Last updated on September 1st, 2023 at 10:42 am
The founder of Solana (SOL) claims that his project has achieved a breakthrough due to “8 key innovations.” His work with proof-of-stake and time stamping is a bona fide technological achievement. In addition, Solana’s implementation of Tower Consensus enforces a globally consistent source of time on the blockchain. Solana’s Proof of History protocol also provides a chronology of past events on the blockchain.
Despite being a relatively new project, Solana’s technical excellence has already been acknowledged. It has handled several multiples of the volume of Bitcoin and Ethereum, averaging over 2,000 TPS. It means that Solana can handle increased traffic, while it’s incredibly low transaction fees enable it to reap the benefits of its growth. Its strength has also been recognized by many in the cryptocurrency community, with some comparing it to gold.
The core of Solana’s technical excellence is its focus on decentralization and optimised communication between nodes. Other major blockchains can’t come close to achieving these attributes. The Solana team honed its technologies to achieve these goals. Here are key technologies that Solana uses to accomplish this. It works with a permissionless network to make the most of each of these technologies.
Partnerships
The first half of 2021 saw a modest $2.5 billion in NFT transaction volume, but a recent resurgence has produced even higher peaks. OpenSea, the leading NFT marketplace, registered $3.4 billion in volume in August and is on track to break that record in September. One of the most popular projects of late, Bored Ape Yacht Club, has generated more than $700 million in total trading volume since its April debut.
The challenge of mining NFTs lies in the computing power required to create a block. Blocks are created every 12 seconds and require significant computing power to process. Consistent block creation is essential for making Ethereum tamper-proof and NFT-ready. The more blocks, the more secure the chain will be. This is important for the future of the crypto market, where a single block can have hundreds of thousands of value.
Solana (SOL) implementation of Tower Consensus
Solana is a blockchain project trying to challenge Ethereum as the go-to blockchain for decentralized applications. Founded by former executives of Qualcomm, the project has seen some recent success. However, it is worth noting that the crypto world is littered with so-called “Ethereum killers.” While most of these are simply stunts, Solana is a serious contender.
Since the start of this year, Solana has been gaining on Ethereum in terms of volume. In the first quarter of 2022, Solana raked in $700 million in secondary sales, which falls far short of Avalanche’s 551 percent growth rate. Solana’s volume is also lower than Polygon’s, despite being integrated with the OpenSea network just this month.
Ethereum continues to lead the smart contract space, but Solana is gaining on it and claiming market share. Solana has gained millions of new users and expanded the NFTs market. While Ethereum still leads in volume, Solana projects continue to break records and are poised to take the crown. Here are some of the things you should know about Solana.
While Ethereum maintains its NFT crown, Solana has quickly gathered momentum, and the company hopes to be a serious contender shortly. Solana has increased its technology, products, partnerships, and intangible quality known as the SBF factor. The company also plans to introduce an exclusive marketplace. This could make Solana a serious competitor to Ethereum.
Solana (SOL) interoperability with Ethereum (ETH)
Despite their similarity in terminology, both blockchains are different in many ways. Ethereum uses an EVM runtime that is single-threaded, meaning that smart contracts change the blockchain state one at a time. On the other hand, Solana uses a parallel smart contract runtime called Sealevel. This implementation allows Solana to process tens of thousands of smart contracts simultaneously, making it a highly scalable blockchain.
Final Words
Solana (SOL) is designed to address the significant limitations of Ethereum. It can process more than 65,000 transactions per second. Solana’s recent price is regularly updated on https://bitcoinsmarter.org/. It is significant for any blockchain platform, as payment systems require faster speed. While the latter cannot boast that level of composability, Solana is already ahead of Ethereum in several other ways. The future of Solana is bright. This decentralized blockchain will likely rival Ethereum in speed, security, and cost.
