Solana is an open-source project based on blockchain technology that supports an array of decentralised finance (DeFi) solutions, which include decentralised applications (DApps) and smart contracts. Solana uses a consensus algorithm that combines proof-of-history (PoH) and proof-of-stake (Pos). This allows the network to perform 50 000 transactions per second compared to about 15 transactions for Ethereum (before ETH2 upgrade). Solana has higher efficiency than other models since it’s an open-source initiative, meaning more nodes are in use. Since Solana has high speeds and low fees, developers hoped it could compete with centralised payment processing platforms like Visa.
Solana’s native coin is SOL, used to pay transaction fees and for staking. Participants have to stake their own SOL to become validators, computers that secure the network. They do this in return for a reward or a fee. SOL is also a “governance token”, which means holders are able to have a voice in the form of a vote on future upgrades and governance proposals submitted by the Solana community. SOL is available to buy and sell on numerous platforms, including Banxe. As of today, the market capitalisation for SOL is $12,416,558,099.
Solana was created by Anatoly Yakovenko and Greg Fitzgerald as a concept in 2017. It launched in 2020 as Solana Labs and quickly saw an impressive price gain. It has since climbed to be one of the top 10 highest cryptocurrencies on the market despite a hacker attack in 2022.
Solana’s mission is to support high growth and high frequency blockchain applications and to democratise the world’s financial systems.
Yes, on August 3rd, 2022 it was announced that Solana was targeted by hackers. This affected 9 231 Solana wallets and a total of $4.1 million. It was suggested that the issue was related to certain wallet software as opposed to the blockchain itself.
There are 353 million Solana in current active circulation. This means that they have been issued however there is an unlimited supply. The amount that is issued each year is based on the year-to-year inflation rate and can vary. Initially when the coin launched, there was a maximum supply of about 500 million but since then the blockchain erased or burned 11 million of them.