Over the past several years, cryptocurrencies have become increasingly popular. There were over 16,00 cryptocurrencies in 2018, which has increased multiple times as of 2022 and is growing constantly. Crypto enthusiasts around the world are exploring different cryptocurrencies to leverage the exponential potential of digital currency and earn profit. However, the availability of a number of cryptocurrencies and blockchain platforms makes it difficult for investors to choose a perfect cryptocurrency and blockchain. In this article, we will shed a light on one of such cryptocurrencies, Solana, and will shed light on some of the interesting and important aspects of Solana crypto.
<h2>What is Solana?</h2>
Known for its remarkable speed and performance, Solana is a third-generation blockchain platform that supports the functioning of cryptocurrencies, decentralized applications, <a href="https://www.cryptoknowmics.com/news/what-makes-decentralized-finance-the-biggest-thing-in-the-world/">decentralized finance</a> (DeFi) platforms, Web3 projects, and nonfungible token (NFT) marketplaces. It was launched in 2017 through an initial coin offering (ICO). It is often referred to as the “Ethereum killer” due to its similarities with Ethereum.

Created by Anatoly Yakovenko, a former executive at Qualcomm, in 2017, the Solana blockchain can process over 65,000 transactions per second (TPS), with an average cost per transaction of $0.00025.

Yakovenko, a former software engineer at Qualcomm, Mesosphere, and Dropbox, worked with Greg Fitzgerald, Stephen Akridge, and Raj Gokal to develop the blockchain.

It uses the proof-of-history (PoH) algorithm, a version of proof-of-stake (PoS), to mine Solana crypto, and execute and verify transactions. It is based on the cryptographic technology 256-bit secure hash algorithm (SHA-256). Due to exceptional speed and efficiency, it is seen as a long-term rival of the Ethereum block.

Solana ecosystem can be used for:
<ul>
 	<li>Developing decentralized finance (DeFi) platforms, such as decentralized crypto exchanges</li>
 	<li>Minting, selling, and trading non-fungible tokens (NFTs).</li>
 	<li>Developing blockchain games, including Web3 games</li>
</ul>
<h3>Solana (SOL) Token</h3>
Launched in March 2020, <a href="https://coinmarketcap.com/currencies/solana/" target="_blank" rel="noopener">SOL</a> is the native cryptocurrency token of the Solana blockchain, which is used to make digital payments for transactions on the Solana platform and fund transfers. It can be used to transfer between nodes and the Solana cluster in exchange for running applications on the blockchain.

It is one of the top 10 cryptocurrencies in terms of market capitalization. Out of a total of 511 million SOL tokens to be released, presently there are 348 million tokens in circulation. Solana’s founders and the Solana Foundation owns around 60%, while 38% is reserved for the public.

A lawsuit was filed against Solana on July 1, 2022, accusing it of selling unregistered securities tokens in the form of Solana (SOL) and misleading investors concerning the total circulating supply of SOL tokens.
<h3>Solana Pay</h3>
It is an open and free-to-use payment framework that enables merchants to receive payments directly from the customers. The next-generation payment platform allows users to pay in real-time in SOL, and USD Coin and supports nonfungible tokens (NFTs) and Web3.
<h3>Solana Projects</h3>
Solana is the biggest competitor of Ethereum in terms of speed, performance, and scale. As of now, it has more than 5100 projects, some of which are mentioned below:
<ul>
 	<li>Solana worked with FTX, a crypto exchange to build Serum, a high-speed, decentralized crypto exchange on Solana's blockchain.</li>
 	<li>Michael Jordan launched his NFT collection on HEIR, based on a Solana-based platform.</li>
 	<li>Former First Lady of the United States Melania Trump on 16 December 2021 announced the use of Solana to launch a <a href="https://www.cryptoknowmics.com/news/getty-images-announced-to-launch-non-fungible-token/" target="_blank" rel="noopener">non-fungible token</a> (NFT).</li>
 	<li>Solana-based NFTs are now listed by NFT marketplace OpenSea.</li>
 	<li>Decentralized music community app Audius is built on Solana.</li>
 	<li>Solana has partnered with Arweave blockchain to store large amounts of data.</li>
 	<li>In 2022, one of the world's most famous music festivals, Coachella announced plans to build an NFT collection using Solana.</li>
</ul>
<h2>How Does Solana Work?</h2>
Most blockchain platforms use a proof-of-work or <a href="https://www.cryptoknowmics.com/news/proof-of-stake-ethereum-bringing-more-centralization/">proof-of-stake</a> consensus mechanism to execute and validate transactions. But the hybrid protocol of a combination of proof-of-stake and proof-of-history is used to mine Solana crypto, which ensures fast processing of transactions.

Proof of stake is a way to validate blockchain transactions, in which validators receive rewards when they confirm transactions and add new blocks to the blockchain
<h3>Proof of History</h3>
Proof of history is used to validate the order of blockchain transactions and the

passage of time between them. Current blockchain infrastructure relies on a sequential production of blocks which lacks speed and capacity. Solana uses a proof-of-history consensus protocol that provides cryptographic proof of order and time of transactions in the historical record. Some advantages of proof of history:
<ul>
 	<li>It reduces latency in transaction validation.</li>
 	<li>Increases throughput.</li>
 	<li>Ensure scalability, security, and speed.</li>
 	<li>Creates a historical record to prove at what specific time a transaction has occurred.</li>
 	<li>It saves a lot of energy, resources, environmental, and monetary costs used in mining.</li>
</ul>
<h3>Robust Security</h3>
Solana has advanced security features as compared to Ethereum. Proof of history algorithm provides an extra layer of security to ensure secure processing of transactions swiftly by timestamping each block while validating transactions.
<h3>Where to Buy Solana Token:</h3>
You can create an account by signing up on any of the crypto exchange platforms to start buying Solana. You can buy Solana cryptocurrency on most of the popular exchanges such as:
<ul>
 	<li>Coinbase</li>
 	<li>Kraken</li>
 	<li>eToro</li>
 	<li>FTX</li>
 	<li>Binance</li>
 	<li>com</li>
 	<li>BitMax</li>
</ul>
Following are the Exchanges where you can stake Solana:
<ul>
 	<li>Binance</li>
 	<li>Kraken</li>
 	<li>FTX</li>
 	<li>com</li>
</ul>
Following are the wallets where you can stake Solana:
<ul>
 	<li>SolFlare</li>
 	<li>Sollet Phantom Wallet</li>
 	<li>Math Wallet</li>
 	<li>Atomic Wallet</li>
 	<li>Exodus Wallet</li>
 	<li>Zelcore</li>
</ul>
<h2>Conclusion</h2>
With its unmatched speed, efficiency, and low costs, Solana has emerged as a rival cryptocurrency blockchain and decentralized apps platform, Ethereum. Since cryptocurrencies are highly volatile and extremely risky investment options, investors should put their hard-earned money only after ensuring the credibility of the platform and their loss-bearing capacity.

What is Solana? SOL Cryptocurrency Future Prospects

Known what is Solana? How to mine Solana crypto and what is SOL cryptocurrency's future prospects. Buy Solana to grow your investment quickly.

Sanjay Shukla is a Content Writer with Cryptoknowmics, India's biggest media platform in crypto. He has more than 8 years of experience in the Business and Finance domains. Sanjay writes excellent content on cryptocurrencies, trading, Bitcoin, and the share market, to help the readers have deep insight into the topic.

What is Solana? SOL Cryptocurrency Future Prospects

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