Solana

What is Solana (SOL)?

• High-performance blockchain supporting smart contracts and dApps.

• Uses proof-of-history (PoH) and proof-of-stake (PoS) for high throughput.

Tokenomics

• Uncapped maximum supply with disinflationary emission rate.

• Initial distribution for seed, founding, validator, strategic sales, public auction, team, foundation, and community reserve.

• Inflation starts at 8% and decreases by 15% yearly, stabilising at 1.5%.

Market Data

As of today #{today’s date}, the price of Solana is ₹20,668.41 INR or 238.39 USD, with a 24-hour trading volume of 7708853948.47 USD. The market capitalisation for Solana is 111948489383.77USD. The circulating supply is 472010395.83 Solana, with the total supply also being 588440157.06 Solana.

Pros and Cons

Pros:

• High transaction speed with the capability of processing up to 65,000 transactions per second (TPS).

• Low transaction fees, typically less than $0.01.

• High scalability without the need for Layer 2 solutions or sharding.

• A growing ecosystem with various dApps, DeFi platforms, and NFT marketplaces.

Cons:

• Criticised for not being decentralised enough.

• Expensive hardware requirements for staking SOL.

• History of network outages.

Why Should You Invest in the Coin?

• SOL offers high performance, low fees, and scalability.

• Rapidly growing ecosystem with strong developer and investor interest.

USP of the Coin

• High throughput and scalability at the base layer.

• Innovative PoH consensus mechanism enables fast validation.

Problem the Coin is Solving

• Addresses blockchain trilemma: scalability, security, decentralisation.

• Solves network congestion and high fees, offering an efficient platform for dApps and DeFi.

Founder and Team Background

• Solana was founded by Anatoly Yakovenko, a former Qualcomm executive.

• The team has a strong engineering and networking background.

ICO Price

• The public auction ICO price on 24th March 2020 is $0.22.

Risks Associated in Investing in the Coin

• Potential network outages, regulatory changes, and market volatility.

• Challenges in maintaining decentralisation and security with scaling.

Whitepaper Insights

The Solana whitepaper outlines a new blockchain architecture designed to facilitate high-speed and scalable decentralised applications and crypto-currencies. The core of Solana’s architecture is a proof-of-history (PoH) consensus combined with the blockchain's underlying proof-of-stake (PoS) consensus. Proof-of-history is a sequence of computations that verifies the passage of time between two events cryptographically. It uses a cryptographically secure function that ensures the output cannot be predicted from the input and must be executed entirely to generate the output. This allows Solana to create historical records that prove that an event has occurred at a specific moment in time, which is crucial for the trustless nature of the blockchain. The PoH consensus works alongside the PoS consensus mechanism, where validators stake their cryptocurrency as collateral for the chance to validate transactions and add new blocks to the blockchain. Validators are chosen based on the size of their stake and the current state of the network, ensuring decentralisation and security. Solana’s architecture allows for a high throughput of transactions, claiming to handle 65,000 TPS on its network. This is achieved through combining PoH and PoS and several other innovations such as the Gulf Stream, Turbine, Sealevel, Pipelining, Cloudbreak, Archivers, and more. These technologies work together to optimise the processing of transactions and smart contracts, reduce latency, and ensure a scalable network. The whitepaper also discusses the tokenomics of the SOL token, which is used to pay for transaction fees and staking. The SOL token has an inflationary supply with a decreasing inflation rate, designed to incentivise validators and stakers to secure the network. Solana’s goal is to provide a blockchain infrastructure that can support an ecosystem of dApps that require high-speed data and transaction processing, such as decentralised exchanges, automated market makers, and other DeFi applications. The whitepaper emphasises the importance of a scalable and efficient blockchain to meet the demands of modern internet applications and the future of decentralised finance. In summary, the Solana whitepaper presents a detailed and technical explanation of its blockchain architecture, consensus mechanisms, and the role of the SOL token within the ecosystem. It highlights the innovations that allow Solana to achieve high transaction speeds and scalability, positioning itself as a competitive platform for building and deploying decentralised applications and financial tools.