Last September, Coinbase announced 17 assets it could list if they meet certain criteria. Today I will try to give information about Solana, which is one of these projects and contains very technical terms.
What Is Solana?
Solana has built an extremely fast, secure and scalable blockchain network for decentralized Apps (dapp’s) and companies that process 50 thousand transactions per second.
In addition, Solana is a project based on Verifiable Delay Function. That means they’re building a new blockchain with the data structure that they call Proof of History, which encodes the passage of time as data.
This system greatly reduces the messaging load among nodes in the network, and also greatly resolves the current scalability issues faced by other blockchain protocols.
It also allows the creation of a highly efficient blockchain without the need for side and multiple chains. Thus, up to 710 thousand operations per second can be performed on 1 gigabit network.
Scalability without Sharding
The project said: “We do not find it right to put security at risk. Solana takes the existing blockchain architecture and algorithms and improves them rather than superimposing additional complexities such as sharding. We believe in this so much that we’ve called our podcast #nosharding.”
What else is in the project?
Decentralized Exchanges
Imagine a decentralized trading system that never touches users ‘ private keys. The entire order book securely copies to blockchain, preserving all of Nasdaq’s performance features.
Solana’s number of transactions per second (TPS) of 710 thousand is appropriate for Nasdaq’s trading volume. They make this possible by using atomic cross-chain operations combined with tradable swaps.
Payments
Payments are the sine qua non of blockchain, but adoption and scalability are the biggest obstacles to that. Solana’s transaction costs $0.000001 and will be very fast.
Bitcoin’s trading volume in its current form, with 3 payments per person per day, is enough to serve only the population of Berkeley (California). The project claims it can do much better. Solana may have laid the foundation for the payment platform that blockchain promised.
Distributed Web Services and storage
Cloud storage and web services may be decentralized, encrypted, impermissible, and secure in the future.
Decentralized file storage systems have the potential to eliminate high price growth and human capital costs, and have the potential to set new unit economics standards for distributed data storage. Solana offers a realizable way for this future to be real.
Distributed Advertising Exchanges
If ads are bought and sold on a single, transparent platform, a wide range of data can emerge: tracking and measurement, ratings and industry reporting. These business models require nodes to keep a much more comprehensive ledger than day-to-day operations.
At the same time, therefore, a highly scalable chain is needed to support this future of advertising technology (Google is running 340,000 ads per second).
