Solana is an open-sourced public blockchain platform. It is a decentralized computing area that mainly uses its cryptocurrency token SOL for paying transactions. It is one of the fastest emergings and growing decentralized network ecosystems. The Solana Blockchain is a tough competitor of all other blockchain platforms because of its cryptocurrency SOL. It is the first largest cryptocurrency that promotes faster operations at a low cost. A team of network engineers built the Solana. Decentralized applications are the future of mass blockchain-based solutions.
Characteristics of Solana
It is a decentralized computing platform with SOL for paying secure transactions over the network. It is similar to all other blockchains, but some characteristics make it more efficient. It uses a programming language called rust, which the developers use to build applications. The Solana Blockchain platform is well known for its scalability feature because it processes over 50,000 transactions per second compared to others. This amount of speed is by the combination of Proof of Stake and Proof of History. These two are consensus algorithms. Proof of Stake is more beneficial to the network platform as compared to history.
Its native token – SOL
SOL is beneficial for paying transaction fees over the network, and also it supports the system. It also performs micropayments called lamports. The total supply of SOL is about 506 million. It ranks in the top cryptocurrencies and has more than $45 billion in market capitalization. As per the recent records, the exchange rate of Solana is US$157.
The De-Fi applications aim to recreate financial systems traditionally with the help of cryptocurrencies. Nowadays, these run on solanum cryptocurrencies. Decentralized finance came as an advantage to explore new platforms not only in banking but also in the whole domain of finance. By Decentralized financing, users can lend their currency and can earn interest as a lender. Another milestone is that Solana De-Fi projects crossed the $4 billion mark in the earlier months.
Reasons for Solano growth
The first reason is that the Solana network is backed up by the popular crypto exchange platform FTX. It releases several projects based on the Solana network. Additionally, more investors of Solana also provide backup for the FTX.
Another reason is that the transaction fee of Solana is less compared to other competitors in the present market. Solana is the third-largest in the case of TVL(Total Value Locked), that is the total value of the amount of the Solana projects. It has a total of $7.9 billion of project investments.