Solana (SOL) 101: Unleash the Power of Cheap Fees

What is Solana and How Does It Work?

Solana’s biggest draw is its fast and cheap transactions. It has the potential to process 65,000 transactions per second. However, transactions are completed with small gas fees, averaging around $0.00025. The blockchain uses a unique consensus mechanism called “Proof-of-History,” a hybrid algorithm to verify transactions, allowing the network to operate more efficiently.
Solana’s blockchain has smart contract capabilities, making it ideal for developers to create decentralized applications (Dapps). Launched in 2017, the project was released in 2020 and quickly became a competitor to major chains such as Ethereum and Cardano. Users can currently access features such as Dapp creation, NFT minting, DeFi, and gaming platforms in a decentralized, transparent, and fast blockchain.
The ecosystem includes smart contracts, NFTs, DeFi platforms, and games. However, the most exciting feature of Solana is Solana Pay, which enables merchants to accept payments directly from customers through the blockchain. Businesses can trade while avoiding high gas fees.
The blockchain is designed for scalability and achieves this through its unique hybrid protocol, using both the “Proof-of-Stake” mechanism popular among other blockchains and the proprietary “Proof-of-History” algorithm. “Proof-of-History” is a significant breakthrough in blockchain history, enabling the network to operate at extremely high scalability.

What is SOL? Is It a Good Investment?

SOL coin is the native cryptocurrency of the Solana blockchain, used to pay transaction fees on the network. For example, if you want to develop your own Dapp and run smart contracts, you will need to pay with SOL coin. In addition, the altcoin can also be used for staking purposes. Users who do this can lock their SOL coins and have a chance to earn passive returns.
NFT marketplaces and DeFi platforms in the ecosystem have gained significant popularity, driven by the project’s high speed and low fees. Additionally, the project has partnerships with many leading companies. The project is also launching a smartphone called SAGA, which will work with blockchain technology and be a first in its field.
In 2021, SOL coin gained over 10,000% in value, attracting attention. However, the 2022 bear market caused SOL’s price to fall like other cryptocurrencies. Additionally, the altcoin was negatively affected by a series of hack attacks on the blockchain. These attacks raised the question, “Is Solana not secure?”