TECHNOLOGY

Why Is Solana Becoming Popular These Days?

Solana

Cryptocurrency brought the dawn of a new era to the world’s financial services industry and financial markets. Bitcoin is the first Cryptocurrency, and every other currency that came after it was an alternative variation of the same. So, it was named Altcoins. New Altcoins are emerging every day, and at the same time, some of them get removed as well. Ethereum is the biggest Altcoin occupying a quarter of the total Cryptocurrency market at six hundred billion dollars.

Another Altcoin that has been gaining recognition in recent times is Solana. Solana is now the fourth-biggest Cryptocurrency globally after Bitcoin, Ethereum, and Binance Coin, after it overtook Cardano in terms of market value. Solana is a decentralized Cryptocurrency platform representing gaming and computer-based activities. It promises to achieve high transaction speeds while maintaining decentralization. It uses various innovative techniques, including the “proof of history” method, which has been integrated from the “proof of stake” method in Bitcoin Code. The symbol for Solana is SOL.

What Is Solana Capitalizing On?

When Bitcoin was created more than a decade ago, it addressed a complex problem: how to allow strangers from all over the world to conduct financial transactions over the Internet without the involvement of a payment intermediary? This also involved the presence of a security feature required by the system to protect against third parties who had malicious interests. 

A blockchain is a technology that allows for decentralized transactions and gave birth to the entire world of Cryptocurrencies we know today. However, when contrasted to centralized networks like those used by credit card firms, blockchains have one fundamental disadvantage: they are slow. Ethereum currently processes fewer than 15 transactions per second, compared to tens of thousands for Visa’s network in August 2021.

What Makes Solana Unique?

Solana is one of the slower ones of new Crypto solutions to make Crypto networks more scalable and speedier. Solana as a gaming system Crypto coin uses a combination of proof of stake by Bitcoin and a new mechanism called “proof of history.” This was designed to use the decentralized network without all the computers having to communicate about it and keep the time between computers at a minimum.

Why The Recent Boost?

Solana’s value has increased by 17% in the last seven days, reaching an all-time high of $260 and a market value of 78 billion dollars. It has been given the name of ‘Ethereum Killer’ and is now the fourth-largest Cryptocurrency in the market, ahead of Cardano, which has slid to sixth place. 

The market valuation between Ethereum and Solana is still $526 billion. Despite this, investors and fans are becoming more confident that Solana will eventually overtake. Its stock had risen to $246.16 after its investment arm when Solana Ventures announced a new $100 million fund in partnership with Lightspeed Venture Partners and the derivatives exchange, which recently raised $420 million. As such, it put its valuation at $25 billion announced a new $100 million fund to boost gaming on the blockchain.

Also Read: The Top Crypto Trends To Watch For In 2022

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