Solana is an ultrafast blockchain offering lightning-quick transactions and low fees to attract both developers and investors. Renowned for its unique approach to scaling, using proof of history and proof of stake as key consensus mechanisms, Solana stands out as an attractive proposition.
Solana project began as a research initiative led by Qualcomm engineer Anatoly Yakovenko in 2017. He noticed that existing blockchain networks were struggling to handle large numbers of transactions without slowing down, so he developed an algorithm called Proof of History which uses Verifiable Delay Function to prove when an event took place, rather than assigning timestamps simply.
Early 2018, Yakovenko joined forces with fellow Qualcomm engineers Greg Fitzgerald, Stephen Akridge and Raj Gokal to form Solana Labs. Together they continued the development of their proof of history protocol with new features and improvements; by March 2020 Solana had launched their Mainnet beta with basic blockchain transaction functions and smart contracts – this name being inspired by Latin word meaning sunrise as its founders lived close by while working at Qualcomm in California.
Solana follows in the footsteps of other cryptocurrency networks by employing blockchain technology to store transactional data in a decentralized ledger, providing an immutable record and increasing network security. Furthermore, Solana blockchain enables developers to build applications.
Blockchain systems differ from traditional banking in that they are decentralized and do not rely on a central authority for operation, giving users greater trust of the system as long as they adhere to its rules. Unfortunately, however, no blockchain can evade attacks, so Solana was designed to mitigate vulnerabilities and threats through several safety measures implemented within Solana itself.
Solana utilizes a hybrid proof of work/proof of stake (PoW/PoS) consensus mechanism to preserve and secure its blockchain and transactions. Turbine, Solana’s PoW component, processes and validates transaction data before being supported by Cloudbreak’s memory mechanism that tracks participant balances and permanently stores transaction records.
Solana offers a decentralized marketplace where users can sell and buy NFTs. These marketplaces are built on blockchain and use smart contracts for automated transactions. Smart contracts are digital agreements programmed using one of Solana’s programming languages that contain terms and conditions that automatically execute once agreement criteria have been fulfilled.
Solana blockchain is fast, secure, and transparent – its high transaction speed attracting NFT and cryptocurrency projects alike. Additionally, investors have taken notice with its unique approach to scaling seen its price skyrocket over 150% year-to-date and reach an all-time high of $264 in November 2024! Solana’s native token, SOL has seen substantial gains year-to-date as it reached an all-time high of $264 in November of 2024!