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Solana is a project which provides Decentralized Finance solutions by banking on blockchain technology. It is an open-source project which is highly functional since 2020. It was primarily designed for facilitating the creation of Decentralized apps. The current market price of SOL is $41.20 after an increase of more than 14.6% over 24-hours. It has grown up by nearly 70% within a week.
Solana protocol introduces a proof-of-history consensus combined with a proof-of-stake consensus model, aiming to improve the scalability. Proof-of-history consensus is responsible for the transaction processing in bulk, while the proof-of-stake consensus monitors the PoH processes to validate each sequence of blocks. This innovative hybrid model interests the institutional and small-time traders because greater scalability boosts usability.
One unique feature of crypto is that its processing time incredibly short. Its hybrid protocol provides a significantly decreased time for smart contract execution and transaction. The protocol is also designed to have low costs for the transaction. So, the traders need not worry about the increased fees and taxes.
Solana’s growing performance since a month is primarily because of the launch of multiple projects on the blockchain. Solana is one of such protocols which has gained popularity because of its lower fees and faster transaction time, unlike many major networks. The network claims to offer 65,500 transactions per second. It can handle a more significant load, making the platform a cross-chain destination for many projects, including serum and Raydium.
It is a fourth-generation blockchain that leverages the open infrastructure for proving more scalability. It has come up with many technologies for providing unmatchable security and transaction speeds. It aims to rectify many problems faced by the crypto market.
There occur many severe congestion issues because of the reliance of blockchain on the proof-of-work consensus. On the contrary, Solana successfully avoids these issues by introducing the systems to allow to scale the network’s throughput.
The platform is distributed and trustless, making it perfect for the day to day commerce where the users can conduct global transactions within few seconds. Also, there is no one to block or stop the transactions like in fiat currencies because there is no centralized control.