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What Is Solana All About?




What Is Solana All About?

What Do We Know About Solana?

Solana project dates back to 2017, and it was imagined as a blockchain platform to combat Ethereum and similar solutions. It’s done a great job over the years, but is it the right time to convert ETH to SOL today?

Before going through with this trade, check out this latest update on Solana. Here’s everything to know about the platform and its native SOL token to help you make an informed trading decision!

What Is Solana?

Solana is a network that utilizes blockchain technology and hosts decentralized apps. It uses smart contracts to execute transactions, and it’s also possible to use it to create NFTs. Solana’s purpose is similar to Ethereum, but the platform aims to offer some improvements. Its major advantage is better transaction speed than Ethereum since Solana can handle 60,000+ tps. And the best part is that it does that while keeping the fees considerably lower.

It took almost three years for developers to release Solana to the crypto market. SOL token became available in 2020 with an opening price of $0.95. Today’s value is around $24, putting this token in the top-ten crypto ranking list. Solana has an impressive market cap of $9 billion, and its circulating supply includes 371 million SOL tokens.

How Does Solana Work?

Solana uses a mixture of DPoS (delegated proof of stake) and PoH (proof of history) to run its platform.

DPoS is an adjustment to PoS that was first implemented in 2015. Network users join tokens in a pool and choose the desired delegates, which are changeable later. Instead of sending funds to a wallet, a special mechanism facilitates staking. Delegates validate blocks and receive rewards for doing so correctly.

PoH is an additional mechanism that upgrades DPoS. A timeline and order of events is a huge problem in distributed networks since the nodes inside it cannot trust info coming from outer nodes due to security reasons. That’s why PoH establishes a safe system to establish a timeline inside the network. It uses the Verifiable Delay Function to order the messages received, which speeds up transaction processing.

Investing in Solana

If SOL seems like an attractive investment option, the good news is it’s easy to begin. You might encounter some promotions to earn free Solana, but the fastest and safest way to acquire it is via reputable crypto exchanges.

You’ll need a secure crypto wallet compatible with SOL to store the coins. Always keep your digital wallet’s keys safe, and go with a hardware wallet if possible.

Once you have Solana, you can use it for various purposes. Some platforms offer about a 5% annual yield if you only store SOL for this time, and there’s the option to lend the currency to profit from it. P2P payments or trading it for other currencies are other ways to use Solana.

SOL Price Forecast

Experts agree that 2023 should be the year of stabilization for Solana and other cryptocurrencies. Depending on the overall market movement, SOL could stay at a value of around $20 or grow to as much as $45.

The following years should bring better times for Solana. By 2025, the token could be worth up to $70, and a whopping $200 to $400 in 2030. If that sounds like a good deal, use a reliable cryptocurrency converter and get SOL tokens today.

Start Using Solana Now

The positive crypto trend in 2023 has led to significant SOL token value growth in the last couple of months. You might still have time to jump on board and catch the short-term trend train.

If you prefer long-term investment strategies, Solana could be a smart choice. With its value likely to double in a year or two and grow up to 20 times by 2030, it might bring in significant profit. But remember that these are all forecasts or educated guesses. Nobody knows what will happen, so perform your own research to confirm if SOL should be a part of your investment strategy!

Tessa is a Senior Writer at Patty360. She has previously worked as a freelance journalist for various news sites in the UK.

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