Getting to know the Solana Cryptocurrency Digital Money

Lovata Andrean

Getting to know the Solana Cryptocurrency Digital Money
Getting to know the Solana Cryptocurrency Digital Money

Rancakmedia.com – Solana Coin is one among dozens of cryptocurrencies in the digital market today. According to statistics from coinmarketcap, Solana coin is currently in 4th place, slightly behind Binance and Ethereum coins.

Coin Crypto Solana has undoubtedly generated attractive returns this year.

Interested in investing in Solana coins? First, confirm the following 5 things you need to know about Solana coin:

Here are 5 things you need to know about Solana coin

1. Rapid growth, Solana is up 13.300 percent from the start of the year

At the start of this year, 1 Slana coin was worth $1,51 and the Solana coin market cap was around $86 million. It has grown more than 13.300 percent since then, where 1 SOL is currently worth $202,42 according to CoinMarketCap.

With a market value of around $62 billion, Solana has become the sixth largest cryptocurrency by market size.

It can be accessed through most major cryptocurrency exchanges and apps. And many investors have staked Solana coins in their hands, tying them up for a certain period of time to contribute to the security of the network to earn interest.

2. Potential alternative to Ethereum

One of the main motivations driving the growth of the Solana coin is people looking for alternatives to Ethereum. Ethereum is the second largest cryptocurrency in the world, and the first to incorporate smart contracts.

Smart contracts are shortcodes that enable blockchain systems to run decentralized applications (dApps) and other programs. The difficulty is that the Ethereum network is very busy and transactions are expensive. As a result, attention is turning to new platforms that are faster and cheaper.

There are those who call Solana a Killer Ethereum coin jockeying for position, each trying to recruit developers and claim market share. Like many cryptocurrencies with newer smart contracts, Solana coins are not as battle-tested as Ethereum.

If you are considering purchasing Solana coins, pay attention to the competitive climate as each cryptocurrency has its own advantages and disadvantages.

3. Transaction speed per second

One of the main features of the Solana coin is that it can process around 50.000 transactions per second (TPS) (TPS). In contrast, Ethereum processes between 15 and 45 TPS, but is in the process of upgrading to Eth2 which will make it faster.

Speed ​​isn't everything, but other cryptocurrencies closing in on the Solana coin in this race are also worth noting. None other than that Visa stated that it processed around 24.000 TPS, which means Solana coins can exploit current payment networks to get their money.

4. Solana uses historical evidence

The brilliance of blockchain technology is that it removes the middleman from all types of transactions. For example, Bitcoin (BTC) is a type of digital money that does not require bank or government support.

But without intermediaries, blockchain networks require alternative techniques to keep themselves secure and prevent fraud. Bitcoin uses a proof-of-work validation approach to achieve this. Without getting too technical, it contains a succession of network validators that must contribute large amounts of computing power.

The idea is, it would take so much computing power to create a fake record, that it would be practically impossible. This makes the network secure, but not energy efficient.

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Lovata Andrean

Hi, I'm Lovata, I'm not Ai but I am a content writer for SEO, Technology, Finance, Travel, Cooking Recipes and others. I hope this can be useful for all my friends. Thanks