Solana blockchain has been a trending technology in recent times. The popularity of Solana has been rising over the past few years. It can be clearly understood from several entrepreneurs engaging with this technology and implementing it in their businesses to make the most use of it. Moreover, business owners are looking forward to hiring top-notch Solana blockchain development services to implement the technology in their business in the right way.
Origin of Solana Blockchain
Solana is believed to have been initiated in the year 2017 by Anatoly Yakovenko, who wrote a whitepaper on timekeeping techniques that conceptualized distributed systems which are referred to as PoH or Proof of History. Proof of history aims to eliminate the problems of scalability and time needed to attain the consensus on different transaction orders. Finally, the official launch of Solana took place in April 2020. For the purpose of scaling up the transaction ordering process in the blockchain, proof of history happened to be an innovative technique that played a significant role in easily automating the networks.
What is Solana Blockchain?
Solana is an extremely high-performing blockchain that comes with smart contract functionality. It helps support builders globally to create crypto applications that scale today. SOL happens to be the native cryptocurrency of the Solana blockchain. It is a medium of supersonic transaction that has uncompromised blockchain qualities with cryptocurrency potential or executing 50,000 transactions per second. Experts consider Solana to be the next-gen blockchain to bring about an increase in the following in industry-leading transaction speeds as well as enterprise-level security on the blockchain network.
Any professional Solana blockchain development company has the potential to make the best use of the technology and leverage its benefits for business.
SOL – The Native Cryptocurrency of Solana Blockchain
The native currency and utility token of the Solana network is SOL which is pretty astonishing in nature. SOL is used for the purpose of developing a smart contract platform for easy facilitation of settlement as well as payment of gas fees. The performance of SOL in micropayments is referred to as lamports which comes across about 489 million supplies.
Moreover, SOL also has additional use cases for staking the token for the purpose of earning extra rewards. It is precisely the reason why staking has been one of the best ways for users to generate profit when they hold their tokens. A few of the staking processes are listed below.
- Users need to transfer tokens to their crypto wallets for the purpose of supporting staking.
- Users require to create a staking account individually
- It is essential for users to choose a validator from the validators of Solana
- Users can begin delegating their stake to the validator
Understanding the Workflow of Solana
Solana belongs to the third-generation Proof of Stake blockchain, possessing a very high-performance permissionless system which has the capability to determine the time of a transaction, known as Proof of History. The vital range of transactions can also be tracked with ease. When Solana is run with GPUs, there are a total of 200 distinct nodes that are able to generate a throughput of about 50,000 transactions per second in the network. The Solana blockchain network is able to accomplish high transactions per second because of its unique consensus architecture. The workflow of the Solana blockchain is denoted by the following steps.
- The workflow of the Solana blockchain network starts with sending the input of transactions to the leader.
- Each of the sequences of messages as well as orders is efficiently recorded so that the leaders can be easily processed by other nodes.
- Once the transactions are executed by the leader, the present state gets stored in the RAM.
- Then the leader publishes the transactions and signs the final state to the Verifiers.
- In the next step, the copies of the same transaction of the state are executed by the verifiers, and then the signatures of the state are published once the confirmation is received.
- In the last step, all are published, and the confirmations for the same act as votes for the consensus algorithm.
Why is the Solana Blockchain Network Unique?
Solana is unique in the following ways:
- Built to Scale – Solana blockchain helps speed up the present volume of transactions, more than 50,000 transactions per second, whereas Ethereum and Bitcoin are able to handle only 15 & 5 transactions per second, respectively.
- Superiorly Low Fees – Solana has superiorly low fees as compared to all the other blockchain networks in use at present.
- Growth of Ecosystem – The ecosystem of the Solana blockchain is growing at a very good pace and, at the same time, has been gaining a lot of popularity.
Solana, with its numerous advantages of high scalability, increased velocity, highly improved transactions per second, low fees, and great potential for further development as well as widespread adoption, is all set to become the future of the crypto world. The opportunities for a premium Solana development company will certainly boom with the rising demand for the Solana development services.