What is Solana and Why is Everyone Talking About it?

For many years, talking about cryptocurrencies was only related to Bitcoin. After all, it was – and still is – one of the most popular tokens on the market. But what about all the others?

Well, the truth is that you should never stop looking at other financial movements. If you stop doing so, you could miss out on the emergence of some very interesting cryptocurrencies, as is the case with Solana

Here we will tell you what exactly this token is and why it could revolutionize the cryptocurrency market.

What is Solana?

Solana (SOL) is a blockchain project based on open source that seeks to offer a scalable, secure, and decentralized platform. One of its most distinctive features, which differentiates Solana from Bitcoin or Ethereum, is that it allows users to make decentralized applications, known as DApps. However, that is not all: they are also meant to influence NFTs

There is also another very relevant aspect to highlight, which is that of saving energy. One of the biggest criticisms of Bitcoin is that it could endanger the current electricity system, due to its enormous consumption. Well, in the case of Solana, things are different. Thanks to its Proof of History mining method, there is no longer a competition between nodes, as is the case with Bitcoin. Now, the system chooses nodes randomly, but with a bias towards who has the highest participation in mining. Because of this, not everyone is expending energy to mine. 

In addition, its block generation is really fast. Solana can create a block in about 400 milliseconds. Just so you can picture, Ethereum takes about 10 seconds, while Bitcoin can consume up to about 10 minutes or so. Speed makes the difference!

what is solana

Why should you invest in Solana?

In this case, Solana appears to have enormous potential for the future. It is the fifth cryptocurrency with the highest investment in the market at present. For example, in December, its price varied between $209 and $190, something relatively stable, considering the decline of crypto in general. 

However, you should know that this relative stability is not very good for trading. So, you will not be able to obtain large amounts of money in a short time unless you invest a large amount of income. On the other hand, it is perfect for holding. For example, Solana still has a long way to go, to catch up with Ethereum as the main platform for the development of new cryptocurrencies. This happens because it does not yet have Ethereum’s investment ($488 billion, against Solana’s $58 billion). However, by 2030 this token could become worth around $5,000, according to experts.

You already know all about Solana, a token with a huge future. If you want to learn more about cryptocurrencies, we invite you to keep reading our blog

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