What is Solana (SOL)? Complete set of SOL cryptocurrency
Description of What is Solana (SOL)? Complete set of SOL cryptocurrency
What is Solana? Learn about Solana's mechanics highlights and SOL coin tokenomics details right here!
Today's article about Solana and SOL coin will give you all the details about:
- What is Solana? The outstanding features of Solana Blockchain.
- Detailed information about tokenomics of SOL coin: Key metrics, distribution (allocation), application (use case),…
- Where to buy SOL? Store on which wallet?
- How to earn and obtain SOL? Should I invest in SOL coins?
What is Solana?
Solana is a high performance open source blockchain platform with scalability up to 700,000 TPS (Transactions Per Second) and 400ms block time. Solana does not need to apply complex solutions like Sharding (database fragmentation) or Layer 2.
Highlights of Solana's consensus mechanism
To get high scalability, besides Proof of Stake , Solana had to combine the following 8 functions:
- Proof of History (PoH) Solution: The consensus algorithm verifies the order and time between transactions, which reduces the load on network nodes (nodes) during block processing by providing a means of encryption Time on Blockchain .
- Tower BFT Consensus Mechanism: A PoH version of the PBFT consensus mechanism that focuses on providing a state machine copy that is tolerant of Byzantine failures (malicious nodes). This algorithm is designed to work in asynchronous systems and is optimized for high performance.
- Turbine Blockchain Transfer Protocol: By dividing data into smaller units, this protocol makes it easier for data to be transmitted to every network node inside the blockchain. This helps Solana solve bandwidth problems and increase the ability to settle transactions faster.
- Gulfstream Mempool-Less Transaction Relay Protocol: Facilitates receiving and forwarding transactions even before the next set of blocks waiting for confirmation on Solana is complete.
- Sealevel Parallel Transaction Processing Engine: Smart contracts run in parallel to achieve more efficient runtimes for Solana.
- Pipelining Transaction Processing Unit: When there is a stream of input data that needs to be processed in a sequence of steps and there are different pieces of hardware responsible for each step, Pipelining ensures that all parts of the The hardware is always efficient.
- Cloudbreak Horizontally Scalable Storage: Establish a data structure where transactions are processed in a single piece of software that leverages any hardware responsible for indexing data, helping Solana achieve scalability high scalability without the risk of database fragmentation.
- Data Archivers: Allows any network node to copy information from the blockchain according to the space available on their hardware
Detailed information about SOL Coin
SOL is the native coin of the Solana blockchain platform. Here are the tokenomics of SOL coin:
SOL rate today
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Key Metrics SOL
- Name: Solana.
- Ticker: SOL.
- Blockchain: Solana.
- Consensus: Proof of Stake (PoS).
- Consensus Mechanism: Tower BFT.
- Token type: Utility Token.
- Subunits: Lamport (1 SOL = 2 ^ 34 Lamport).
- Block time: 400ms.
- Avg. Transaction Time: 50,000 - 65,000 TPS.
- Token Standard: SPL.
- Max Supply: 1,000,000,000 SOL.
- Initial Total Supply: 500,000,000 SOL.
- Current Total Supply: 488,634,933 SOL.
- Circulating Supply: 272,637,122 SOL.
SOL Token Allocation
Solana's total initial supply is 500 million SOL coins and is allocated in installments below:
- Seed Sale: 16.23%.
- Founding Sale: 12.92%.
- Validator Sale: 5.18%.
- Strategic Sale: 1.88%.
- Auction on CoinList: 1.64%.
- Developers: 12.79%.
- Solana Foundation: 10.46%.
- Community Activities: 38.89%.
SOL Token Sales
Solana raised $25.55M after several rounds of sales between April 5, 2018 and March 23, 2020. Details of each round are as follows:
- Seed Sale: 16.23% of total SOL supply at $0.04/SOL from April 5, 2018, raising $3.17M.
- Founding Sale: 12.92% of the total supply of SOL for $0.2/SOL and raised $12.63M.
- Validator Sale: 5.18% of total SOL supply at $0.225/SOL and collected $5.7M in July 2019.
- Strategic Sale: 1.88% total supply of SOL at $0.25/SOL and grossed $2.29M.
- CoinList Sale: 1.64% of total SOL supply at $0.22/SOL and raised $1.76M through auction.
