Solana (SOL)

What is Solana?

Solana is a highly functional open source project designed to provide decentralized financial solutions (DeFi) based on the unlicensed nature of Blockchain technology. Initial idea on the Solana project began in 2017, but the network was officially launched in March 2020 by the Solana Foundation with a central ledger in Geneva, Switzerland.

Solana is a blockchain platform specifically designed to host decentralized applications and launch smart contracts. It is similar to other leading Dapp blockchains like Ethereum.

Solana's main goal as Etherem's  competitor is to improve the scalability of the blockchain by introducing the Proof-of-history (PoH) Consensus along with the Proof-of-stock (PoS) consensus in blockchain.

 Due to the innovative hybrid consensus model, Solana is of interest to small and organizational traders. The Solana Foundation intends to make decentralized financial resources available to the community and in various fields on a larger scale.

What makes Solana unique?

Solana is known in the cryptocurrency industry for the very short processing time offered by the blockchain. The Solana Combined Protocol allows for a significant reduction in validation time for the execution of smart transactions and contracts. Due to the short processing time and high speed of transactions, Solana has attracted a lot of organizational attention.

 In fact, the Solana protocol is designed to serve small users and corporate customers alike. One of Solana's main promises to customers is that they will not be surprised by the increase in costs and taxes while using this network. This protocol is designed to have low transaction costs and at the same time ensure scalability and fast processing.

What is SOL used for?

SOL is Solana's native cryptocurrency, which serves as a functional token to help the network function properly. The SOL token uses the SPL protocol standard. SPL is the standard of the Solana blockchain token, similar to ERC20 in Ethereum.

  Users need SOL currency to pay transaction fees when making transfers or interacting with smart contracts. In addition, SOL holders can take part in network validation and receive rewards in return.

Finally, like Ethereum, Solana allows developers to build smart contracts and create projects and applications based on the blockchain.

It is interesting to know that the Solana network eliminates SOL tokens as part of its inflation reduction model during the token burning process.

In summary, the SOL token has three main uses:

• Payment for transactions that are made while using the network or smart contracts.
• Staking tokens as part of the proof-of-stock consensus mechanism.
• Creating decentralized applications or Dapps on the Solana blockchain platform.