Quick Facts:
- Solana is a layer-1 blockchain designed to facilitate decentralized and scalable applications.
- Solana leverages proof-of-stake (PoS) and proof-of-history (PoH) mechanisms to carry out transactions at low fees.
- SOL, the native token of Solana, is used for staking, covering fees within the ecosystem, and for governance.
What is Solana?
Solana was launched in 2020 by Solana Labs. It is a layer-1 blockchain designed to facilitate decentralized applications (dApps) and smart contracts. It serves as a hub for a diverse range of web3 projects, including decentralized finance (DeFi), non-fungible token (NFT) marketplaces, web3 games, and decentralized exchanges among others.
How Does Solana Work?
Solana operates on a hybrid consensus algorithm that combines proof-of-stake (PoS) with proof-of-history (PoH), allowing the blockchain to verify the passage of time between events without the need to wait for other validators to verify the transaction.
This enables the creation of a block in just 400 milliseconds, carrying out a throughput of 50,000 transactions per second (TPS) at an average cost of $0.00025 per transaction.
What Does Solana Aim to Achieve?
Solana's core objective is to revolutionize blockchain scalability by achieving high-speed performance while maintaining low costs, and without compromising on security and decentralization.
Among the projects thriving in the Solana ecosystem are decentralized exchange Jupiter aggregating 80% of the trade flow, pioneer liquid staking token (LST) protocol Marinade, and borrowing platform Kamino Lend.
Besides dApps, various decentralized physical infrastructure networks (dePINs) projects are also leveraging Solana. They are the decentralized wireless network Helium, dashcam-enabled mapping network Hivemapper, and GPU-rendering platform Render, to name just a few.
Tokenomics of Solana
SOL is the native cryptocurrency of the Solana network. It serves multiple purposes within the ecosystem such as covering transaction fees, engaging in staking activities, and in voting on enhancements within the network.
As of writing, SOL has a total circulating supply of 445,577,808 and a market capitalization of nearly $80 billion.
Where to Trade SOL
Looking to trade $SOL? Coins.ph, the Philippines largest exchange, offers a seamless way to trade 70+ tokens including $SOL!
To get started, sign up for a Coins.ph account, get level 2 or 3 verified, and start trading SOL on Coins Convert (Buy/Sell) or spot trade on Coins Pro!
