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Solana is a growing blockchain with striking resemblances with Ethereum. It is often described in the context of an “Ethereum killer.”

Similar to Ethereum Like Ethereum, like Ethereum, the SOL token can be bought at most exchanges. Its true value lies in the way it conducts transactions through Solana. Solana system, which offers special advantages.

The Solana blockchain is based on a proof-of-history consensus mechanism. The algorithm utilizes timestamps to determine the next block on the chain of Solana..

What Makes Solana Unique?

Through a unique mix of proof of historical records and delegated proofs of stake, Solana is able to offer significantly faster transaction speeds than its closest rivals, Ethereum and Cardano (ADA) and at only a fraction of the price, Anissimov says by using an exclusive blend of proof of historical evidence and delegated proofs of stake.

Differently from proof of work that relies on the miners to define the next block of the chain also known as proof of stake which makes use of staked tokens in order to determine what will be the block next, proof of historical utilizes timestamps to define the definition of blocks to be used in that chain. Solana chain.

This revolutionary system allows validators of the blockchain to decide on the timestamps of various blocks on the chain. The blockchain remains uncentralized, while also allowing faster and more secure calculations.

How Does Solana Work?

Solana is working on a mix of delegated proof-of-stake and proof-of-history protocols.

The motivation behind this mix of protocols is Bryan Routledge, associate professor of finance at the Tepper School of Business at Carnegie Mellon University, says Solana is working to “process lots of transactions quickly.”

Routledge states that processing transactions in a timely manner typically requires centralization.

For instance, Visa uses a huge computer network to ensure that its processing speed stays up to date. Bitcoin however, contrary to what Routledge states that it “processes transactions very slowly” to ensure that it remains decentralized.

The primary goal for blockchain technologies is to offer an uncentralized system, Solana attempts to process transactions at a speed that is comparable to the size of a centralized, large firm such as Visa and still maintain the decentralization aspect of Bitcoin.

This speed is a key factor in increasing capacity because the financial and environmental cost of Solana’s technology are less expensive.

The rapid pace that blocks are added to Solana’s blockchain needs additional security levels in the process of establishing the Blockchain. It is here that Solana’s”proof of historical records algorithm is used.

This algorithm is able to time-stamped every block in an order that ensures the security of the system.

The Solana’s SOL tokens are then staked and utilized as collateral to facilitate transaction on the platform.

These transactions range from validating smart contract contracts to making use of Solana as an un-fungible token (NFT) market..

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