Exactly 54 days ago, when you wanted to buy Solana (SOL), you were paying about $ 20. But today the price has almost doubled and reached the $ 50 limit again! Solana (SOL), which is one of the most exciting projects in terms of utility generation, continues to be a favorite of cryptocurrency hobbyists looking to make long-term investments. So what do you know about Solana (SOL)? What is the difference between Ethereum (ETH) and other smart contract networks? Here are all the important details about the system and an in-depth analysis of Solana with its best crypto signals by SafeTrading!
↑ Why is Solana (SOL) beneficial?
There are many projects that are being released to become Ethereum (ETH) killers. These projects, of course, do not want to strangle Vitalik Buterin. However, he wants to add developers using the Ethereum (ETH) network to his networks. Among these alternatives, Solana (SOL) is a stronger alternative than Cardano (ADA) and others. Because it goes beyond promises, lives up to expectations.
Yes, today people are buying the future on networks like Cardano (ADA). They are investing in the hope that they will evolve into much more functional and advanced networks. However, Solana (SOL) is different and more profitable than all of them, so what are these advantages?
- The transaction fees are extremely low.
- If you want to launch a project on the Solana (SOL) network, you pay very low fees.
- When SafeTrading thinks about Ethereum (ETH) gas fees, a very important detail is fees.
Solana’s network uses a Proof-of-Stake algorithm to validate blocks. In other words, it has long been using a new algorithm model that Ethereum (ETH) plans to transition by 2023. This makes it more environmentally friendly and faster for users of the bestr crypto signals.
There is also a feature called Proof-of-History (POH) that works with this algorithm. This detailed algorithm, developed by Yakovenko, is called “proof of history.”
In other words, such a model was developed in addition to two popular algorithms such as Proof-of-Work (proof of work), Proof-of-Stake (proof of blocking in the network). This feature makes the Solana Network (SOL) much more secure and private.
↑ Unique features of the Solana (SOL) network
All of these features deserve to be called unique because they are not networked apart from Solana. Yakovenko, developer of the Solana project, has worked at Qualcomm on wireless protocols for over 12 years. Wanting to create a unique blockchain, the founder found a way to include the network in the SHA-256 hash function (256 secure hashing algorithm). However, the Proof-of-History algorithm, which SafeTrading specifically mentioned above, has been formed.
The POH algorithm is a structure that can protect itself from attacks. This algorithm, which takes a group of inputs and outputs a fixed size, removes the security issue. Of course, this is of great interest to the growing DeFi ecosystem.
Attacks from malicious nodes, known as Practical Byzantine Fault Tolerance (PBFT), can be easily countered because distributed networks operate on a consensus basis. This is of course the second new protocol known as Proof of History (PoH).
- Last year (although the network is still in beta) there were 100 projects on the network.
- Now this number has exceeded 250.
- There are 905 validators and 1331 nodes in the network.
- Moreover, the transaction fee is ridiculously $ 0.0025.
- The SafeTrading team can say that Ethereum (ETH) is almost free next to gas fees.
Very few project features are used. However, 1375 transactions per second are still being processed. Moreover, the Solana network is the official network for the USDC, the second most popular stablecoin in the world.
↑ What are the disadvantages of Solana (SOL)?
The project, which has published a large number of open-source documents, has yet to announce a clear roadmap. There is no clarity about the mandate of the Solana Foundation. This carries the risk that the network will become too centralized in the future.
The fund owns 10% of the total number of tokens. In addition, a Solana (SOL) 11.3 million wallet was recently discovered. The market maker providing liquidity to the exchanges has not made detailed statements about the wallet. However, despite this reaction, the tokens in this wallet were burned.
During the Mainnet in December, the network was down for 6 hours. This error was due to the fact that the project is still in beta testing. It is possible that such an error can be encountered during the Mainnet, which will appear in the near future. These issues, which have damaged the project’s reputation, need to be completely addressed.
The Solana blockchain is becoming increasingly preferred by newcomers to the market. Solana also appears to be increasing adoption rates through Wormhole, a bridge that facilitates communication between various blockchains such as:
- Ethereum.
- Terra.
- Binance Smart Chain.
The developers claim that it is a simpler and faster solution allowing easy transfer of crypto assets such as price data, tokens, NFTs, and governance solutions. In addition, the Wormhole cross-chain messaging platform will facilitate the transfer of liquidity between chains with the Solana Serum ecosystem.
In addition, Mago Markets, a decentralized exchange (DEX) on the Solana blockchain, raised $ 70 million in token sales last week. Thus, very encouraging prospects have been created for new players to join the Solana ecosystem.