’s mechanism of action

Source: Google.com

Based on a consensus technique known as PoS (Proof of Stake), Solana’s network is designed to be fast, secure, and affordable.

Many networks, such as Bitcoin and Ethereum, allow the most lucrative (expensive) transactions first. Essentially, this is because the old PoW consensus method still allows miners to prioritize the most profitable transactions.

See also: How to Spot The Next 100x Crypto Gem

PoH, on the other hand, resembles a stopwatch in design. You may compare it to the final timestamps given to competitors when they cross the finish line in a sprint race.

When transactions are recorded in real-time, PoH ensures that they are processed sequentially rather than miners prioritizing the most important ones first.

Because it also uses PoS, this solution has the added benefit of speeding up the entire network. Just remember that when using PoS and PoH together, it takes a lot less time to verify the sequence in which transactions are completed.

The process of selecting the next validator for a block becomes considerably easier when the two work together. Because nodes take less time to verify the order of transactions, the network can select a new validator considerably more quickly as a result of this.

Solana’s network uses significantly less power than Bitcoin’s since it consolidates transaction approvals into groups of nodes rather than running each node on its computer as in PoW. As a result, the network charges a low transaction fee of less than $0.01 per transaction, now. Bitcoin, on the other hand, has a price of roughly $20.

SOL TOKEN: THE FUTURE IS NOW!

Source: Google.com

SOL, the native token of Solana, powers the platform. You can stake your SOL tokens in the network if you own them, which is a standard feature of PoS blockchains.

Staking your tokens with validators who process network transactions, you can earn passive money every time you participate in a successful validation if you happen to be using a compatible crypto wallet.

See also: Which Cryptocurrency Will Be the next Biggest Thing?

As a result, everyone on the network has the best interests of the network at heart, which discourages bad actors because they are motivated by attractive reward pools.

This time last year, SOL was ranked 15th on the cryptocurrency market, with a price increase of 6000 percent from this time last year. Considering that this is a new initiative, it’s crucial to figure out why this is occurring.

Merchants throughout the world may use the Solana platform to accept crypto payments and receive complete payment settlements extremely instantaneously, making it ideal for online enterprises. Many of us are unaware that internet businesses must wait days or even weeks for their cash to be paid before they can ship our purchases.

A strong use case makes it easy to see why SOL is maintaining firm in the cryptocurrency market.

Solana’s recent big-name partnerships have boosted SOL’s growth. Kik’s native token Kin is among the largest of them and was specifically chosen by Solana because of its minimal costs, high speed, and iron-clad security. More than 60 million Kin wallet holders have recently made the switch to the Solana blockchain.

CONCLUSION

Solana is a relatively new blockchain project, but it has already delivered on the promises it makes about speed, security, and scalability. Despite the fact that the network has attracted high-profile partners, it is vital to keep in mind that it is still in its infancy.

Since its fundamental utilities promise mass adoption of crypto payments, SOL and its underlying blockchain could soon transform the way we pay for goods. Future use cases for the network look promising.

Consider all the ways in which Solana could enhance our own shopping routines in the future! We may be transacting on Solana’s blockchain without even realizing it in the future. When it comes to Solana, we won’t know how much of an impact the network has until we see how many businesses have partnered with it.

To sum it up, Solana is a competitive blockchain with the potential to fundamentally alter the way we all buy and trade physical goods in the future.

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Disclaimer: Bitxmi News is a news portal and does not provide any financial advice. Bitxmi's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Bitxmi News won't be responsible for any loss of funds.

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