Solana (SOL) Cryptocurrency Token Review
Popular blockchains of large projects are faced with the problem of reduced bandwidth. As a result, the speed of transactions decreases, and the cost increases. Solana blockchain can solve the problem. The platform has the ability to scale according to the growth rate of its ecosystem. The project has low commissions and high speed.
How Solana Works
In Solana Coin there are no parachains and sidechains, this is a first level block chain based on the PoS consensus algorithm. According to this algorithm, the right to process transactions in the virtual space is transferred to users with the largest number of digital coins on their accounts.
PoS is more environmentally friendly than its counterparts and is less harmful to the environment. To carry out operations in the networks of the algorithm, fewer computing devices are required, respectively, energy is saved.
The speed increase in SOL was achieved by the developers thanks to the implementation of the decentralized RoH clock. It is a node synchronization algorithm that optimizes network performance. Creation of a RoN instrument contributes to:
- increase network bandwidth;
- decrease in block production time (0.4 sec); < / li>
- improve the efficiency of the block transfer process.
RoH stores transaction data in the registry. The ecosystem differs in other advantages:
- Archivers. They distribute the stored data and optimize all records across transactions. When processing transactions, Solana nodes are replenished with SOL tokens. The blockchain has no restrictions on the minimum number of digital coins to create nodes.
- Execution. Cost SOL / USD – $ 10 per 1 million transactions.
- Scalability. For 1 sec. Solana processes at least 50 thousand transactions.
Such features Crypto SOL allow the blockchain to compete with centralized systems.
Solana Cryptocurrency has a native token – SOL. Virtual currency is used as a management token or a commission is paid by it for transactions carried out in the Solana project.
A deflationary model is used to maintain the value and create a shortage of cryptocurrency in the market. It involves burning coins at regular intervals.
Appeared SOL cryptocurrency in 2017, earned only in 2018 and works while in test mode. But interest in coins is growing, and S. Bankman-Fried played an important role in this. He is the CEO of the FTX cryptocurrency exchange and is pinning his hopes on SOL. Cryptocurrency market experts also point to the growth prospects for Solana tokens. The reason is the strong fundamental base and interest in the currency of large crypto owners.
Review of the Solana cryptocurrency shows that blockchain may soon supplant existing smart contract platforms and attract more users to the project network.