Cryptocurrency has many coins such as Bitcoin, Ethereum, Solana, DogeCoin, etc. In this case, we will talk more about Solana. It is a blockchain that is focused on transaction speed.
Solana commonly known as initial SOL was discovered in 2017 by Anatoly Yakovenko from Solana Laboratory. Its purpose is to overcome the transaction speed without any effect on the decentralization or even security. Solana Blockchain uses a unique method named Proof of History (PoH), to manage thousands of transactions per second.
How Does Solana Work?
Solana has applied a very specific way to create a system that is purposed to determine the transaction time called Proof of History. In terms of cryptocurrency, controlling the transaction order is a crucial thing.
Bitcoin has another way to do that, it uses bundling transactions into the blocks with a single time stamp. Each of the nodes has to validate the block to make the combination with other nodes.
This process will take more time for nodes to confirm toward the whole network. While Solana has a different way to make it faster. Let’s have a look.
What Is Proof Of History (Poh)?
All Solana transactions are combined by using the SHA256. This function needs input and will make a unique output which is a very difficult way to predict. The output will be used for the next hash or combination.
This combination process will produce a very long and unbroken chain of transactions. Hashing process needs a period of time to finish. Validation can be verified easily by knowing how much time has passed.
Solana uses Proof of History to make a super speed of transactions, while Bitcoin uses the Proof of Work method. PoW is used commonly for mining the cryptocurrency that is purposed to validate transactions and mine new tokens. Using the latest version of PoH will reduce time confirmation for a new block.
PoW needs nodes on the network to be able to provide a piece of evidence that the nodes have expended computational power. The mechanism for Proof of history is not consensus. The nodes just need a little time to validate the transactions.
Read also : What Is Polygon (Matic)
Solana’s Key Features
Solana’s team members have improved eight cores as their specific technical features that help the blockchain appropriate to the capabilities of the system. However, Proof of History becomes the most important one. Here are some other features:
- Tower BFT (Byzantine Fault Tolerance)
The term was born from a hypothetical known as the Byzantine Generals Problem. This is one of the computer systems that can continue the operation even if some of the nodes act maliciously or fail.
It is a mechanism that uses a multi-layer of block propagation. It is purposed to broadcast the transaction toward all nodes by having less amount of double messages. It will divide itself into small nodes called a neighborhood.
- Gulf Stream
Gulf Stream is a mechanism for cryptocurrency nodes that purpose to store information on unconfirmed transactions. It seems like a waiting area for the nodes that have not been in the block yet.
It is a parallel smart contracts runtime that can process over ten thousand contracts. It uses as many cores available to the validators.
It is a specific process where the flow of input data for the next process has different hardware. In a simple way, it is like a washer and dryer machine. Washing must be done before drying which is used by a separate unit of the machine.
Cloudbreak is a data structure that is efficient for reading and writing at the same time across the network.
It distributed a huge ledger store for petabytes of blockchain data storage.
Those crucial features will create a super-high performance network where it can operate over thousands of transactions in a second. By having a compatible crypto wallet, you can store your tokens where the validators will process your transactions. Validator and token holder will share some rewards which will be in the network’s interest. By May 2021, Solana had owned more than 900 validators.
What Is SOL Token?
It is Solana’s utility and native token. SOL token can transfer nodes within the Solana blockchain ecosystem to validate the output and also run on chain programs. Solana token was established in March 2020 and recently become one of the top 10 cryptocurrencies in market capitalization. In simple words, it is a public blockchain platform with smart contract functionality.
SOL uses the Solana Program Library (SPL) protocol. It is the fungible token standard of the Solana blockchain. The token can be stored in a compatible digital wallet. Solana token has two main purposes: (1) for paying the fee of a transaction while using the smart contract or even network. (2) for staking the tokens as it is part of the Proof of Stake mechanism.
How To Store SOL?
You can save your Solana Tokens on some trusted crypto wallets such as:
- Phantom wallet
With Phantom, you not only access and create your Solana wallet and also swap tokens but you stake your SOL and view your NFTs. You can just download and install it at https://phantom.app/.
- Trust Wallet
The most trusted and secure crypto wallet. You can buy, store, sell, exchange, and earn crypto. More than 25 million people have used this digital wallet. To download and install the app, just head over to https://trustwallet.com/.
It is the best digital wallet for beginners according to Investopedia. You can send, receive and exchange more than 100 crypto coins. To download it, please visit https://www.exodus.com/
Solflare is a secure and powerful Solana wallet. The safest way to explore Solana, you can buy, store, swap tokens, and access Solana from your mobile or any device. Visit https://solflare.com/download to download and install the app.
- Math Wallet
MathWallet is a multi-chain wallet that supports 60+ blockchains and is used by more than 1.2 million users. Math Wallet app is available for iOS and Android users. It can be used to send and receive SOL tokens. To download and install, head over to https://mathwallet.org/id-id/.