Solana, as recently called Ethereum-killer, is trading with quite high demand boosted by brand new Decentralized Finance integrations. The main motivation behind this strong demand is Solana’s brand new blockchain background, which they claim to be a replacement for DeFi projects on ETH as traders look for ways to possible alternatives due to high transaction costs on different blockchain-based platforms.
Behind Solana, there is a highly functional open-source project aiming to create a solid synergy with the participation of banks, blockchain technology’s permissionless body and particular Decentralised Finance (DeFi) components. One of main focus points of the Solana Foundation is their objective to make Decentralised Finance more accessible on a larger scale of user groups. Anatoly Yakovenko, the creator of the coin, is the name behind this vision. In 2017, Yakovenko started working on a project which would later materialize as Solana. He teamed up with his former colleague Greg Fitzgerald, and they founded the project called Solana Labs. Attracting several more former colleagues during the process, the Solana protocol and SOL token were released to the public in 2020.
Even if the idea and initial work on the project began in early 2017, Solana was officially launched in March 2020 by the Solana Foundation with headquarters in Geneva, Switzerland. The Foundation mainly aims at expanding the impact area of De-Fi implementations and enlarging users pool as well. One of the main features, its protocol, is designed to facilitate mainly Decentralised app (DApp) creation within its body.
Solana also targets to improve scalability by introducing a Proof-of-History (PoH) consensus combined with the underlying Proof-of-Stake (PoS) consensus. This new type of model is called a hybrid consensus model that provides a solid guarantee for providing adequate supply capacity for small-scale traders. Proof-of-history is the main component of the Solana protocol that is responsible for the bulk of transaction processing. PoH records successful operations and the time that has passed between them, thus ensuring the trustless nature of the blockchain. The Proof-of-Stake (PoS) consensus is used as a monitoring tool for the PoH processes, and it validates each sequence of blocks produced by it. This concept allows for greater scalability of the protocol, which in turn boosts usability which makes Solana a unique phenomenon in the blockchain industry!
Solana is known in the cryptocurrency space because of the incredibly short processing times the blockchain offers. Solana’s hybrid protocol allows for significantly decreased validation times for both transaction and smart contract execution. With lightning-fast processing times, Solana has attracted a lot of institutional interest as well.
The Solana protocol is intended to serve both small-time users and enterprise customers alike. One of Solana’s main promises to customers is that they will not be surprised by increased fees and taxes. The protocol is designed in such a way as to have low transaction costs while still guaranteeing scalability and fast processing.
As of the third of March, Solana price was realized as $14,30 USD with a 2,53% increase. The market cap reached to 3,7 billion Dollar and the circulating supply reached to 261,9 million units. Since the whole supply capacity was limited to 488,6 million, 54% of this capacity has already been consumed. This indicator also shows us another example of supply-demand equilibrium which is affecting the market price. Combined with the longstanding professional expertise that creators Anatoly Yakovenko and Greg Fitzgerald bring into the project, Solana is ranked number 42 in the CryptoIndexSeries™ ranking as of February 2021.
Every new type of coin in crypto markets opens new insights and brings a new perspective in front of investors. Let’s wait and see which will be among the main players of this limitless investment environment. We will touch on more points about the following steps of disruptive players in the cryptocurrency markets in the following articles. For any further questions, please reach us via firstname.lastname@example.org or visit our CryptoIndexSeriesTM Platform for a better analysis of the crypto market space.
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