The Solana blockchain has been able to make a place of choice in the universe of cryptocurrencies thanks to its exceptional speed and its extremely low transaction costs. While other blockchains are struggling to manage growing volumes of transactions, Solana is distinguished by its innovative architecture and its performance. But how does it work, and why does it attract attention so much? In this article, we will in depth this blockchain, its advantages, its challenges, as well as its long -term potential.
Table of contents
What is Solana ?
Solana story
Solana was founded in 2017 by Anatoly Yakovenko, a former Qualcomm engineer, with the aim of solving the scalability problems encountered by existing blockchains like Ethereum and Bitcoin. Yakovenko found that one of the biggest challenges for blockchains was the way they manage the horodatages and the order of transactions. To improve this, he introduced a new architecture based on technology called Proof of History (POH). Solana 's main network was launched in March 2020, and since then it has become a platform prized by dApp S (decentralized applications) and cryptocurrency investors, especially for its exceptional performance.
Fundamental principles
Solana 's success is mainly based on its ability to offer a solution to scalability problems encountered by other blockchains. Networks having to choose between security, decentralization and speed (the Blockchains trilemma), Solana combines several innovative technologies to offer fast, secure and low cost transactions.
Proof of Stake (POS) and Proof of History (POH) are the two pillars that ensure the speed of the network while guaranteeing its safety. The POS selects validators according to the number of stake tokens, and the POH allows you to organize events over time, which facilitates the treatment and validation of transactions.
Technology behind Solana
Proof of History : The heart of Solana
The major innovation that differentiates Solana from other blockchains is its Proof of History (POH) . This technology is designed to solve one of the most complex problems of blockchains: the order of transactions and the passage of time. In traditional blockchains, such as those based solely on the Proof of Work or the Proof of Stake , time is a factor that is difficult to manage because each node has its own horoditing and there is no reliable universal reference.
The Poh of Solana creates a verifiable cryptographic proof of the passage of time and the order of events, even before these were validated by the network. This is done thanks to an cryptographic hash algorithm that works continuously, generating a sequence of unique hasd. Each hash is based on the exit of the previous hash, thus creating a continuous chain which proves that a certain time has passed between each transaction. Thus, POH makes it possible to considerably reduce the time to validate transactions, because the order of events is already established when they are subject to blockchain.
However, it is important to note that the number of transactions per second (TPS) announced by blockchains, including Solana , can be inflated by the fact that is used for reference types of transactions that are not very gourmet in resources. The effective average on the Solana is around 750 TPS , which remains much higher than Ethereum with 13.5 TPS, Arbitrum around 21 TPS, and Polygon at around 36 TPS. Solana therefore has the strong point of the speed of transactions.
Selection of validators: a decentralized mechanism
The validators' selection process on Solana is based on a decentralized and automated mechanism that ensures that the network remains secure while maintaining great decentralization. Unlike the Proof of Work (POW) , which requires significant computing power, the POS attributes the validation rights according to the quantity of soil that each participant (validator) has staked in the network.
How are the validators chosen?
The process takes place in several stages:
- Stoking of the Estorms Floor : Network participants can choose to become validators by locking (or stakant ) a certain amount of soil, the native cryptocurrency of Solana . The more a stake stake validator of ground token, the more likely it is to be selected to validate the next block.
- Election of validators : the election of a validator to produce the next block is carried out in a pseudo-random depending on several factors, such as the quantity of staked soil, the history of the validator and its past behavior. This process is managed by a decentralized algorithm , which prevents any centralization or manipulation.
- Role of the POH in validation : The Proof of History plays a crucial role as a verifiable chronological register which documents the exact order of events in the blockchain. This system allows validators to focus only on the validation of the blocks, because the order of transactions is already guaranteed. This considerably minimizes the necessary communication between validators and reduces consensus time.
- Consensus and purpose of transactions : Once selected, validators must check the transactions, create new blocks and submit their cryptographic signatures to the network. For a block to be validated, a super-majority (two thirds) of the validators must reach a consensus. If a validator does not respect the rules of the network, an economic sanction , also called Slashing , can apply, which encourages each participant to act in an honest way.
