What is Solana? Solana Coin: SOL

Hey guys and welcome to the Exodus channel,
your home for the best crypto videos. Make sure you hit those like and subscribe
buttons and we’ll keep the videos coming. With a name inspired by the coastal beach
in California, Solana is a blockchain that has breezed into the race to be the fastest,
most secure and scalable solution in crypto land. How does it measure up? Will it edge out Ethereum or other high-performance
blockchains like Cosmos? Let’s find out: What is Solana? and What’s
the use case of the Solana Coin SOL? Solana’s team includes former leading technologists
from Qualcomm, Intel, Netscape and Google. Its CEO, Anatoly Yakovenko has software engineering
experience from Qualcomm and Dropbox. The Solana network was able to raise funding
from investors such as Multicoin Capital, Foundation Capital and Distributed Global
to the tune of 25 million dollars. Now, let’s get to the nitty-gritty stats:
First, scalability. Solana scales as a Layer 1 blockchain at the
rate of Moore’s Law, which states that processing speeds double every two years. Simply using CPU and GPU power, there is no
need for sharding or other complicated Layer 2 solutions that compromise security and stability.

We’ll get into how Solana achieves this
later. Next, speed: Solana creates a block every
400 milliseconds, with sub-second confirmations and transaction speeds of 50,000 per second. With such speeds, Solana has already passed
Ethereum in terms of block count. This has led some people to call Solana the
world’s first web-scale blockchain, as it has transactional capacity comparable to the
Internet. Next, validators: Solana has a global network
of over 350 validators, ensuring network security and stability. Anyone can be a validator on Solana, with
no minimum staking requirement. Finally, fees: Solana costs about $10 for
every 1 million transactions, making it one of the lowest cost chains round the block.

In comparison, Ethereum transactions cost
an average of $2. What makes Solana different? Solana puts forward 8 core innovations that
differentiate it from the competition. And they are: Proof-of History, Tower Byzantine
Fault Tolerance, Turbine, Gulfstream, Sealevel, Pipeline, Cloudbreak and Archivers. We won’t be going into detail except for
Proof-of-History, which is Solana’s key innovation and “secret sauce”, allowing
it to offer blazing fast transactions at 50,000 transactions per second. For further detail on the rest, you can head
over to Solana’s blog or read their White Paper.

Despite the name, PoH is not actually a consensus
mechanism such as Proof-of-Work or Proof-of-Stake. PoH is actually a cryptographic clock in Solana’s
blockchain that allows nodes to agree on the time and the ordering of events, without having
to talk to each other. Each Solana node maintains its own clock by
encoding the passage of time in a simple, SHA-256, sequential-hashing Verifiable Delay
Function. That is a mouthful of words, so, think of
it graphically like this: Imagine taking a picture of yourself holding a newspaper showing
the date and time, and publishing that photo in the next issue of the newspaper.

PoH works in a similar way to record time. This decreases node messaging overhead and
other computation bulk, so allowing Solana to reach its high speeds. Solana’s unique offering has attracted over
100 projects in DeFi, Web3 and blockchain gaming to date. Let’s look at some of them. First up, the crypto-derivatives platform
FTX founded by Forbes 30-under-30 Sam Bankman-Fried. FTX launched a high-speed decentralized exchange
called Serum on Solana, leveraging Solana’s capabilities to offer sub-second settlement
with minimal transaction fees. Next, Audius, the community-owned audio streaming
platform has also chosen to partner with Solana, and is currently working on migrating its
content management system, with a catalog of over 150,000 audio tracks, to the Solana
blockchain. Finally, Chainlink, the oracle providing data
feeds to decentralized exchanges, is also partnering with Solana to develop a high-frequency
Oracle that will be able to provide price updates every 400 milliseconds.

With promising partnership’s Solana’s
ecosystem is growing fast and carving out a formidable niche in the crypto space. Solana’s mainnet is currently running in
Beta mode since March 2020 and has processed over 7 billion transactions to date. However, recently on 4 Dec 2020, Solana experienced
an outage which lasted for 6 hours. The network managed to resume function eventually,
with commentators reminding that Ethereum too had teething problems during its early
days. What about the $SOL token? The $SOL token is the native cryptocurrency
on Solana’s network, and is used for transactions on the blockchain including for micropayments. Users can also delegate and stake $SOL and
earn additional rewards. There is currently a circulating supply of
26 million $SOL, with a total maximum supply of $SOL capped at 489 million.

What’s your take on Solana? What are your price predictions for $SOL? Hit subscribe and the Like button and let
us know in the comments below..

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