Solana has been a trending matter because of the successive weeks of value will increase seen by its SOL token. On the time of writing, SOL traded at round $207, which is an 11,400% surge from lower than $2 again in January. At its current price, Solana sits among the many prime 10 cryptocurrencies by market capitalization with about $60 billion, claiming the sixth spot from Dogecoin (DOGE), in accordance with Cointelegraph Markets.

One of many doubtless catalysts of this bullish momentum is funding from traders led by Andreessen Horowitz and Polychain in June. Solana secured $314 million, which can be used to additional its expertise within the decentralized finance (DeFi) area. Notably, the funding took the type of SOL coin purchases moderately than conventional fairness shares.

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One other key purpose for Solana’s SOL value increase is the announcement of its fourth hackathon event slated for Oct. 8. Hackathons are focused at builders whose initiatives are entered into a contest for an opportunity to win money prizes and seed funding alternatives. This was perceived as a optimistic transfer for Solana, because it might assist obtain wider adoption of its expertise.

So, with Solana making headway, pundits can’t assist however examine it with the same programmable blockchain: Ethereum. Many have gone so far as to say that Solana might be an Ethereum killer, competing with Polkadot, Avalanche and Binance Good Chain.

What’s Solana?

Solana is a layer-one blockchain community that may implement sensible contracts. Based in 2017 by Anatoly Yakovenko, a former Qualcomm senior workers engineer supervisor, Solana is billed as the answer to the scaling problems with Bitcoin and Ethereum. Two years after its founding, Solana was capable of land $20 million in a Series A funding round led by Multicoin Capital.

Whereas Bitcoin (BTC) is broadly accepted as a peer-to-peer type of cash, Ethereum, however, is the platform for turning virtually all the pieces peer-to-peer. Solana is in the identical league as Ethereum, with its sensible contract capabilities and layer-one infrastructure, but it surely brings alongside a number of different propositions.

Ethereum remains to be the best choice for constructing decentralized functions (DApps) and deploying sensible contracts, however it may’t be denied that it’s plagued with legacy points that it is making an attempt to refine over time. On account of an absence of scalability, customers often face notoriously excessive fuel charges. Though its transition to proof-of-stake (PoS) is already in movement — and is estimated to scale back such charges by an elevated transaction throughput by making use of shard chains — it isn’t anticipated to be absolutely merged to Ethereum’s mainnet till late 2021 or 2022. It is because the Beacon Chain that may coordinate all of the shards remains to be underneath testing regardless of going stay in December 2020.

Alternatively, Solana already has a PoS construction baked in as its consensus mechanism. Nevertheless, the important thing innovation is in its proof-of-history (PoH) protocol. Below a PoS system, it could be tough for validators to seek out chronological order in incoming blocks of transactions. PoH’s manner round that is by establishing a historic report that cryptographically verifies the passage of time between two occasions.