What is Solana? – Small Business Trends

Since the explosion of cryptocurrencies, both investors and cryptocurrency enthusiasts have created a niche market of digital currencies used as digital money and creating waves in the digital economy.

In fact, there are more than 19,000 individual cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, Binance and Solana in the market today that are traded on dozens of blockchain platforms.

Blockchains are online databases spread across computers running blockchain software. They minimize the need to trust centralized authorities such as banks, auditors, accountants, regulators and even governments. Instead, they rely on a global network of peers to enforce trade and exchange rules.

Interestingly enough, no entity owns or controls the databases. Anyone can access the database, offer proof of ownership and transfer cryptocurrencies through the use of crypto wallets.

What is Solana?

Like Ethereum, Solana is both a cryptocurrency and a flexible platform for running decentralized apps (dapps). Launched in March 2020, Solana uses SOL tokens as its native cryptocurrency and can be used to pay transaction fees, conduct crypto trading, and more.

It works to improve scalability using the proof-of-history (PoH) and Proof-of-Stake (PoS) consensus algorithm. It claims to be able to support 50,000 transactions per second without sacrificing decentralization. Thanks to its fast processing, it reduces congestion, keeping processing costs low.

Solana Price

Solana’s current price reached $41.03 on Tuesday and is down 3.98% in the past 24 hours. However, the value is up 16.51% in the past week after seeing marginal gains and losses of as little as $2 in the past week, signaling investor confidence, Coinbase said.

Solana is currently 84.22% below its all-time high of $260.06 recorded in November 2021. Solana currently has a market cap of $14.2 billion with a circulating supply of 346.5 million SOL coins. Users can buy, send and receive Solana using various crypto exchanges and wallets.

Can I mine Solana?

Solana cannot be mined because it does not use a consensus mining mechanism. Instead, Solana uses staking where cryptocurrencies verify their transactions and allow participants to earn rewards on their holdings.

What this means is that through the process of staking cryptocurrencies, users will stake their crypto assets to support a blockchain network and confirm transactions that act as a validator. And when new cryptocurrency coins are minted, they are distributed as rewards for the staking service.

The number of Sol tokens you will receive as a reward will depend on the number of trades you process and the number of SOL tokens you have wagered.

How to mine Solana on PC

You can use Solana with a PC, but you need a good and uninterrupted internet service with at least 300 Mbit/s. You must also have a PC with the following minimum specifications:

CPU: x86-64 compatible; Intel Ice Lake or newer (Xeon or Core series); AMD Zen3 or newer (EPYC or Ryzen); Concurrent multithreading disabled (Hyper-Threading on Intel, SMT on AMD); Prefer single-threaded performance over a higher number of cores. Storage: A 1TB NVMe SSD (as it needs to be fairly large to handle blockchain growth). Memory: 64GB DDR4 ECC. System: Linux Kernel 5.16 or newer

You can wager SOL by moving your tokens to a wallet that supports staking. There are many wallets that offer steps to create a wagering account and do the delegation.

Is Solana a good investment?

There is money to be made with cryptocurrencies, in fact the global cryptocurrency market has grown exponentially in just a decade with the industry projected to reach $1.9 billion by 2028. In recent years, Solana has grown to become one of the most popular blockchains, especially for its support for Play to Earn gaming projects (P2E) thanks to its smart contracts.

Solana has built its platform using Ethereum’s technologies and provides users with services such as NFTs, metaverse, DeFi apps, meme coins, P2E games, and more. It remains one of the fastest blockchain networks and is popular with investors. However, because blockchains are relatively new investments, prone to volatility and scams, and not under scrutiny by law, no one can actually provide any guarantees that cryptos and blockchains will be profitable.

The prevailing rule of thumb is that investments in cryptocurrencies should have a diverse portfolio and be long-term. Purchases should be based on market capitalization, the volume of coins in the market, and be alert to market trends and what purposes the particular cryptocurrency serves.

Image: Solana

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