If you are new to crypto, then maybe Solana has gone under your radar, but not to worry, we are here to shed some light on this fast-emerging project that is taking on the biggest names in crypto.
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Why Revix Regards Solana as the Top-Performing Cryptocurrency of 2021
Sol, the cryptocurrency linked to the Solana network, has jumped into the world’s top 10 largest cryptocurrencies amid optimism that its blockchain infrastructure could be a long-term competitor to ethereum.
Solana’s token has tripled in just a few weeks and now has more than $35bn in market value. Optimism has grown thanks to Solana’s faster transaction speeds and lower transaction costs when dealing in the world of decentralized finance (DeFi) and digital collectibles — areas in which ethereum dominates.
What is Solana?
Solana is a blockchain network that seeks to develop an ecosystem of cryptocurrency-powered products and services. It is different from bitcoin but offers similar features to ethereum.
It differentiates itself from Ethereum’s network by providing faster transaction times, lower fees, and a programming capability that focuses on flexibility.
Solana can handle more than 50,000 transactions per second, more than ethereum and bitcoin combined, and at a fraction of the cost. Developers can also write and launch customizable applications in multiple programming languages on the Solana blockchain.
Sol is used to paying for executing programs and sending transactions.
So is Solana Used For Payments?
No, just as stocks in the technology sector operate differently from those in the oil and gas sector, you get cryptocurrencies that do different things.
The term cryptocurrency is confusing since there is a preconceived notion of what a currency is and what it can and cannot do. Many cryptocurrencies aim to achieve different objectives, and only a small number of them are trying to become digital cash, replacing the rand and US dollar.
Cryptocurrency projects generally fall into one of two big categories. They are either purpose-built and designed for a specific function — as bitcoin or litecoin, which was specifically designed as alternative payment systems and stores of values, or, as ethereum or Solana, they can be more open and general in their functioning and can be applied to a wide range of uses.
By acting as a sort of blockchain-based operating system for building decentralized applications — which are basically just blockchain-based versions of regular apps, like the ones you get on your phone — these cryptocurrency networks can act as a foundation for many other applications to be built on top, for example, internet-enabled email, video calls, and social media. These multipurpose cryptos are looking to achieve the same thing.
What Makes Solana Unique?