About Solana

The Solana price is $20.34, a change of -0.20% over the past 24 hours as of 6:22 a.m. The recent price action in Solana left the tokens market capitalization at $8,301,802,993.87. So far this year, Solana has a change of 105.19%. Solana is classified as a Smart Contract Platform under CoinDesks Digital Asset Classification Standard (DACS).

SOL is the native cryptocurrency of the Solana blockchain, a platform that has fast transaction times and inexpensive fees.

What is Solana?

Solana is a blockchain platform designed to facilitate decentralized app (dApp) development and support crypto-currency transactions. What sets Solana apart is its hybrid protocol system and unique timestamp technology, which is centered around a mechanism called Proof-of-History (PoH). This system creates a verifiable and secure timestamp for each transaction, which allows nodes to process transactions without needing to communicate with one another, significantly speeding up the transaction processing time.

Solana utilizes a unique model, where PoH works in tandem with a Proof-of-Stake (PoS) consensus mechanism. PoH allows for the recording of the order of events and the time that has passed between them, which mitigates the need for traditional consensus-building processes. The PoS mechanism then finalizes these transactions and secures the network by allowing validators with a stake (investment) in the system to propose and vote on the validity of new blocks.

"The goal of Solana is to carry transactions as fast as news travels around the world," according to Anatoly Yakovenko, the co-founder and CEO of Solana Labs. With its architectural design, Solana has the capability to handle thousands of transactions per second, positioning it among the faster blockchain networks. This focus on transaction speed is in line with Yakovenko's stated vision for the blockchain. In addition, Solana's fee model, which emphasizes lower transaction costs, may be seen as an appealing feature for both businesses and individual users.

Solana price

SOL is used in two ways:

  • Pay for transaction fees: Though Solana's fees are supposed to be cheaper than those of other cryptocurrencies, it still charges a fee to send transactions or run smart contracts, the blockchain-based computer programs that cut out intermediaries from digital transactions. Smart contracts are the building blocks of more complicated apps on Solana, such as finance apps or apps for music streaming.
  • Staking: Like many other blockchains, Solana is secured through a consensus mechanism. People who want to help secure the cryptocurrency by being a "validator," can "stake" some of their SOL, or lock it up to secure the network and earn money while doing so.

Solana is an inflationary cryptocurrency with no hard cap on the total number of tokens. It has a starting annual inflation rate of 8%, which will decrease by 15% every year until it reaches 1.5%, which will be the fixed long-term rate.

Thirty-seven percent of the SOL tokens that were initially distributed went to investors, 25% was split between Solana's team and the Solana Foundation, the nonprofit steering development of the cryptocurrency, and 38% was sent to Solana Foundation's community fund reserve.

After the launch of SOL in March 2020, SOL's price bounced between $0.50 and $1.50 for the rest of the year. Then, SOL became one of the top-performing assets amid the crypto bull run in 2021, as its price hit $55.91 by May 2021. Though it dipped to as low as $23.49 in July 2021, SOL's price surged again in the second half of the year, hitting its all-time high of $258.93 in November 2021.'

How does Solana differ from other blockchains?

  1. Proof of History (PoH): Unlike traditional blockchains that use mechanisms like Proof of Work (PoW) or Proof of Stake (PoS) alone, Solana introduces a novel timestamp system called Proof of History. This system allows for greater efficiency and speed as it creates a historical record of all transactions, allowing the system to trust the timing and ordering of events without additional verification.
  2. Performance and Scalability: Solana can handle up to 65,000 transactions per second, which is substantially higher than many other blockchains. This scalability comes from Solana's unique architecture, including its PoH mechanism and its usage of concurrent processing and pipelining processes.
  3. Hybrid Consensus Model: Solana uses a hybrid consensus model that combines PoH and PoS. PoH provides a unique, decentralized clock for the system, while PoS ensures security and provides a mechanism for selecting the next leader in the network.
  4. Advanced Technologies: Solana incorporates various high-performance computing technologies, like GPU processing, parallel processing, and more. These technologies allow Solana to process transactions and smart contracts faster and more efficiently.

Solana NFTs

The Solana blockchain is known for its high-throughput and scalable infrastructure, making it an option for Non-Fungible Tokens (NFTs) creation and trading. With the capability to handle high-speed and low-cost transactions, Solana has become a platform where NFT artists, collectors, and developers can operate. NFTs on Solana are represented as unique digital assets with distinct ownership and metadata. This enables the representation of various digital artifacts like art, music, and virtual real estate. Solana's relationship with NFTs represents an intersection between emerging blockchain technology and the growing field of digital assets, though the platform's suitability may vary based on individual needs and preferences.

Solana has emerged as a competitive player in the NFT market, holding a strong position among various blockchains. According to data from CryptoSlam, as of April 2023, Solana ranks third in key metrics such as sales, number of buyers and number of sellers. With total NFT sales amounting to over $4.13 billion, Solana's performance is notably competitive with leading blockchains like Ronin and Flow, although significantly behind Ethereum, the market leader.

How to buy Solana

Solana (SOL) can be securely purchased on a variety of popular and reputable cryptocurrency exchanges, including Binance, Coinbase and Kraken. Before purchasing, ensure that you have set up a secure digital wallet that supports Solana to store your tokens. When selecting an exchange, it's important to consider factors such as security measures, user-friendliness, transaction fees, and customer service. Always perform thorough research and consider using two-factor authentication to add an extra layer of security to your account. Remember to transfer your SOL tokens to your secure wallet rather than leaving them on the exchange after purchase.

Key events and management

Solana was founded by software engineer Anatoly Yakovenko in 2017 and after three years of development, the platform and token were launched.

Solana's investors include Multicoin Capital, Distributed Global, BlockTower Capital, Foundation Capital, Blockchange Ventures, Slow Ventures, NEO Global Capital, Passport Capital and Rockaway Ventures.

In August 2022, CoinDesk reported Ian Macalinao, the chief architect of Solana's once mighty stablecoin exchange Saber, hid behind anonymous developer accounts to pump billions of dollars into his DeFi empire.

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