Solana ($ SOL) is taking on one of the biggest challenges with existing blockchains: scalability. This problem has always been the nightmare of mass adoption of cryptocurrencies. With poor transaction performance, the cryptocurrency cannot fully compete with payment systems such as Paypal or Visa. And this is the reason why Solana was developed. With the ability to process more than 50,000 transactions per second, Solana has attracted several proponents of cryptocurrencies, including the FTX exchange. But what exactly is Solana and how does it work?

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Check out this video on what makes Solana so sexy right now.

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Anatoly Yakovenko founded Solana in 2017. Yakovenko previously worked for Qualcomm. He also has experience with compression algorithms after previously working at Dropbox as a software engineer.

Together with Greg Fitzgerald, Solana’s CTO, as well as Eric Williams, they conceptualized a new way to deal with the performance issues that were present in the Bitcoin and Ethereum blockchains. y envisioned a distributed and trustless protocol that allows for greater scalability, which is how Solana was born.

What is Solana? Key innovations

1. Proof of History (POH) – Cryptographic clock for the blockchain.
2. Tower BFT: Solana’s version of the Practical Byzantine Fault Toleration (PBFT) system
3. Turbine: Blockchain transmission protocol.
4. Gulf Stream: Forwarding protocol without memories.
5. Sealevel – Parallel Smart Contracts from Solana.
6. Pipeline – Transaction processing unit.
7. Cloudbreak – Account Database.
8. Archives: storage of blockchain history.

Let’s take a look at these key innovations one by one.

History test

Solana brought to the community a new solution to make a more decentralized blockchain. PoH system incorporates historical records of blockchain transactions to demonstrate that the transactions actually occurred before they are included in the distributed ledger.

This is done by what Solana calls the “verifiable delay function.” In the Solana blockchain, transactions are embedded with time stamps that help establish the sequence of events that were processed before the last blockchain state is broadcast to the entire network.

Transactions are entered in blocks via Solana’s preimage resistant sequential hash, simply referring to hashes that cannot be altered. se hashes are then used as input for the next transaction. se inputs are then timestamped to record their actual sequence and eventually save time by having to revalidate each hash function completely.

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BFT Tower

TowerBFT is Solana’s version of the PBFT system. consensus algorithm uses PoH as its crypto clock to achieve blockchain consensus without incurring massive messaging overhead and transaction latency.

Before the ledger status is finalized, the validators vote on which version of the ledger is accurate. So your vote is blocked. This means that they are prohibited from taking a different vote on a future version of the blockchain that does not show the record of previous votes on it.

Turbine

Solana makes it easy to transmit data to each blockchain node by breaking it down into smaller packets. This helps Solana address bandwidth issues and increase its ability to settle transactions faster.

Gulf Stream

Solana can achieve a network throughput of 50,000 transactions per second by facilitating the block confirmation process. Gulf Stream makes it easy to capture and forward transactions even before the next set of blocks is finalized for confirmation.

sea level

Thousands of smart contracts run in parallel with each other to achieve a more efficient execution time for Solana. Transactions that are in the same blockchain state can run simultaneously.

Canalization

A set of blocks containing transaction information is quickly validated and replicated across all nodes on the network. Solana does this by assigning an input data stream to different hardware that is responsible for each of them.

Cloudbreak

Solana achieves scalability without risk of fragmentation by organizing a database that simultaneously reads and writes transaction input. Cloudbreak establishes a data structure where transactions are processed in software that uses each hardware responsible for indexing the data.

Cabinets

Solana’s network allows each node to replicate information from the blockchain according to the space available on its hardware. archivers download their respective data from the validators, and this data is accessible to the network.

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SOL Token ($ SOL): What is it and what is it for?

Solana’s native token is $ SOL. Currently, there is a circulating supply of 26 million SOLs and has a maximum supply of 489 million SOLs.

Stake out SOL

Solana is a Proof-of-Stake (PoS) network with branch offices. Validators process transactions and run the network. Since validators are also chosen based on the amount of participation they have in the network, it is likely that the most important validators are chosen to enter transactions on the blockchain. And when they do this, they get rewards. refore, validators would want to entice delegators (ienon-validator SOL token holders) to assign them tokens to bet on their behalf. Validators do this by offering lower commissions, which delegates must pay to validators in the form of a fee that represents a percentage of the rewards earned.

How to bet SOL tokens

Gambling SOL tokens can also be a way for users to profit if they only have their tokens.

1. Transfer tokens. To stake SOL tokens, users must first transfer their tokens to wallets that support gambling. se are wallets like Ledger Nano X.
2. Make a betting account. A participation account will have a different address than the compatible wallet that you will link it to.
3. Select a validator. After creating a participation account, you can choose from Solana’s validators to determine who you will delegate your SOL to.
4. Delegate your stake. Once you have chosen a validator, you can use your wallet to delegate your betting account to them.

Solana Partners with Serum ($ SRM)

Serum is a new decentralized derivatives and high speed non-custodial spot exchange (DEX) built in Solana. reason Serum wanted to build on Solana is because it wanted to enable the best of both worlds centralized and decentralized – that is, an exchange that is capable of being censorship-resistant and non-custodial, yet fast, inexpensive, and highly liquid. . And this can only be achieved because Solana allows Serum to run on a chain-based central limit order book (CLOB) that is updated every 400 milliseconds.

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What does this mean for cryptocurrency and DeFi traders? It means that the serum will have the lowest latency and gas costs.

Learn more about the serum ($ SRM)

conclusion

common problem with the above blockchains are issues related to transaction settlement speed and bandwidth. With Solana’s new architecture driven by a new way of verifying transactions and coupled with an efficient PoS mechanism, it can definitely be a strong candidate for platforms that could compete with Bitcoin and Ethereum.

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