Solana (SOL) prices rose on August 27, reaching a milestone of over $85 as traders appreciated a rush of positive foundations. This includes Solana’s possible entry onto Wall Street.
On August 24, the digital asset company Osprey Funds filed with the US Securities and Exchange Commission a first-of-kind Solana fund (SEC). In doing so, the New York company indicated that the SOL markets were institutionally exposed as the token value in 2021 rose by more than 4,300%.
A day later, Pyth Network revealed it would be running on Solana’s blockchain proof-of-stake. The company offers “high-trust streaming data” from trading companies and exchanges, allowing it to cover worldwide market activity without relying on a single source of data.
In order to disseminate market data using decentralized apps on top of Ethereum, Binance Smart Chain, and Terra blockchains, Pyth will utilize the “Wormhole” cross-chain communication protocol of Solana.
What is Solana?
Solana is a project aimed at solving the trilemma problem of the blockchain. It focuses on constructing a scalable network that is much quicker than any current blockchain and even VISA. By mid-2021, Solana enables 50,000 transactions a second (TPS) and generates new building blocks with 200 validating nodes every 400 milliseconds. Although near to zero network costs are maintained.
Solana utilizes eight unique technology to accomplish its objectives, but this article covers two main technologies – Proof of History and Turbine. Solana is an autonomous blockchain with its own intelligent contracts and native coin, SOL.
The mainnet of Solana has been operational for many months now. The Solana team debuted Serum Decentralized Exchange in 2020. It’s constructed on the top of the Solana network which enables the main blockchain to be quick and reliable. Other DeFi projects like Raydium and Bonfida contribute more projects like O3Swap and SolStarter to Solana’s development.
As one of the world’s most powerful decentralized blockchains, the network contains 200 physically separate nodes supporting more than 50,000 TPS when operating on GPUs.
Unlike Bitcoin, which utilizes the PoW algorithm as a decentralized system clock, Solana uses the Proof of History approach. You may construct historical records that show that an event happens at a certain point in time. The method is a verifiable delay function with high frequency. This function has to be evaluated with a certain amount of consecutive steps.
A unique hash and count may be confirmed openly and effectively for transactions or events that are assessed. The count lets us know when each transaction or event happened and works as a cryptographic time stamp. There is also a cryptographic clock in each node to monitor the time of the network and the sequence of events. This enables high performance and more efficiency in the Solana network.
Ethereum remains a stronger network than Solana with over 7,000 nodes and 90,000 validators. But more and more projects have lately begun to demonstrate confidence in Solana. Kin’s ecosystem has moved to Solana in 2020 with more than 30 million accounts. This year, Solana spent over $100 million to enable its growth in China’s markets.
How do you feel about Solana’s massive growth?