The Solana blockchain network has been quietly making waves by enabling online businesses to make sales and purchases online with crypto. Thanks to Solana’s innovative blockchain solutions, merchants can now enjoy instant payouts, without waiting days or even weeks for funds to settle in their bank accounts. Launched in the spring of 2020, its native token, SOL (CRYPTO:SOL), is one of the Top 15 coins on the charts. As more companies start using its network, investors who get in on Solana now stand a better chance of striking gold in the future.
Real utility for real businesses
Solana is a blockchain network built for speed, security, and efficiency. It combines the proof of stake consensus algorithm — PoS for short — with a novel proof-of-history, or PoH, system.
In PoS, the more of your own money you add to the pot, the larger chunk you get from the network’s reward pool. PoS relies on having as many people staking as possible, to keep the network running smoothly and securely. Some networks, including the popular Ethereum, approve the most expensive transactions faster than smaller ones. That’s because Ethereum uses proof-of-work, PoW, giving miners the option to select the most lucrative transactions first. In contrast, PoH is built like a clock; it records all transactions in real-time, making sure they are processed in order while speeding up the entire network.
Think of it like a traffic jam on the freeway. If the biggest cars get to push through first, everyone else has to sit and wait, and the whole roadway moves slower. Solana’s approach keeps traffic running smoothly and constantly, helping its network process 50,000 transactions each second, while the Bitcoin (CRYPTO:BTC) network — which relies on brawny computers racing to crack tough math puzzles in order to approve transactions — can only handle five.
And since Solana’s ultra-efficient blockchain consumes far less energy than proof of work blockchains like Bitcoin’s, it can also offer some of the lowest transaction fees on the market — less than $0.01 per transaction.
These numbers suggest that Solana has all the makings of a successful blockchain, backed by a solid native token that is holding its own on the crypto charts, outperforming the likes of Bitcoin and Ethereum (CRYPTO:ETH). SOL’s price is up by more than 6,000%from its all-time low a year ago.
Since that low point, the Solana project has been busy racking up game-changing partnerships. Chainlink, one of blockchain’s largest smart contract networks, integrated with Solana, while Kin coin — chat app Kik’s native crypto token — migrated close to 5 million user wallets to the Solana blockchain, strictly because Solana is more than capable of handling Kin’s rapidly growing community. In return, Solana received a massive influx of users to its network, boosting its value even more.
Solana’s utility makes it a great choice for…