SOL Token Release Schedule
Solana's initial circulation of 16,350,633 SOL (3.27%) and 11,365,067 SOL (2.27%) were burned and removed from supply.
Thus, Solala will vesting 472,284,300 SOL (94.46%) in detail as follows:
- Sale: 100% SOL vested on 07/01/2021.
- Team: On January 7, 2021, the team's SOL coins will begin to be unlocked with the amount of 31,250,000 SOL, and the remaining ½ of the coins will be vested gradually over 24 months.
- Community: Starting Vesting from May 1, 2020 with 8,000,000 SOL per month and ending on January 7, 2021.
- Foundation: Fully unlocked on January 7, 2021.
Thus, on January 7, 2021, the total unlock volume of Solana (SOL) is 91.47% excluding inflationary rewards.
Note: All figures above are based on Initial Total Supply - 500 million SOL. Max Supply of SOL will reach 1 billion within 10 years.
SOL Token Use Case
SOL Coin will have the typical uses of a blockchain platform such as:
- Fees: SOL will be used to pay fees in Solana's blockchain network such as transactions fee, smart contract fee, etc.
- Reward: SOL coin is used as a reward for Stakers/Nodes to ensure the stable operation of the network.
- Governance: SOL coin will be used for future governance voting.
How to earn and own SOL
Users can Stake SOL on FTX and Solana wallet as above to receive SOL reward. Also can be purchased on exchanges.
Storage Wallet & Exchange SOL coin
SOL Storage Wallet - Coin98 Wallet
SOL is an SPL coin, so you can store it on Coin98 Wallet with the following simple steps:
Step 1: At the main interface, select Receive .
Step 2: Enter SOL in the search box.
Step 3: Copy Solana wallet address and send SOL token to this address.
Trade SOL on Coin98 Wallet
SOL coin is currently tradable on Coin98 Wallet as follows:
- Step 1: At the main interface, select Swap.
- Step 2: Select Coin98 Exchange .
- Step 3: Select the SOL trading pair, fill in the information and swap.
Should I invest in SOL coins?
It can be said that Solana is a very HOT project after FTX implemented the first DeFi project on Solana's Blockchain platform.
Here are some views on Solana:
Market opportunity of SOL
The biggest problem with Ethereum right now is probably scalability and stability so that developers can develop dapps on Ethereum in the long run.
While Ethereum 2.0 is on hold, Layer 2 projects are seen as bright spots but none can really dominate the market. Including other high-performance blockchains like Quark Chain, Zilliqa...etc.
This creates an opportunity for blockchain platforms that can meet the following criteria:
- High scalability, low latency, low fees, clear scaling solution.
- There are execution environment and tools that help Developers can easily build on top.
- Have application/sharding/layer 2 complexity to a minimum.
- Backward compatibility and continued stability in the future.
And indeed, Solana is pretty much meeting those criteria:
- Highly Scalable: Solana currently supports over 50,000 transactions per second. Also maintain block times of 400 milliseconds without complex solutions like sharding or layer 2.
- Low latency: ~1 second.
- Low Fees: Estimated $10 for 1 million transactions.
- Rust is the leading programming language (also supports C, C++ and Libra's Move).
Project team
Solana is built by an all-star, experienced team from big companies like Google, Apple, Intel, Twitter, Dropbox, Microsoft,...
Ecosystem
Currently, the Solana ecosystem is growing at a very fast rate.
Investors & Partners
Solana is invested by large VC funds such as Multicoin Capital, Slow Ventures, Foundation Capital...
Besides, the development in the ecosystem is getting a lot of attention, especially when it was announced that Solana Labs, Solana's investment arms had just called for $314 million. With this money Solana Labs can accelerate the development of projects in the ecosystem.
Token Model
Solana's SOL Token model is quite similar to ETH in Ethereum's network such as: used to pay transaction fees, smart contract execution fees, staking rewards, Governance, Collateral Assets in DeFi projects...
Epilogue
Solana seems to be in a favorable position when launching the right DeFi trend, properly solving the pain of expensive and slow transaction fees in Ethereum. Will Solana take advantage of this opportunity to stand next to Ethereum? What do you think about this SOL coin? Please share your comments below to discuss and exchange!
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