- According to Solana’s official website, Solana can process roughly 50,000 transactions per second.
- This is tremendously fast compared to Bitcoin’s average 7 TPS and Ethereum’s average 25 TPS.
- Additionally, the network has an estimated transaction fee of as low as $0.00025 per transaction.
An Introduction to Solana (SOL)
Solana is a blockchain technology that accomplishes optimized scalability and high performance through its base-layer blockchain technicalities. Solana’s operations are centered in Geneva. The project is also open-source. Solana aims at eliminating the necessity for developers to work around performance bottlenecks when designing dApps (decentralized applications). Automatic transactions are achieved via the use of Proof-of-History (POH). To enhance security, the project also makes use of the Proof-of-Stake algo.
The entire design is also meant to be compatible with most LLVM smart contract languages and achieve low transaction costs.
A Brief History of Solana.
The story of SOL began after Anatoly Yakovenko (the founder) released a detailed whitepaper on the workability of the Proof-of-History technique. The time taken to reach an agreement about the order of transactions is one of the key barriers of scalability for Ethereum and Bitcoin. Yakovenko argued that this new approach could automate the transaction process, hence solving the scalability barrier. Anatoly joined with Stephen, Greg and some former Apple engineers in 2018 to form a company that was later named Solana. The company raised roughly $20 million between mid-2018 and mid-2019. Solana launched on Mainnet Beta in the end of Q1 2020.
Why Solana Could be a Good Investment Opportunity.
Solana’s technology allows for massive scalability.
According to Solana’s official website, Solana can process roughly 50,000 transactions per second. This is tremendously fast compared to Bitcoin’s average 7 TPS and Ethereum’s average 25 TPS. Additionally, the network has an estimated transaction fee of as low as $0.00025 per transaction. These features have led to the rapid growth in the number of people transacting through the network over the past 2 years. According to their official website, Solana has processed more than 23 billion transactions. With this ability to deliver fast and affordable transactions, it is accurate to predict that Solana’s customer base will continue to grow in the future.
Solana’s price action is in an upward momentum.
In August 2020, Solana was worth roughly $2.7 per coin. At the time of writing this article (13th August 2021), Solana was worth $44.197 per coin. That is an estimated 1607% growth within 12 months. While this does not guarantee that price will grow with the same rate in the coming year, it can be interpreted as a sign of the coin’s growth potential. The daily chart below highlights this growth;
For those who trade crypto in the spot market, Solana is worth adding to the watch list. In the past weeks, price has been trending in an upward channel, which could have offered several short-term, long position entries. The 1hr chart below shows this price action;
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