The technology of blockchain is novel and exciting. The concept of decentralization introduced by blockchain has the potential to disrupt many industries. However, being new means there is a lot of exploration to be made. The blockchain technology has its problems which are being solved by various new cryptocurrencies that are created every other day. Solana is one such project that has the ambitious aim of solving three of the most notorious problems of the crypto space.
What is Solana?
Solana is an open-source project which utilizes the blockchain technology to provide decentralized finance solutions as efficiently as possible. The network was created by the Solana Foundation based in Switzerland back in 2017. The focus of the Solana Foundation is to make decentralized finance accessible to the masses by tackling the common problems faced by users of the technology.
What makes it unique?
Although the hallmark of cryptocurrencies is decentralization, efficient functioning with total decentralization is a hard feat to achieve which has led to many cryptocurrencies opting for partial decentralization. The change does not sit well with the crypto enthusiasts which are in the space for the uniqueness that cryptocurrencies have to offer.
The absence of a centralized authority leads to security concerns. Moreover, the 2021 bull run has made it evident that the crypto space is not ready for mass adoption. Ethereum – the queen of the market – suffered from network congestion which resulted in phenomenally-high gas fees on the network. The lack of scalability is another major problem facing the crypto space.
Solana aims to solve these three problems – scalability, security and decentralization – with its design and mechanism. In terms of speed, Solana plans to surpass Visa. It currently processes 50,000 transactions per second and produces a new block per 400 milliseconds with 200 validating nodes. Solana’s innovative Proof-of-History consensus mechanism helps it achieve the lightning-fast speed it has along with the established Proof-of-Stake mechanism.
Solana stands at a price level of $41. The price of the cryptocurrency has surged upwards by 12% in the past seven days while the daily performance shows a decline of 4%. In the short timeframe, SOL token has been suffering from bearish momentum with high volatility but that can be accounted to the overall market sentiment of the crypto market. The market has been bearish as of large and with the king and the queen of the market suffering, altcoins usually move in tandem with them.
SOL token started off the year with a price level of $1.51 and reached towards its all-time high of $55 during the peak of the 2022 bull run – a gain of more than 3,500%. Solana is one of the top fifteen largest cryptocurrencies in the market. It has a market capitalization of $11 billion.
Apart from the fundamentals, the technicals of the cryptocurrency are also strong in the long-term. Digital Coin Price predicts the price of the cryptocurrency to reach $143 by 2026 while Wallet Investor’s projections place SOL token at $300 in five years.
