As many of us in the space say, crypto never sleeps. That is one aspect that makes digital assets attractive to their users. Our bank is always open, where one can send and receive funds with little to no effort, whenever and wherever we want. With that comes the need for speed and the technology to drive that. Let’s dive into how Solana crossed the milestone of 100 billion transactions in only a few years and where the layer-1 protocol is moving toward next.
The Soul of SOL
Solana was created as a layer-1 blockchain and launched in March 2020. Anatoly Yakovenko, a Ukrainian-born programmer, was at the helm, having the vision for SOL starting back in 2017. Raj Gokal, Greg Fitzgerald, and Stephen Akridge make up the team of co-founders. Many view Solana as a competitor to Ethereum. One highlighted aspect is its speed, and Solana is indeed quite fast. It can process up to 3000 transactions per second with low fees.
SOL differentiates from other blockchains as it uses proof of history or PoH. Evidence of History combined with proof of stake or PoS creates a hybrid model. With PoH, time is the metric to recognize a successful agreement on the network.
The validation occurring with this is the block height. Block height is essentially the block number where the transaction/s happens. This pairing certainly makes it unique to a one-armed system solely using PoW or PoS, for example.
Solana runs on a language called Rust and is a popular choice for it is expandable and secure. Many big and small companies use the language, and programmers widely praise it. Well-known companies such as Microsoft, Google, and AWS have been inching closer by joining the Rust Foundation, a Swiss-based nonprofit. It is integral as by taking part, these companies are participating in some experimentation. Having these big names enriching the open-source ecosystem is good news for Solana.
To A Trillion And Beyond
After zooming past 100 billion transactions, Solana could reach a trillion transactions before we know it. It has a cult following for SOL NFTs, which is a promising sector when raising the transaction count. In addition, Solana is utilized significantly in DeFi and with lending protocols, gaming, and Web3 apps.
Even though it’s a bear market, we have seen building and partnerships continue. Just look at the Solana phone, for instance. Hardware paired with software is another excellent way to rack up the transaction count.
The anticipated device, Saga, is set to be released in early 2023. Imagine a mobile phone that can use Solana and the Solana Mobile Deck. Of course, there are bugs to work out with SOL, just as with any new technology; however, those inclined to participate are excited.
Even though Solana has been through some recent issues, it still has a loyal user base. But that’s what it comes down to, especially as an Ethereum competitor, network effect v. faster technology. So, I ask this when there are other layer-1 blockchains to choose between. What is the advantage of using this product versus one of its competitors?
Overall transaction costs average a meager $0.00025 per transaction. These inadequate costs certainly make Solana a popular choice and have been a part of it standing out early in its existence. With the bear market in effect, transactions are still happening. And transaction count is a notch on the belt of commonly viewed metrics.
If Solana can stave off the network disruptions it has experienced, things could look rosy for the times ahead. As Decentralized Finance becomes more popular, the leading transaction type on SOL, we could see the ecosystem grow further.