Why Solana (SOL) Is Becoming The Preferred Blockchain For Developers And Quickly Gaining Value
Etherum (ETH) is solid, Cardano (ADA) is solid but still at a young age, Solana is here to teach both the way of the warrior. Solana blockchain popularity is also fueling the coin (SOL) rise in value, Solana went from 2 USD to 200 US in less than a year. By the end of July SOL was around 32 USD by September it peaked around 210 USD.
Let’s look at the YTD performance for the 3 coins.
Year-To-Date performance:
- ETH: +1,089 %
- ADA: + 195 %
- SOL: +15,466 %
I know what crosses your mind right now: either coins gain will beat any miserable 1-year interest offered by your banker! Got to love cryptos!
What is Solana?
Straight from my favorite crypto info platform, CoinMarketCap:
Solana is a highly functional open source project that banks on blockchain technology’s permissionless nature to provide decentralized finance (DeFi) solutions. While the idea and initial work on the project began in 2017, Solana was officially launched in March 2020 by the Solana Foundation with headquarters in Geneva, Switzerland.
To learn more about this project, check out our deep dive of Solana.
The Solana protocol is designed to facilitate decentralized app (DApp) creation. It aims to improve scalability by introducing a proof-of-history (PoH) consensus combined with the underlying proof-of-stake (PoS) consensus of the blockchain.
Because of the innovative hybrid consensus model, Solana enjoys interest from small-time traders and institutional traders alike. A significant focus for the Solana Foundation is to make decentralized finance accessible on a larger scale.
Why is the Solana blockchain so attractive to develop on?
- As of now, Solana transactions are faster than Etherum and Cardano.
- Solana transactions are cheaper than Etherum and even Cardano.
- Unlike Ethreum or Cardano, Solana specifications are well documented and available, which provides all the support necessary to develop apps on Solana.
- Solana uses Proof-of-History (PoH) which means that validators can process transactions as they come, without having to wait for a block to be filled, which improves performance. PoS and PoH are low energy consumption methods.
- Solana uses Turbine, a block propagation protocol breaking information is small bits. Etherum is not yet there though as plans for it.
- Sealevel feature which is parallel execution of smart contracts. It allows, by multithreading, for tens of thousands of smart contracts to modify the blockchain at the same time.
- Solana cloudbreak also improves hardware utilization by allowing SSD drives to reach near RAM speed.
- Gulf Stream is a management system allowing to process the memepool transactions in seconds.
- Solana proprietary Byzantine Fault Tolerance (BFT) consensus mechanism reduces messaging overhead and latency.
- Solana pipeline is a method of maximizing hardware resources inside the Solana network.
- Replicators are used by Solana to maintain a distributed ledger store for petabytes of data providing integrity on the network.
- Solana ecosystem, though not as large as Etherum (for now) is growing rapidly, which included my favorite exchange FTX.
- The Solana management team is well connected with some of the brightest crypto groups. They are involved in the Serum (SRM) project with FTX and Alameda Research. Serum is a decentralized exchange and ecosystem that brings unprecedented speed and low transaction costs to decentralized finance. Expect more innovations from the brilliant brains forming this alliance.
- When developing financial or trading apps, security, transaction cost, and performance are critical. Solana, FTX, and Alameda Research are working at delivering world class technology whereas others are still struggling with security, fees, and performance.
- Solana was founded in 2020, much younger than Etherum, however is already a leader in the blockchain space. In this very short period, Solana is what other blockchains are trying to be.
Conclusion
The future will be defined by the blockchain endorsement for new ventures (ecosystem and community). The management teams behind the blockchain and their vision will set the tempo. Solana and Cardano are solid and eating into Etherum’s market share at a rapid pace, a war is on!
Got some SOL?
Disclaimer: I am not a Financial Advisor my blogs are intended for educational purpose only.
If you enjoyed and benefited from this blog, crypto donations are welcome to help support my future blogs:
BTC: bc1qm3f8ky4xcwg62nn9n9nx5dnmtkklehwkhz5753
ETH: 0x13c77781d7661420fB58b538a18A5B47eA50F462
XMR: 4AS1JSypyE84B7dYd4CRvDKQJHHwxKCY6KGC8NjXCyR2SD9qQLVVDknekE4eerDbkRRviUtG3Q1j8cE7Qjujcugw6W7deno
ADA: addr1q8vw4ct4zgsv4qan0nylcnk82gngsqtukyz43ms9htuthmwcatsh2y3qe2pmxlxfl38vw53x3qqhevg9trhqtwhch0ks8js0um
SOL: 7EvtSvhfZJRDEnnHmaWBKzqmkqi8yTv1FkJ3gP9S2YW6
LTC: LXhGaCqmWcr2VKuANqgVf81gsFZejVyfjZ
SHIB: 0x13c77781d7661420fB58b538a18A5B47eA50F462
