Solana is a blockchain platform that includes proof of history (PoH) technology to improve speed without sacrificing security. Because of its PoH technology, Solana is one of the fastest blockchains available, with an average processing speed of 2’700 transactions per second. The native cryptocurrency of the Solana network is the SOL token, which is currently in the top ten of all cryptocurrencies for market capitalization.
Use cases of SOL
- Transaction fees. The SOL token is used to pay transaction fees on the Solana network, which are remarkably low thanks to the high throughput of SOL. Transaction fees on SOL average $0.00025 per transaction.
- Staking. Like many other cryptocurrencies, holders can stake their SOL for rewards, governance voting and gain eligibility to become a validator.
dApps and smart contracts. Similar to Ethereum, SOL uses smart contracts that support decentralized applications, and there is a tremendous variety of dApps that exist in the SOL ecosystem.
- Creating currencies. Many dApps within Solana have created their own currencies, which power their projects. SOL is an attractive blockchain for this use due to its scalability.
Why SOL is getting attention
- ETH alternative. Solana is an increasingly popular alternative to Ethereum thanks to its lower fees and faster speeds.
- Hub for NFTs. With lower congestion than other blockchain platforms, SOL could become a standard for those looking to build and host an NFT marketplace or explore gaming applications in crypto.
- DeFi projects. The Solana ecosystem houses a wide variety of DeFi projects, such as decentralized exchanges (DEX), lending protocols, crypto wallets, investment platforms, and payment systems.
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