What Is Solana

What Is Solana

The Solana cryptocurrency has made the news recently because of what its creators claim to be an ability to process transactions in seconds rather than minutes. While Ethereum is able to process roughly 20 transactions per second, Solana aims for 50,000 transactions per second.

The team behind this project calls it “the next generation blockchain” and claims that this new platform would allow users to create decentralized applications (dApps) which are more efficient than what they can do on existing platforms like Ethereum. But what does Solana actually do differently? And what does it mean for our everyday use cases if the previous limits were only around 20 transactions per second? Why should we care about what seems like a relatively small difference in daily use when the impact could be huge? Solana is one of a number of newer cryptocurrencies designed to compete with Ethereum. Like Ethereum, Solana is both a cryptocurrency and a flexible platform for running crypto apps — everything from NFT projects like Degenerate Apes to the Serum decentralized exchange (or DEX). However, it can process transactions much faster than Ethereum, around 50,000 transactions per second.

The team behind this project calls it “the next generation blockchain” and claims that this new platform would allow users to create dApps which are more efficient than what they can do on existing platforms like Ethereum. But what does Solana actually do differently? And what does it mean for our everyday use cases if the previous limits were only around 20 transactions per second?

What does Solana do differently than Ethereum and what does that mean for our everyday use cases?

SOL is used to pay transaction fees and for staking. It also serves as a “governance token,” meaning that holders also are able to vote on future upgrades and governance proposals that are submitted by the community. In short, it can be thought of as a decentralized cryptocurrency which has been adopted by the tech community as the platform for building dApps. However, what makes Solana different from its competitors like Ethereum EOS is what Solana is calling its “proof-of-stake consensus algorithm” that speeds up transactions. So what does this mean for Solana in practice?

What Is Solana

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