Solana is a highly functional open source project that banks on blockchain technology’s permission less nature to provide decentralized finance (DeFi) solutions. While the idea and initial work on the project began in 2017, Solana was officially launched in March 2020 by the Solana Foundation with headquarters in Geneva, Switzerland.
The Solana protocol is designed to facilitate decentralized app (DApp) creation. It aims to improve scalability by introducing a proof-of-history (PoH) consensus combined with the underlying proof-of-stake (PoS) consensus of the blockchain.
Because of the innovative hybrid consensus model, Solana enjoys interest from small-time traders and institutional traders alike. A significant focus for the Solana Foundation is to make decentralized finance accessible on a larger scale.
Features of Solana
- Fast transfer
- Low fees
- Highly secure
- Delegated staking
- High liquidity
- Network with 50,000 transactions per second
Advantages of Solana
- Solana is also the most performant permission less blockchain where a network of 200 physically distinct nodes supports a throughput of more than 50,000 transactions per second.
- As a delegated staking blockchain, users gain some major advantages over the competition. For one, anyone can secure a passive income staking their SOL on the network
- With billions of users on board, Solana has achieved economies of scale and kept the application fees extremely low.
- Solana has achieved high levels of scalability by leveraging the Proof of History and several other breakthrough innovations.
Disadvantages of Solana
- Centralization still relatively high
- Even after so much success in recent time, there’s no clear roadmap yet
Solana is one of the most advanced blockchains in operation currently. The developers behind this project succeeded in creating a network that could surpass today’s payment processors in terms of tps and functionality. As such, you can expect to see more developers make the switch over to Solana as their original blockchains continue to suffer scalability concerns.
But surely it has a bright future ahead as it’s faster and cheaper.