With its rapidly expanding ecosystem, Solana has risen to prominence in the crypto space. Solana was the subject of headlines in June when it raised $ 314 million through private token sales. Polychain and Andreessen Horowitz are the pioneers of Solana’s token sales.
This funding has had a significant influence on the development and growth of Solana’s rapidly expanding ecosystem. This makes it one of the most popular competitors to Ethereum, the blockchain with widest usage.
The Ethereum blockchain was highly sought after by crypto investors and users. This results in network congestion, and exorbitant transaction charges.
Side chains and Layer 2 solutions have great potential for congestion. Layer 1 networks can also exploit loopholes to create scalable, decentralized applications that go beyond Ethereum. Solana is one such Layer 1 network.
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In 2017, the project team was established. It has sold over $ 25,000,000 in ICO tokens, both private and public. March 2020 was the launch of the main beta.
The project is known for its 400ms block times and 50,000 transactions per second throughput. This performance is many thousands times better than the current version Bitcoin or Ethereum. Even though these platforms are based upon a proof of work consensus,
Solana’s theoretical capacity is 700,000.00 transactions per second. This is thanks to its focus upon greater adoption, as detailed in its whitepaper.
Solana’s technology design explains its high performance when it comes to scalability. The blockchain can process transactions horizontally and simultaneously with its sea level execution environment. The blockchain is scalable with improvements to the validator’s GPU, keeping costs low and ensuring continuous scalability.
Anatoly Yakovenko, CEO of Solana Labs, explains that the network scalability of a given hardware is proportional to its compute power. This is why it can execute tens of thousands smart contract transactions simultaneously.
The network also uses multiple GPU cores as validators. The main problem is that running a specialized hardware validation system can cost thousands of money.
Solana performance trend
Solana achieves its goal of having a distributed system that scales transactions in proportion to its bandwidth.
Certain features, such the Tower BFT consensus algorithm are essential to make the network work. Other great features are the Proof-of-History and Proof-of-History-Optimized versions of BFT.
More than 900 validators are currently part of the network. While Ethereum is still the most challenging smart contract blockchain, Solana has established itself as a leader among Layer 1 chains. It is decentralized more than Binance Smart Chains, Polkadots, Fantoms, and Cosmos.
Many new protocols are relying on the Solana Blockchain to take advantage its low transaction fees and fast transactions. This has led to more dApps being integrated into the Defi ecosystem.
The ecosystem now features more decentralized exchanges. It also has yield aggregators, automated markets makers, and stable cryptocurrency trading platforms.
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NFT markets include wallets, gaming platforms, and derivatives. The Chain also includes infrastructure-based projects, such as block explorers oracles launch pads and launch pads, as well data analysis tools.
SOL, unlike Ethereum, does not support Solidity programming languages. It is therefore not compatible with EVMs, which makes it a challenge to Ethereum.
However, the Solana Network uses Rust as its programming language. Fortunately, Rust is fast becoming one of the favorite languages of the more developing communities in the Defi ecosystem.
Neon Labs will also provide SOL with EVM compatibility through porting Solidity smartcontracts to the network.
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