What is Solana?
Solana is a blockchain network where developers can build apps that provide goods and services online. It’s at the forefront of ‘Web3’, a vision of an internet where the control is spread out among its users, rather than dominated by a handful of Big Tech companies.
The SOL coin is a cryptocurrency that was created by Solana and which runs on the Solana blockchain. It can be used as a transfer of value and it gives holders certain rights to vote on how the network is run.
How does Solana work?
Solana works by using a blockchain to track and store transactions. Rather than a centralised authority like a bank, each new transaction is approved by other users. This is known as Proof of Stake and is how Ethereum now works as well.
However, there is a twist that helps Solana approve transactions much faster than Ethereum, and speeds the whole network up. Rather than all the validators having to agree on a set of facts before a transaction can be processed, Solana uses a process called Proof of History that timestamps each transaction, so that all each validator has to do is monitor the process.
The combination of Proof of Stake and Proof of History allows Solana to process significantly more transactions per second than Ethereum. This is a key part of solving the ‘Blockchain Trilemma’, the quest to create a blockchain that is decentralised, secure, and scalable enough to achieve mainstream use.
How is the Solana network secured?
Solana is secured by a consensus mechanism that combines the features of Proof of Stake with Proof of History. Proof of History is the main component, which records and time stamps each transaction.
What is Solana used for?
SOL can be used to buy and sell goods on the Solana network or it can be ‘staked’ – a form of interest that’s available on some crypto coins. It can also be used simply as a means of speculation.
Why does SOL have value?
The main reason is that the Solana network is unique, in the way it’s designed and can offer much faster speeds than other blockchains. This gives it an advantage over other platforms as a place for Web3 developers to build apps, because these apps can cope with higher volumes of traffic than those built elsewhere.
Who created Solana?
Anatoly Yakovenko is the man who came up with the idea for a Proof of History blockchain and he is the key figure behind Solana. He originally wrote the code for what became Solana, and later partnered with Greg Fitzgerald and Stephen Akridge to develop the project.
Initially known as Loom, they renamed it Solana in 2018 and released the blockchain and SOL coin in 2020.
Is Solana better than Ethereum?
Beauty is in the eye of the beholder; Solana is faster than Ethereum and has lower ‘gas’ (transaction) fees. However, it has been plagued by technical issues which has led to the blockchain going down multiple times. Ethereum, meanwhile, has just upgraded its tech through the ‘Merge’.
Where can I buy Solana?
Are there any other ways to invest in Solana?
The simplest way to invest in Solana is to buy it outright. However, another option is to simply open a crypto account. Crypto accounts are like regular bank accounts and allow you to store a variety of currencies, send and receive payments, earn interest on savings, and spend freely with a credit card.
You can also invest in crypto more generally through a crypto ETF or a crypto fund. These are financial instruments that give you exposure to a group of leading cryptocurrencies, more suited to high net worth individuals.
More about the SOL price
What is the Solana price today?
The SOL price is currently $33.65, as of October 5, 2022. The price of Solana is down 78.16% over the last year. You can use the live Solana chart to track the SOL/USD price in real time above, or compare the Solana value today to its past performance using the Solana price history tab at the top of this page.
What is the price prediction for Solana?
The average Solana price prediction values the coin at $3,000 by the end of 2025. Things like the economic climate, establishment support and acceptance, and the crypto market as a whole can all have an impact on the price.
It’s best to take predictions with a grain of salt but you can use expert estimates to help you understand the weight of opinion about a coin. Read our latest Solana price prediction for more analysis and guidance.
What is the total supply of SOL?
The circulating supply is 355,217,571 SOL, out of a total maximum supply of 511,616,946 SOL.
Are there any Solana alternatives?
Yes, there are lots of blockchains that want to lead the charge into Web3. Solana is just one of many, locked in competition to be the big dog. Here are some alternatives to Solana:
- Ethereum. Ethereum is the original smart contract blockchain.
- Cardano. Cardano is a blockchain network based on peer-to-peer research.
- Polkadot. Polkadot builds blockchain bridges that can talk to other networks.
More crypto guides
Solana is a safe and secure blockchain, although we always recommend you store any coins you own in a crypto wallet. Preferably, a custodial wallet; one where you are the only one with access to the private key, as opposed to leaving coins on an exchange where your money would be vulnerable were the exchange to suffer a breach.
Yes, a number of Solana wallets were attacked in August 2022 and drained of their funds. This hack only affected ‘hot’ wallets – wallets connected to the internet and may have been caused by a flaw in the wallets’ code or software.
Solana has experienced fairly frequent bouts of downtime, where network outages lead to a freeze on all transactions. You can track the status of Solana now on Twitter at twitter.com/solanastatus.
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