Ecosystem and adoption
Since its launch, Solana has experienced rapid growth, with more than a million knots distributed worldwide, covering key regions such as Europe, North America and Asia. Its global coverage makes it an ideal network for international projects.
partnerships with major players in the blockchain industry, such as Serum (a decentralized exchange), Mango Markets, or Phantom (a portfolio dedicated to Solana Solana Solana 's attractiveness for developers seeking to exploit speed and low transaction costs. Solana 's position as an essential platform in the blockchain ecosystem.
Solana : a monolithic blockchain
Unlike Ethereum , which needs Layer 2 solutions to manage scalability or Near Protocol that uses sharding , Solana succeeds in maintaining high scalability and low transaction costs without resorting to these techniques. Solana is a monolithic blockchain, which means that it combines all essential features (consensus, execution, storage) within a single layer. This simplifies the architecture of the network and improves its efficiency.
Solana vs Ethereum : a comparison
Speed and costs of transactions
One of Solana 's strengths is its speed. The blockchain can treat up to 750 transactions per second on average, which is much higher than Ethereum. This speed is accompanied by very low transaction costs, often between 5 and 7 cents per transaction. In comparison, Ethereum has average costs of 11 to 13 dollars, which can even reach hundreds of dollars during periods of high congestion of the network. This makes Solana a much more affordable option for users who wish to perform frequent transactions without breaking the bank.
The advantages of Solana
Transaction speed
Its speed is a major asset, with an ability to treat up to 65,000 transactions per second in theory. However, these are figures inflated by special testing environments with very inexpensive types of transactions, the effective average is around 750 TPS, which remains extremely competitive.
Reduced costs
The transaction costs are remarkably low, oscillating between 5 and 7 cents per transaction. This strongly contrasts with the high costs ofEthereum, making Solana much more accessible to a large audience, especially for current uses such as micro-transactions or dAppS with low added value.
Expanding ecosystem
Its ecosystem is growing, with many decentralized projects and applications ( dApp S) which regularly emerge such as Kamino (loan and loans), Jupiter and Raydium (Dexs) or Drift (Dex and Decentralized Trading). This expansion is supported by high scalability and low costs in the network, attracting an increasing number of developers and users.
The challenges faced by Solana
Risks of centralization
Despite its decentralized architecture, Solana faces concerns about the concentration of validators . In a Proof of Stake (POS) , the selection of validators is partly based on the quantity of staked tokens, which promotes actors with large quantities of soil. This can lead to centralization of power between a few large validators, which poses several risks:
- Increased vulnerability to attacks : an overly centralized network becomes an easier target for attacks, including so -called censorship or takeover by a small group of validators.
- Breakdowns and instability : if a limited number of validators controls a large part of the nodes, a technical failure or a connection problem could lead to major interruptions in the operation of the network.
To counter this risk, initiatives are underway to encourage a broader and diversified participation of validators through incentive programs and better distribution of rewards.
Safety problems and breakdowns
Solana has also encountered several challenges in terms of reliability . The network, although renowned for its speed and efficiency, has undergone several notable breakdowns that have raised concerns about its ability to manage heavy transactions.
One of the most striking incidents occurred in September 2021 , when the network underwent a 17 -hour due to a massive influx of transactions generated by bots. This influx overloaded the nodes of the network, forcing them to slow down and, in some cases, to stop their activity. This kind of overload reveals the limits Solana 's current infrastructure , especially in extreme demand situations.
Similar events reproduced, especially in December 2021 and January 2022 , where overloads and software bugs caused temporary interruptions of the network. These breakdowns highlight the need for:
- Strengthen the robustness of the network to prevent bots attacks and other malicious behaviors.
- Improve the software infrastructure to avoid future interruptions and guarantee continuity of service.
Current solutions
Solana does not ignore these challenges and has already taken measures to remedy them. The team has notably worked to improve network resilience in:
- Optimizing the validation mechanisms of the block chain by reducing dependence on large validators.
