Solana (SOL) is a relatively new cryptocurrency that has not attracted much attention until recently. And with so many new types of cryptocurrencies hitting the market, it’s hard to blame investors for missing out. But Solana is now in the spotlight of most crypto traders. You can see all the necessary information about Solana at https://cryptotracker.com/price/solana.
All in all, Solana is a platform built on a blockchain network that allows users to create decentralized applications. In this respect, it is similar to Ethereum.
How Solana works?
Solana uses a Proof-of-Stake blockchain system – as opposed to Bitcoin’s Proof-of-Work model – to validate and secure its network. The main goals of the network:
- process smart contracts;
- further transaction facilitation involving native SOL cryptocurrency and other assets such as fungible tokens (NFTs).
This blockchain is fast and secure, thanks in part to its special “proof of history” concept, which makes it attractive to those working in the crypto space.
History of Cryptocurrency
Solana dates back to November 2017, when founder Anatoly Yakovenko published an article describing the concept of “proof of history” in which each transaction is time stamped, so they are recorded on the blockchain in chronological order.
Next, Yakovenko and his colleagues Greg Fitzgerald and Stephen Akridge launched a prototype project, originally called Loom. It was soon renamed Solana, after the small town in California where the three men lived for several years. From there, the project grew and found funding, and in a few years it became one of the most famous blockchain networks and cryptocurrencies.
SOL has been a small player in the market for some time. But that changed in the late summer of 2021 when SOL was around $44 but peaked at almost $215 by September 8th (up about 489%). However, shortly thereafter, it declined slightly.
Solana coin value
As of November 2022, SOL’s price is hovering around $14 and the market capitalization is approximately $5 billion. At the same time, back in 2021, the cost reached $200, and even higher. This price spike is one of the reasons Solana has become a household name for crypto investors.
Solana is faster and cheaper to use than the competition, including Ethereum. Solana can process more transactions, making this process much faster than the same Ethereum. Solana’s history verification feature plays a big role in accelerating consensus on the blockchain. The proof of history acts as a kind of clock that creates timestamps and speeds up transactions to be recorded on the blockchain.
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