Solana is one of the most prominent blockchain networks in the world of cryptocurrencies, known for its high speed and low fees. If you are interested in understanding how the Solana network works, here is a breakdown of how it works:
---
1. Proof of Stake (PoS) with Proof of History (PoH)
Solana relies on a combination of two innovative mechanisms:
Proof of Stake (PoS): Validators participate in securing the network by staking SOL coins. Validators verify transactions and add new blocks.
Proof of History (PoH): This unique technology is what makes Solana so fast. The timeline of transactions is recorded on the blockchain in a sequential manner, making it easy to verify the chronological order of transactions without having to agree on every transaction.
---
2. High processing speed
Solana can process 65,000 transactions per second (TPS), making it much faster compared to networks like Ethereum.
This speed is supported by the use of PoH to reduce the need to wait on network compatibility.
---
3. Very low fees
Solana has very low transaction fees (typically less than $0.01), making it an ideal choice for decentralized applications (dApps) and microtransactions.
---
4. Applications and uses
Solana is used in many fields, such as decentralized finance (DeFi), non-fungible tokens (NFTs), and decentralized gaming applications.
It has an architecture that supports smart contracts, allowing advanced applications to be built on its network.
---
5. Challenges facing Solana
Partial centralization: Due to the limited number of validators compared to networks like Ethereum.
Technical failures: The network experienced downtime in some cases due to increased pressure or software errors.
Strong Competition: It faces stiff competition from networks like Ethereum, Polkadot, and Cardano.
---
If you are interested in investing in or using Solana, it is always advisable to keep up with technical developments and understand the risks associated with them.