đ Solana Basics:âThe High-Speed Blockchain, Explained
If you've been following the crypto markets at all this year, you've likely heard of Solana â which has quickly become one ofâthe most popular Layer 1 blockchains out there. SolanaWith its speed-of-light transactions, ultra-low fees, and developer-friendly nature, Solana is storming the world of dApps, NFTs, DeFi,âand beyond.
In this article we dissectâthe core principles that make Solana ($SOL ) stand out â and why you should care.
đ§ 1. What Is Solana?
Solana is a fast andâperformant blockchain designed for ultra-high-performance dApps. It aims toâsolve the trilemma of blockchain with the below features: PVU launched in 2020 and provides:
Speed âĄď¸: Process 65,000+ transactions perâsecond (TPS)
đ¸ Cost-efficiency: The average cost per transaction isâ< $0.01
Decentralization đ§Š: Networkâis made of thousands of validators
At the center of Solanaâs new technology is its novel Proof of History (PoH) consensus, that timestamps transactionsâto strengthen efficiency and order.
đ 2. Solana Ecosystem
Innovationâin booming in the Solana ecosystem:
DeFiâProjects: Jupiter, Drift Protocol and MarginFi
NFT Marketplaces:âTengible, Magic Eden
Gaming & Metaverse:âStar Atlas, AuroryâFor both Gaming and metaverse there are two important use-cases in our view.
Payment Solutions: Solana Pay
With Solanaâs fast finalityâtoo, where transactions confirm in less than a second, real time applications are a natural fit.
đ 3. $SOL Token Use Cases
The Solana network isâpowered by its native token $SOL though:
Transaction Fees
Staking & Delegation
Governance (upcoming)
Use cases in dAppsâ(DeFi, NFTs, etc.)