What is this cryptocurrency, how does it work?
Solana’s network has a high bandwidth. The SOL blockchain can carry out up to 710 thousand operations per second (for comparison, VISA only supports 65 thousand operations per second). At the same time, commissions on the network are minimal, and the cryptocurrency is completely decentralized. Now the SOL transaction fee Australian Dollar Token to Solana is about $ 1 for every $ 100,000 transfers. Solana’s development strategy provides for an even greater increase in the speed of transfers without increasing commissions.
It is the Proof of History algorithm that allows the project to maintain the number of transactions. An important technology is that most networks spend time and resources synchronizing transaction times between network nodes. The creators of SOL have implemented a centralized clock by which all nodes can be checked without wasting resources.
Also, the high throughput of Solana is provided by the Turbine protocol. Its essence lies in the fact that each node (node) does not send information to the entire network, but shares information only with neighbors, and they, in turn, with their neighbors. Smart contracts are launched using the Sealevel protocol.
The history of the emergence of SOL
Solana cryptocurrency appeared at the end of 2017. Her idea was conceived and implemented by former engineers at Qualcomm, Intel and Dropbox. Anatoly Yakovenko, a native of Russia, became the founder and executive director of the project. Also contributing to the development were Greg Fitzgerald, Stephen Akridge and Raj Gokal.
Features of the Solana project
The development of SOL followed an unprecedented path. While other ecosystems created new levels in their blockchains, Solana developed one level. This level lowers the cost of entering the ecosystem and ensures ease of operation. In addition, this approach allows Solana to maintain compatibility with other peer and Ethereum-based systems.
The Solana blockchain is very attractive to developers. Firstly, the system itself allows you to write applications inside it, and not on third-party resources. This ensures consistency and ease of development. Secondly, the system uses the very popular Rust programming language. As a result, developers do not need additional knowledge to work at SOL.
Blockchain and the real world
In the real world, people use the yardstick in the form of fiat currency, but the blockchain does not understand what the euro or the dollar is, it has its own metrics – block sizes, number of transactions, hash rate, explained the founder of the Stasis stable cryptocurrency platform Grigory Klumov. According to him, stablecoins were created to bring the blockchain closer to the world of people and make on its basis an asset that can be perceived as a unit of measurement of value.
In addition to being pegged to fiat currencies, stablecoins can be pegged to precious metals, natural resources, securities, real estate and other physical assets, said Artem Deev, head of the analytical department at crypto exchange rankings. Due to this, stablecoins have less volatility.