Solana is an extremely scalable crypto platform that can achieve transaction speeds of up to 65,000 transactions per second. The most important technological innovation that Solana has brought to the crypto market is the Proof of History (PoH). As a consensus mechanism, Solana relies on Proof of Stake (PoS), which means that staking is also possible with Solana. The total number of Solana tokens is 500 million.
Proof of History (PoH)
The proof-of-history algorithm embeds transaction histories in the data of a blockchain transaction to confirm that a transaction has taken place. A verifiable delay function is used to embed time stamps in the transactions so that it can be determined before publication in the network which transactions have already been carried out. As is usual with a blockchain, transactions are hashed and used as input for the next transaction. This results in a clear and linked sequence of transactions that cannot be changed afterward using the one-sided hash functions. For this, Solana uses a modified version of SHA256, the encryption algorithm that is used in Bitcoin.
High-speed DeFi (decentralized financial services)
Although the network is still in the beta stage, some projects, especially in the field of DeFi, are already building on the platform. In the last few months, more than 50 “market-ready projects” have been started on the Solana platform. Probably the best-known Solana-dApp is the decentralized exchanges (DEX), Serum, and Raydium. In addition, Solana is working with Chainlink on a decentralized price oracle that delivers fresh price data every 400 ms. For more interest in the Solana ecosystem, just visit the Solana website.
Solana offers a promising ecosystem and could become a serious Ethereum opponent with a lot of future potentials.