What is Solana? Is Solana a Good Investment?


When people think of cryptocurrency, typically the first examples that come to mind are Bitcoin and Ethereum, however one day, I believe that Solana will be on the shortlist. Solana first showed up on my radar as the Ethereum killer, and even Solana’s cofounder has stated that Ethereum cannot be “killed.” However, Solana has established itself as a formidable competitor to Ethereum.

What is Solana?

Solana was developed in 2017 by Anatoly Yakovenko. Solana is a decentralized computer network that runs on blockchain, this blockchain records every transaction. Users on the Solana network can execute transactions without an intermediary. Solana can process 65,000 transactions per second, and costs less than a penny per transaction. This is astounding considering the fact that it takes about 10-15 seconds to run one transaction on Ethereum, and an average Ethereum transaction can cost anywhere between $3-10. Instead of using Proof of Work or Proof of Stake, Solana uses what is called Proof of History, according to Medium, “Proof of History is a sequence of computation that can provide a way to cryptographically verify passage of time between two events.” Solana’s native cryptocurrency is Solana, or SOL, it is used to pay transaction fees and for staking. Solana is so much more than a cryptocurrency, according to bankrate.com, “Solana can power smart contracts, decentralized finance apps, NFTs and more.”

Is Solana a Good Investment?

Since being created, Solana has done very well. It is a reputable project that performs the same tasks as Ethereum, but for a much cheaper price and at a much faster speed. Ethereum’s mass adoption is also what is crippling it, the popularity of Ethereum has driven up fees and created heavy traffic. These are some of the many reasons that Solana grew 12,000% in 2021. This causes some people to question the staying power of Solana, due to the fact that this kind of growth can sometimes point to future volatility. But in Solana’s case, I truly believe that it is a great crypto project that provides solutions to many of Ethereum’s problems. If Solana can continue to attract developers, it should have a very strong future ahead.

Where to Buy Solana

Solana can be purchased on Binance which is considered to be the world’s largest crypto exchange, you can also stake Solana on Binance. Coinbase is another place that makes it easy to buy Solana.

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