- Solana (SOL): The Better And Greener Bitcoin? (Ethereum Competitor)
Elon Musk has triggered a debate that has also affected the market. Bitcoin relies on mining: this unnecessarily pollutes the environment, wherefore Tesla no longer accepts BTC. The Bitcoin price then plummeted, bringing the entire market down as well.
Bitcoin price — coindesk.com
For this reason, numerous other projects have specialized in solving these problems and want to function as an alternative.
Until now, Ethereum was considered the most important platform for smart contracts and applications of all kinds. However, as the number of users increases, so does the requirement to process all transactions on the blockchain. Even though various models for the future of the project have already been presented through Ethereum 2.0, the success and implementation of these approaches have not yet been guaranteed. Have a look at: Is There Still Some Potential Left? for more ETH2.0 insights.
Company & Team
The company behind the project Solana is headquartered in San Francisco and operates multiple offices in San Diego and Boulder. The goal of the company is to create an efficient solution for scalable applications. This should be able to handle a very high number of applications, as well as provide ease of use.
Solana team — coindesk.com
The Solana Foundation consists of a team that can look back on years of experience. The developers have already worked on well-known projects such as Dropbox, Apple, and Intel.
Anatoly Yakovenko — twitter.com
The founder of the Solana Foundation is Anatoly Yakovenko. He has already led projects in the development of operational systems at Qualcomm and distributive systems at Mesosphere. At Dropbox, he worked on the optimization for the compression of data. He also holds two patents for high-performance operating system protocols and is one of the developers of BREW. Greg Fitzgerald, Raj Gokal, and Eric Williams are also involved in leading positions.
The Solana Foundation is a not-for-profit organization operating in Geneva, Switzerland. Its mission is to build, support, and grow the Solana network and its community while driving mass adoption for blockchain. — solana.foundation
The Solana Blockchain is based on eight different innovations that fundamentally shape the project. It is an open-source project that publishes the programming code and makes it accessible to others. It was founded in January 2018 and the mainnet has already been online since March 2020.
The company’s goal is to develop the fastest one-layer solution for decentralized applications (dApps). So far, Ethereum is considered the blockchain of choice for most projects, but this is increasingly criticized due to a lack of scalability. Therefore, several competitors have already emerged, which are considered serious competition for Ethereum. The Solana Blockchain can score here with various technologies as an alternative.
Proof of History
To maintain a consensus in the network, participants need to align themselves with a common time. Proof of History (PoH) creates a protocol that can prove the occurrence of a specific event at a specific time. Thus, it is not the local time of the individual nodes being relevant, but the common database. Delays in the network do not harm the speed of the network, unlike in the Bitcoin blockchain, for example.
Sealevel allows smart contracts to operate in parallel. This allows the Solana Blockchain to be much more scalable. Other blockchains, such as EOS WASM, rely on a single smart contract that modifies the state.
Tower PFT is a proprietary implementation of PBFT (Practical Byzantine Fault Tolerance) and reduces latency. Here, the Proof of History serves as a common global time source in the network.
“Pipeline” allows the Solana Blockchain to process multiple data streams from different hardware devices simultaneously. By cleverly sequencing the individual flows, resource optimization takes place.
To achieve very high scalability, Solana relies on BitTorrent and UDP (User Datagram Protocol). This also increases security. With 50,000 transactions per second, the Solana Blockchain is one of the fastest. At the same time, costs of only 0.0001 US dollars per transaction are incurred.
Cloudbreak is the mechanism in the Solana Blockchain that eliminates the need for sharding. Horizontal scaling allows databases to be written to and read from in parallel without sacrificing speed.
Similar to other cryptocurrencies, the blockchain stores all requests first in a memory pool. They linger there until the request moves to the network for processing and the transaction takes place. While Bitcoin and Ethereum manage an average of 20,000 to 100,000 unconfirmed transactions in the memory pool, Solana can process them within seconds due to its high transaction speed.
Because blockchains need to process and store enormous amounts of data, many projects are reaching the limits of physical storage. Solana relies on its version of Proof of Replication, which Filecoin introduced in 2017. Here, data is stored in encrypted hash functions, which require significantly less storage. About 4 petabytes of data are generated annually by the Solana blockchain alone.
As already explained in “Polkadot $DOT: Will It Outperform Ethereum?”, the future of the internet is seen in decentralized apps and databases.
Web3 — hackernoon.com
While centralized applications often have a single authority determining the success of a venture, dApps can prevent many problems.
For example, governance can be handled by all participants, who are given voting rights through tokens. A project thus develops more according to the interests of the users and is less sensitive to wrong decisions by a single person.
Especially through Decentralized Finance (DeFi), a new sector has developed which enables financial transactions on the Blockchain. Through smart contracts, contracts occur digitally and without an intermediary, while still maintaining security.
Have a look at other ETH competitors, such as
With the growth of the Solana Blockchain comes a higher demand for the Solana Token.
The SOL Token is used on the network to pay for fees. The more applications there are on the Solana Blockchain, the higher the demand for the SOL Token rises. In addition, a proof of stake is used, which rewards holders of the token.
According to Explorer, the maximum circulating supply is 488,630,611 units, of which 274,100,000 are already on the open market.
Solana Chart — coinmarketcap.com
As Solana Inc’s focus is on very high scalability, the project has good chances. Fast performance is one of the most important criteria for the success of a blockchain. With 50,000 transactions per second, Solana is one of the best alternatives for Ethereum.
Investors also include some of the best-known capital providers in the field of cryptocurrencies, including CMCC Global, Foundation Capital, and Multicoin Capital. In addition to the idea, the development of the project also depends on financial resources. Since Solana Inc can rely on good investors, the future of the company is not at risk.
Solana is not a newcomer anymore, but a very serious contender to the blockchain ecosystem for Dapps of the future. Ethereum killer? I believe there will be room for more solid projects. And ETH is one of them.
I recommend crypto.com* (User friendly, allround service with credit card, high fees. Read here) or BitForex* (lower fees, classic trading platform) to purchase SOLANA.
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- Date of publication:
- Fri, 06/11/2021 - 04:38
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