As the first blockchain with smart contract functionality, Ethereum (ETH -0.75%). Brought the promise of real-world usefulness to the crypto market. The price of Ether, a native token, has skyrocketed by 78,000% since its launch in 2015 (as of May 11). So an investment of $ 100 at the time is today worth an astonishing $ 78,100.
But there is a young cipher called Solana (Sol -1.37%)., It also generated amazing profits. Since its launch in early 2020, it has skyrocketed by 6,870%. And even after these significant increases, I think there is still a promising future.
If you Missed Ethereum In recent years, you will definitely want to consider Solana now.
Solana is fast and cheap
Solana is called the “Etherium Killer” because it seeks to innovate and improve some of the shortcomings of its larger rivals, especially because it’s related to speed and expandability. Ethereum’s network is very slow and is known to process only 14 transactions (TPS) per second. Also, during peak demand, network charges can exceed $ 50. If crypto becomes mainstream and you want to attract more users, this capacity won’t reduce it.
With Proof of stake The consensus mechanism, the owner of SOL, Solana’s native token, can lock coins to validate transactions and post them to the blockchain.Faster and more eco-friendly than Ethereum Proof of work algorithm. You need a computer warehouse to solve complex math problems, validate transactions, and add them to the blockchain.
In addition, Solana has a built-in history proof that records the time stamp of each block to speed up validation. As a result, the Solana network can process 65,000 TPS in a fraction of a penny per transaction.
As of May 11, Solana has a total market value of $ 15 billion, making it the ninth most valuable cryptocurrency in the world. Currently, 337 million SOL tokens are in circulation.
Solana was founded in 2015 by two exsQualcomm Engineers Anatoly Jacobenko and Greg Fitzgerald. Not surprisingly, their expertise in software and distributed operating systems was directly transferred to the work done at Solana.
Solana can support DeFi
Not surprisingly, with the ability to handle large numbers of transactions at an incredibly low cost, Solana is an attractive foundation for financial services, the most promising use case for cryptography.Called Decentralized finance (DeFi), these applications can provide basic banking and intermediary products without a central intermediary. This wilderness space may lack security, but consumers can expect very favorable rates compared to those accustomed to traditional financial institutions.
Image Source: Getty Images.
Currently, DeFi projects such as the decentralized exchange Serum and the banking platform Solend are operating on the Solana network. And the locked total is a measure of the amount of money stored in various DeFi protocols on Solana’s blockchain, which was $ 4.4 billion at the time of this article’s writing.
These are arguably exciting developments to watch, but perhaps the most promising projects are Solana Pay.. Solana Labs, a company working to advance the ecosystem, has launched Solana Pay as a peer-to-peer payment network that can facilitate direct commerce between consumers and merchants with immediate payments and essentially zero fees.
Innovative to eliminate all intermediaries and all complexity of traditional payment systems. Merchants can build valuable relationships with their customers in ways never before possible, while promoting better engagement, loyalty, and repetitive purchases. It is Solana’s most promising development.
Analyst Alkesh Shah Bank of AmericaSolana saidvisa Of the digital asset ecosystem
Cryptocurrencies are dangerous
Solana does show great promise, especially in DeFi and payments, but like all cryptocurrencies, it’s dangerous. Blockchain technology and encryption are so new and still evolving rapidly that there are many unknowns today. Therefore, investors need to invest only money that they are willing to lose in cryptocurrencies. It helps to have a portfolio that is diversified enough to make the ride quality smooth along the way.
Despite falling more than 70% from its all-time high, Solana is the best cryptocurrency to consider.
