The cryptocurrency market is an environment in which users are the ones who give income to the tokens that are created and considered to have future potential as Website of digital currencies.
Bitcoin is the leading cryptocurrency par excellence; like many cryptocurrencies emerging, it had a difficult start; let us remember that the insecurities around cryptocurrencies are more significant than the execution of cryptographic investments.
The blockchain environment, for many people, is the fundamental basis that gives security and trust to cryptocurrencies since, over the years, it has demonstrated the transparency and speed of its operations.
There are currently more than 8,000 cryptocurrencies worldwide; Solana, represented by its SOL token, has recently begun to climb positions and is managing to capture the attention of a more significant number of investors.
What is Solana?
Solana is a cryptocurrency that has begun to attract the attention of many investors since last year, which has allowed its valuation and market capitalization to place it in the top 10 positions of the most popular cryptocurrencies.
This digital currency is not only interesting for its progress in the cryptographic market but also for the base that the project represents; as such, the fact that it can displace Ethereum has even been considered.
The Blockchain on which the Solana project is based has been characterized by being much faster at creating smart contracts.
IT specialists consider that the creation rate can quickly increase if its users increase, and it would not have any drawbacks in the processing speed.
This digital currency was created to contribute to the advanced design of dApps, which usually have a high level of user influx, where operation is fast, and their commissions are meager compared to other cryptocurrencies.
When did it originate, and who was its creator?
The Solana project was created in 2020 by the software developer and CEO of the SOLANA group, formerly Chevrolet; his name is Anatoly Yakovenko. He has been working on the project since 2017.
It was not until 2018 that Solana’s White Paper was published. Its creation was to take full advantage of Blockchain technology by designing a token that would allow the inconveniences of blockchain scalability to be set aside.
They carried out the first tests with only 50 nodes in the chain and managed to transmit more than 60,000 transactions per second, which was a highly competitive speed that many could envy.
It was there that they verified that the project was a reality that would reach the digital market to position itself and improve the quality of the transactions carried out on the Blockchain.
The main attraction of Solana is based on the fact that at the time of its creation, they considered relating the Proof of History (POH), the Proof of Stake (PoS), and the inclusion of the verifiable delay function, where they are reduced, for better operability. the ranges of time and the costs per transaction.
Solana can organize operations chronologically, whose difference in time range can reach perhaps 0.1 seconds of difference, which is very interesting since it can prevent users from performing duplicate operations.
What drives Solana’s market capitalization?
Decentralized finance today is generating a furor among many investors, which is a sure way many consider to have been the cause of the increase in Solana’s capitalization.
Experts from the financial sector and NASDAQ indicate that Solana is a project that, despite its exciting characteristics, is still a volatile digital currency and will indeed generate significant returns equivalent to its volatility.
This cryptocurrency has managed to revalue over 4000% in less than a year, which is impressive in the digital financial market.
Being an extremely fast Blockchain and whose transaction fees are usually negligible and it is also easy to master, these aspects drive this cryptocurrency, even considering that it could surpass Bitcoin.
Another characteristic that can be identified when analyzing Solana is that energy consumption is lower due to its speed, and therefore, the impact on the environment is relatively minimal.
Cryptocurrencies are in a digital financial market that is constantly changing, so there are digital currency projects that may arise due to their unique and innovative characteristics.
Also Checkout: DAY TRADING OR SWING TRADING WHICH ONE IS THE BEST OPTION?
Leave a Reply