Solana (SOL) is a digital currency and blockchain project known for its high speed and low costs. It is designed to be a platform that supports decentralized applications (DApps) and smart contracts, making it a strong competitor to networks like Ethereum.
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🔹 What is Solana currency?
SOL is the native currency of the Solana network.
Used to pay transaction fees on the network, as well as in staking operations to secure the network and earn rewards.
Ranked among the top 10 cryptocurrencies by market capitalization.
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🔹 How does Solana work?
Solana relies on a unique mechanism called:
⏱️ "Proof of History" (PoH)
In addition to:
🧠 "Proof of Stake" (PoS)
💡 Proof of History (PoH):
It is a method to timestamp events in an encrypted manner, ensuring the order of events without long waiting times as in other systems. This is what makes the network very fast.
🔐 Proof of Stake (PoS):
Used to collect coins and confirm transactions more efficiently than "Proof of Work" as in Bitcoin.
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🔹 Features of Solana:
Feature: Clarification
🚀 High speed: Processes over 65,000 transactions per second.
💸 Low fees: Network fees are usually less than $0.01.
🧱 Smart contract support: Used in DeFi applications, NFTs, and games.
🌐 Strong decentralization: Thousands of nodes are used to secure the network.
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🔹 Uses of Solana:
Trading the SOL currency.
Creating and selling NFTs (like on the Magic Eden platform).
Building decentralized applications DeFi (like Serum, Raydium).
Blockchain-based games.
Staking for profits.
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🔹 Disadvantages or challenges of Solana
Previously experienced network downtimes.
The quality of decentralization is slightly lower compared to networks like Ethereum.
Fierce competition from other platforms.
