Things you must know about Solana before investing

Things you must know about Solana before investing

With the advent of blockchain technology, you will find more and more cryptocurrencies popping up. However, not every currency is worth your attention because many currencies have not performed well since their initial offerings. 

Besides the most popular bitcoin and Ethereum, Solana (SOL) is gaining popularity.

Consequently, you can easily find Solana on any reputable crypto exchange platform.

It is a decentralised blockchain that was built to host scalable applications. Solana blockchain gives developers and programmers the freedom to make decentralised applications for many purposes.

Here are some more things you must know about Solana before investing in the currency. 

The currency grew by 13000% in 2021

The year 2021 proved to be the most fruitful for Solana Investors. Due to its growth, many investors choose to HODL this cryptocurrency. 

It is a popular alternative to Ethereum

Ethereum was the first blockchain technology that introduced smart contracts. But, people have been looking for an alternative to Ethereum for a long time now, and Solana proved to be a worthy alternative. 

The main concern with Ethereum is that blockchain technology is becoming overused, and the prices of transactions of Ethereum are increasing. So, Solana proved to be a more convenient and cost-efficient platform when compared to Ethereum. 

If you are interested in buying smart contract cryptocurrencies, Solana (SOL) is arguably the best option. However, to make the best decision, you must read the white paper on cryptocurrency and compare its pros and cons.

The fastest crypto

Solana is the fastest cryptocurrency globally, and it is one of the many reasons that attract developers and investors to this token. The currency can support up to 50,000 transactions per second, whereas its main rival, Ethereum, can only support 15 to 45 transactions per minute. 

Solana is giving tough competition to other cryptocurrencies, but it is also faster than the Visa payment as it can only facilitate 24,000 transactions per minute. 

A different blockchain technology

Blockchain technology eliminates intermediaries like banks or governments to facilitate transactions to keep them authentic and free from fraud. Bitcoin uses a proof of work model wherein it takes advantage of a series of network validators, leading to immense computing power. So, creating false records is virtually impossible because replicating a high computing power like BTC’s blockchain is impossible. 

Solana uses the proof of history validation model, which is much more efficient than any other model. In this method, a historical record of each transaction in a cryptographic to maintain the ledger of transactions and authenticate each transaction. 

There are more than 300 applications based on Solana

The number of successful applications running on Solana is one factor that attracts people to invest in it. There are more than three hundred applications based on Solana. From decentralised finance projects and games to NFTs, many such applications make Solana even more valuable and attractive. Solana may not have the first movers advantage, but it slowly paves its way to the top. 

Solana tokens are here to stay owing to their vast array of use-case, making them an excellent long-term investment option. 

Jordan Fried

Jordan Fried

Jordan Fried, who has built some of the most valuable crypto companies in the world today and helped thousands of people get exposure to blockchain assets, pulls back the curtain to help you build wealth quickly and securely.

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