Solana (SOL) is one of the biggest coins in the crypto market. It is ranked 5th on coinmarketcap. But it is a wonder what makes the coin so special? And will it be able to overcome the challenges presented to it and become a revolutionary that will be adopted in general everyday use?
Solana (SOL) is an open-source project which utilizes blockchain technology to provide decentralized finance solutions as efficiently as possible. The blockchain architecture of Solana is based on the Proof of History (PoH) – a proof for verifying order and passage of time between events. The PoH algorithm is used to encode trustless passage of time into a ledger – an append-only data structure. If they are used with Proof-of-Work (PoW) and Proof-of-Stake (PoS) algorithm, they can decrease the messaging overhead in a Byzantine Fault Tolerant (BFT) replicated state machine that results in sub-second finality times.
It was created by the Solana Foundation in 2017 and is based in Switzerland. The central objective of the coin is to create Decentralized Finance (DeFi) that is accessible to people around the globe and facing the common obstacles that are faced by the users of the technology. Solana also feels the need to have its innovation have a stake in the market. It believes that Blockchain is an implementation of a fault-tolerant replicated state machine. Most of the blockchains that are available don’t depend on the time factor or make a weak assumption that miner’s capabilities to keep time. Each of the nodes in the network most depends on their own local clock without knowledge of any other participants clocks in the network. The lack of a trusted source of time means that when a message timestamp is is used to accept or reject a message, there is no guarantee that every other participant in the network will make the exact same choice. The PoH presented here is designed to create a ledger with the verifiable passage of time, i.e. duration between events and message ordering.
Price Movement – Solana (SOL)
At the time of writing, the value of SOL, the utility token of Solana, is $210.02. This is a 12.52% increase over the past twenty-four hours although the low of the day has been $182.37. The current trading volume of the coin is $2,460,129,010, a 64.73% increase over the past twenty-four hours. Most analysts are predicting that the value of SOL should be around $190 and the market correction is bound to come much sooner rather than later. It is quick trading!