- Setting up protections against bots to avoid attacks by overloading.
- Regular update of the code to eliminate technical flaws likely to cause breakdowns.
These efforts aim to strengthen Solana's stability and safety, allowing it to continue to grow while minimizing the risks associated with centralization and technical breakdowns.
Notable projects on Solana
Jupiter
Jupiter is a Dex (decentralized exchange) aggregator on Solana which allows users to find the best exchange rates for their tokens swaps. With its speed and efficiency, Jupiter has become a popular tool for active traders on Solana.
Raydium
Raydium is an Automated Market-Making protocol (AMM) on Solana . It allows fast and low cost exchanges while offering farming and stuking options. Raydium is integrated into Serum, another major Solana , which improves its liquidity and efficiency.
Drift Protocol is a decentralized trading platform built on Solana , specializing in perpetual contracts. It is distinguished by its speed, its low costs, and its single order model called "Virtual AM" (VAMM), which improves the liquidity and the efficiency of transactions. Drift offers an intermediary experience, while guaranteeing rapid execution thanks to Solana , thus attracting traders in search of performance and safety in the DeFi .
Migration of big projects to Solana
Recently, several large -scale cryptos projects have decided to migrate to Solana . For example, Render , a decentralized rendering project, has left Ethereum in order to benefit from its speed and its low transaction costs. Likewise, Helium IoT connectivity network , has also chosen Solana to improve its efficiency and scalability.
NFTS and memecoinon Solana
Growing popularity of NFTS on Solana
Solana has become a popular choice for NFTS (non-Fungible Tokens) thanks to its low costs and speed. The collections of NFTS such as Degenerate Ape Academy and Solpunks were very successful, attracting creators and collectors from around the world.
The rise of the memecoinon Solana
Solana has also seen a strong increase in the memecoin, cryptocurrencies often based on internet memes. Although these assets are generally of low added value, their popularity illustrates the growing interest as a platform for a variety of projects, serious or not.
Stuking on Solana
How does Staking work?
Stoking allows holders of the Sol cryptocurrency to participate in the validation of transactions by locking them in the network. In return, stakers receive rewards in the form of additional tokens. This process is essential for network security and allows participants to win a passive income.
The benefits of Stuking on Solana
Stoking awards are attractive, with annual yields that can reach 7% or more. In addition, Staking contributes to the decentralization and safety of the network, while providing users with a way to grow their investment.
Invest in Solana
Decentralized portfolios for Solana
To store your soil tokens safely, it is recommended to use a decentralized wallet. These portfolios make it possible to keep total control of your private keys, reducing the risks associated with centralized exchanges. Options like Phantom, Metamask or Exodus are popular choices.
More information here
Conclusion
Solana has established itself as one of the most promising blockchains thanks to its innovative technology, its speed and its low transaction costs. However, the network faces challenges, especially in terms of centralization and security. As blockchain continues to grow and attract major projects, it could well play a key role in the future of cryptocurrencies, while remaining attentive to the improvements necessary to overcome its current weaknesses.
Faq
What is the Proof of History ?
- The Proof of History (POH) is a single validation mechanism which creates chronological evidence of events, allowing the network to process a large number of transactions simultaneously.
Is Solana a good long-term investment?
- Solana has an interesting potential because of its advanced technology and dynamic ecosystem. However, as with any investment in cryptocurrencies, it is important to be cautious and diversifying your assets.
What are the risks associated with Solana ?
- The main risks include the centralization of the network, the technical breakdowns, and the strong competition with other blockchains. It is crucial to remain informed of these risks before investing.
How to buy ground?
- Solana can be bought on popular cryptocurrency exchanges like Binance, Coinbase, and Kraken. It is advisable to use a decentralized wallet to store your tokens.
Why are the memecoinpopular on Solana ?
- The memecoinis popular on this network because of the low transaction costs and the speed of the network, which allows users to exchange them frequently without paying high costs.
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Yohan Uzzan
Training engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future ahead of it, I participate in its democratization by developing Crypternon.
