What makes Solana unique in 7 days?

It rose by 17.22% in 24 hours, and the price doubled in the past seven days…Solana’s performance in the past period of time directly made Solana ( SOL ) jump to the sixth place in the global encryption rankings.

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(Price trend in the past 7 days)

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(Global encryption ranking)

Solana is a powerful open source project that uses the permission-free nature of blockchain technology to provide decentralized finance (DeFi) solutions. The Solana protocol aims to promote the creation of decentralized applications (DApps). It aims to improve scalability by introducing a combination of proof of history (PoH) consensus and blockchain’s underlying proof of stake (PoS) consensus. Committed to supporting Internet-scale blockchain applications. Although the idea and preliminary work for the project began in 2017, Solana was officially launched in March 2020 by the Solana Foundation, headquartered in Geneva, Switzerland.

Anatoly Yakovenko is the most important person behind Solana. He started his career at Qualcomm, where he was quickly promoted and became a senior engineer manager in 2015. He collaborated with his Qualcomm colleague Greg Fitzgerald, and they created a project called Solana Labs. In the process, more former Qualcomm colleagues were attracted, and the Solana protocol and SOL token were released to the public in 2020.

So what makes Solana different? An important innovation brought by Solana is the Proof of History (PoH) consensus developed by Anatoly Yakovenko. This concept allows the protocol to have greater scalability, thereby improving usability.

With lightning-fast processing speed, Solana has also attracted the interest of many organizations. For example, Goldman Sachs mentioned Solana many times in the June report “Digital Assets: Beauty Is Not in the Eye of the Beholder”. The report pointed out that Solana has brought improvements after its launch: it adds a proof-of-history algorithm in the verification process to effectively track the order of transactions, which is considered a major breakthrough in speed and capacity. The historical proof is a supplement to the proof-of-stake process and enables the validator to confirm each block more effectively. In addition, it allows validators to run thousands of smart contracts in parallel. In addition, Solana can process 50,000 transactions per second. At the same time, interoperability has been enhanced through its unique Ethereum bridge “wormhole”; although other interoperability solutions exist, such as those provided by Polkadot and Cosmos, Solana has developed its own interoperability features that allow Users take advantage of Solana’s speed while achieving interoperability. In addition, developers can use popular programming languages ​​on the Solana blockchain. Such as C/C++ or RIST. At the same time, the average transaction cost is very low.

It is worth mentioning that Solana’s performance has also attracted institutional investment. In the third week of August, SOL became the most popular digital asset for institutional investors because SOL investment products attracted more institutional investment than Bitcoin and Ethereum. Cardano founder Charles Hoskinson also tweeted complimenting Solana, saying that he was impressed with Solana’s recent performance and asked what he can learn from Solana.

Of course, the outbreak of Solana in the past period of time is inseparable from the craze of NFT. In August, the non-homogeneous token project Degenerate Ape Academy was launched on the Solana blockchain. With the launch of the NFT project, the price of SOL also rose rapidly. Degenerate Ape Academy released a total of 10,000 pictures. These unique cartoon apes pictures were sold out in just 8 minutes. The total transaction volume reached nearly 96,000 SOL (over 5.9 million US dollars).

In addition, in August Solana built a new NFT market Lollapalooza, which will include upcoming products from artists such as Steve Aoki. On August 10, BurntFinance, a decentralized auction protocol based on the Solana chain, announced that it will form a SolanaNFT alliance with multiple ecological projects to jointly promote common standards between Solana-based projects.

In terms of overall ecological development, Solana is the native token of the public blockchain Solana supported by Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX. There are now more than 400 projects in the Solana ecosystem, and they are still increasing. These projects include wallets, DEXs, loan agreements, mortgage platforms, digital games, storage solutions, meta universe platforms, and more. The gradual construction of the entire ecology continues to introduce vitality to the development of Solana. As of press time, Solana’s ecological growth rate has exceeded 13% on average.

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In June of this year, the Solana Foundation also launched a US$20 million fund in cooperation with ROK Capital, a large-scale blockchain accelerator in South Korea, aiming to develop the Solana blockchain ecosystem by helping various projects. Through cooperation with South Korean companies, the fund will also enable Solana to expand its local influence.

However, there are also market worries that Solana, which has exploded due to the NFT boom, is at risk of high valuation. It remains to be seen how Solana will continue to develop as the NFT cools down.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-makes-solana-unique-in-7-days/
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