What is Solana? – Small Business Trends

Since the explosion of cryptocurrencies, both investors and cryptocurrency enthusiasts have created a niche market for digital currencies that are used as digital money and are making waves in the digital economy.

In fact, there are over 19,000 individual cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, Binance and Solana in the market today that are traded on dozens of blockchain platforms.

Blockchains are online databases distributed among computers running blockchain software. They minimize the need to rely on centralized authorities such as banks, auditors, accountants, regulators and even governments. Instead, they rely on a global network of peers to enforce the rules of trade and exchanges.

Interestingly, no entity owns or controls the databases. Anyone can access the database, provide proof of ownership and transfer cryptocurrencies by using crypto wallets.

What is Solana?

Similar to Ethereum, Solana is both a cryptocurrency and a flexible platform for running decentralized applications (dapps). Launched in March 2020, Solana uses SOL tokens as its native cryptocurrency and can be used to pay its transaction fees, conduct cryptocurrency business, and more.

It works to improve scalability with the help of Proof-of-History (PoH) and Proof-of-Stake (PoS) consensus algorithm. It claims to be able to support 50,000 transactions per second without sacrificing decentralization. Thanks to its fast processing, it reduces congestion and allows processing fees to remain low.

Price Solana

Solana’s current price reached $41.03 on Tuesday, a decrease of 3.98% in the last 24 hours. However, its value is up 16.51% over the past week after seeing marginal gains and losses of no more than $2 last week, indicating investor confidence, according to Coinbase.

Solana is currently 84.22% below its all-time high of $260.06 that was set in November 2021. Solana currently has a market cap of $14.2B with a circulating supply of 346 .5 million SOL coins. Users can buy, send and receive Solana through various crypto exchanges and wallets.

Can I mine Solana?

Solana cannot be mined as it does not use a mining consensus mechanism. Instead, Solana uses staking where cryptocurrencies verify their transactions and allow participants to earn rewards from their holdings.

This means that through the cryptocurrency staking process, users will pledge their cryptographic assets to support a blockchain network and confirm transactions by acting as a validator. And when new cryptocurrency coins are minted, they are distributed as rewards for the staking service.

The amount of Sol Tokens you get as a reward will depend on the number of transactions you process and the amount of SOL Tokens you have staked.

How to extract Solana on PC

You can bet Solana with a computer, but you will need a good and uninterrupted internet service with at least 300 Mbit/s, you will also need a computer with the following minimum specifications:

  • CPU: Supports x86-64; Intel Ice Lake, or newer (Xeon or Core series); AMD Zen3 or newer (EPYC or Ryzen); Simultaneous multithreading disabled (Hyper-Threading on Intel, SMT on AMD); Prefer single-threaded performance over higher core count.
  • Storage: A 1TB NVMe SSD (as it should be reasonably sized to handle blockchain growth).
  • Memory: 64 GB DDR4 ECC.
  • System: Linux Kernel 5.16 or later

You can bet ONLY by moving your chips to a wallet that supports participation. There are many wallets that provide steps to create a stake account and delegate.

Is Solana a good investment?

There is money to be made in cryptocurrencies, in fact, the global cryptocurrency market in just a decade has grown exponentially, with the industry projected to reach $1.9 billion by 2028. In recent years, Solana has has become one of the most popular blockchains, especially for its support for Play to Earn (P2E) game projects thanks to its smart contracts.

Solana built its platform using Ethereum technologies that provide users with services such as NFT, metaverse, DeFi applications, meme coins, P2E games and more. It remains one of the fastest blockchain networks and is popular among investors. However, since blockchains are relatively new investments, susceptible to volatility and scams, and not scrutinized by legislation, no one can offer guarantees that cryptography and blockchains will be profitable.

The prevailing rule of thumb is that cryptocurrency investments should have a diverse portfolio and be long-term. Purchases should be based on market cap, volume of coins in the market, and be aware of market trends and what purposes the particular cryptocurrency serves.

Image: Solana

More at: Cryptocurrency

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