Solana claims to offer more instantaneous transaction times and lower costs than its competitors.
If you’re considering investing in this cryptocurrency, consider the following factors before doing so.
This Solana review will break down its pros and cons, including what makes it different from other cryptocurrencies, How to buy Sol, its projected market value, and whether or not it will hold up over time.
What Is Solana?
Solana is a public blockchain platform that uses smart contracts to execute transactions. Its native cryptocurrency is called SOL.
The main benefit is faster transaction times than other blockchain projects.
It also offers higher security and easier integration with existing business applications due to its compatibility with Apache Hyperledger Fabric, an open-source system for developers to build applications using blockchain technology.
How Does It Work?
The Solana platform is built on a directed acyclic graph (DAG) algorithm, a completely different method of verifying transactions.
Rather than relying on mining to confirm transactions and create new blocks in the blockchain, Solana uses an interconnected web of nodes that automatically check each other’s work to ensure security.
Solana aims to deliver transaction speeds of up to 10x faster than Ethereum and 1,000x faster than Bitcoin in just seconds.
What Are The Advantages of Choosing Solana Over Other Blockchains?
Solana is a public blockchain platform with smart contract functionality.
Solana’s team claims that it can provide transaction speeds, low transaction costs, and security comparable to what’s currently available from platforms like Ethereum.
So what makes Solana different from its competitors like Ethereum and Bitcoin? Here are a few of our favored advantages
- Solana is built on a Directed Acyclic Graph (DAG) rather than a blockchain. This means that transactions are verified in parallel rather than sequentially, resulting in faster transaction times.
The team claims to achieve transaction speeds of up to 55,000 TPS (transactions per second). Ethereum, by comparison, is capable of processing way much less than that.
- Solana’s transaction fees are also much lower than Ethereum’s. The team claims that their fee structure is designed to be substantially cheaper than other platforms, and they claim that the transaction fee will be less than USD 0.00025 per transaction.
- Solana is secured by Proof of Stake (PoS) rather than Proof of Work (PoW). This means that there’s no need for expensive mining hardware to verify transactions on Solana’s blockchain.
Instead, users are rewarded for verifying transactions with their native cryptocurrency, SOL. This makes it more affordable to participate in Solana’s network as a node operator.
- Solana is compatible with smart contracts. This means that Solana can support dApps and other blockchain-based applications just like Ethereum and Bitcoin.
The team claims that their platform will be fully compatible with Solidity, Ethereum’s programming language for smart contracts.
What Are The Disadvantages of Solana’s Blockchain Technology?
Some users have reported difficulties interacting with Solana’s smart contracts, so it may be advisable to proceed with caution when using them.
Luckily, Solana has a testnet where users can experiment without risk. Before investing in SOL tokens (Solana’s cryptocurrency), you should probably try using a smart contract and see how they fare on Testnet.
If everything goes well and you aren’t having any issues, it should be safe to transfer your assets to Mainnet.
Final Opinion: Should You Invest?
If you’re looking for an investment with a solid foundation and high growth potential, Solana might be it.
There are still issues to work out, such as interoperability and high transaction fees, but as Solana continues to develop, we expect these issues to decrease over time.
Our advice is to consider adding SOL to your portfolio if you’re looking for a fast-growing investment with some risk.