15.6 C
New York
Monday, September 27, 2021

Buy now

Solana, the ‘crypto’ that competes with Ethereum and solves the blockchain trilemma




The return to school this September in the cryptocurrency market has an indisputable protagonist, which is grabbing the attention of crypto investors, while the general markets wonder what it is and what news it brings compared to other projects such as Cardano, Ethereum and bitcoin itself. It is about solana, a token with just 18 months of life, which has grown a staggering 8,600% in 2021 and it has crept into the top 10 crypto currencies by market capitalization, with more than $ 50 billion in value and a price point of $ 200.

Data from ‘CoinMarketCap’ shows that Solana’s SOL token has been the fastest growing digital currency from January to September. Specific, has exceeded the rate of expansion of ether nineteen times -the unit of the Ethreum network- or 106 times that of the number one crypto in this period. In the last month alone, it has skyrocketed by a whopping 400%, amid growing market conviction that its blockchain could end up trumping Ethereum in the long run. And it holds a not inconsiderable seventh position among the most valued digital currencies.

In fact, “it was born with the clear intention of become an alternative to the network of the second crypto by market capitalization ”, explains Álvaro Alcañiz, co-founder of Onyze. An objective that, in his opinion, “he has achieved without any doubt.” Solana is an ultra-fast and highly efficient network compared to the blockchain networks that have been used until now as references for the construction of decentralized solutions. “With his ultra-speed transaction and its very clear potential for adaptation to various fields, is a more than worthy rival for the Ethereum network ”, says the expert.

The cornerstone of the Solana project is clearly that it excels when it comes to solving some problems or barriers that the ether blockchain presents and that hinder its practical application to the real world, explains Ramiro Martínez-Pardo, CEO and founder of HeyTrade. Specifically, its main value is that manages to solve the so-called “blockchain trilemma”, for which three things cannot be achieved at the same time: “Decentralization, performance and security”. This network arises with the clear purpose of developing a chain of blocks that resolves this trichotomy and is capable of carrying practical applications to the real world, fundamentally to decentralized finance (DeFi for its acronym in English), where previous projects that also rivaled ether did not quite solve problems such as the need for a high degree of immediacy in transactions.




“The most interesting thing about Solana, as a project, is its scalability, one of the most common problems blockchain platforms face. That, added to its speed, capable of reaching up to 50,000 transactions per second, undoubtedly make it one of the most promising networks today, ”adds Moisés Santos, an expert in investment and digital assets at Bitpanda. “There are large institutional investors who trust Solana and its future, and it is possible that more will continue to add, given the recent upward momentum that we are seeing ”, he rounds off.

The experts consulted coincide in underlining that another of the characteristics that make the blockchain of the Sol token unique is that it has implemented a novel type of verification between its nodes, which is based on a proof-of-stake (PoS) model with a complement that gives rise to a hybrid consensus model that allows a test typology based on the history of the network. East new model has been named Proof-of-History (PoH), and “offers more scalable possibilities than other systems such as Proof-of-Work or Proof-of-Stake, applied independently”, clarifies Alcañiz.

In addition, this new format makes network transactions cheaper, which is popularly known as gas rates. In summary, we are facing a ‘blockchain’ “more efficient and that solves the problem of there being inequalities in bandwidth between members, thanks to a combination of cost reduction, higher speed and the ‘Proof-of-History’ model communication between nodes of the block chain ”, elaborates Martínez-Pardo.

COEXISTENCE OR COMPETITION?

Despite being so promising, it is impossible for experts to decide whether solana will really prevail over ethereum and other ‘altcoins’ such as cardano, which are also based on blockchains with real-world applications such as the aforementioned DeFi or non-fungible tokens ( NFT for its acronym in English). In the current context of rapid development and competition, “it is difficult to say if the winner will be one of them or a new one that emerges in the coming months“So you have to be very aware of what will happen, recommends Martínez-Pardo. The CEO of HeyTrade does not rule out that a specialization process will also end up, in which each blockchain is eventually optimized for certain applications.

Point and apart deserves bitcoin For the expert, since the most operated of digital currencies has acquired a clear role of store of value, as a digital alternative to gold or assets of this type, so he does not believe that the rest of the networks overshadow the creation of Satoshi Nakamoto.

As for investors considering diversifying their portfolios with this type of tokens, beyond bitcoin, Martínez-Pardo points out that “for those operators that can afford to bear the losses that tokens such as solana will entail, as soon as the usual corrections arrive the market, it can be a a good option to invest in those that are gaining traction“That yes, calls to circumscribe the investment to the 10 main tokens by market capitalization.




TAMMY SEWELL
Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
2,958FollowersFollow
0SubscribersSubscribe

Latest Articles