Some of the links here on Where-to-Buy-Bitcoin.com are affiliate links, which means that we sometimes get a compensation from the reviewed products and services. However, we are independently owned and the opinions expressed on the website are our own. We test each service and product throroughly and recommend only the very best.
When Ethereum allowed developers to write smart contracts and build decentralized applications, it was called the Bitcoin killer. However, Ethereum has its challenges, a few blockchains have tried to solve these problems to emerge as an Ethereum killer.
Solana is one such blockchain. It started trading in 2020 at $0.78, and in June 2021, the token reached its current all-time high of over $258, increasing by over 30,000%. What is Solana, why is it important, and how can you own this token?
Our Preferred Crypto Exchange for Buying SOLThe best way to buy Solana, or any other cryptocurrency, is by purchasing from a crypto exchange platform. There are many crypto exchanges that you can use, but here are our top picks. These exchanges are easy to use and offer the best prices.
4. Prime XBT
How Does Solana Work?
Like Ethereum, Solana has a public and open-source infrastructure that allows the development of smart contracts, non-fungible tokens (NFTs), decentralized finance (DeFi), and other decentralized apps. But unlike Ethereum and other blockchain networks, Solana has a higher throughput and better speed and was designed for global adoption. This feature is possible because of its proof-of-history consensus mechanism, a hybrid of the conventional proof-of-work.
In proof-of-stake, rather than individually trying to solve computational problems, people come together to put their money in a validator. The validator approves blockchain transactions and shares rewards with stakers based on the percentage of their contribution to the validator. This process is more energy-efficient, rewards everyone for their contribution, makes the network more decentralized, and improves security.
Proof-of-history adds the time factor to proof-of-stake. It allows validators to approve transactions in the correct sequence they were sent. The blockchain arranges transactions into small groups called blocks. These blocks are then sent to the validators for approval. Unlike the conventional proof-of-stake process, Solana adds a timestamp to each sent block. This makes it easy for the subsequent validators to receive and process the transaction in the order they were sent. Solana has over 3,400 validators, and the next validator allowed to process a transaction is chosen based on the number of tokens staked in them.
The whole process becomes more accessible and faster. This explains why Solana has one of the fastest processing speeds and reduced transaction fees.
Why is Solana Unique?
Solana functions like other blockchains, but there are certain features that Solana possesses that distinguish it from the rest;
- Consensus Mechanism: Solana uses the proof-of-history, which makes it one of the fastest blockchain networks on the blockchain.
- Tower BFT: Byzantine Fault is a common decentralization issue that makes blockchain nodes behave abnormally. To resolve the issue, the nodes come together to pick out the fault node and avoid it to keep the network running correctly. This resolution technique is known as Byzantine Fault Tolerant (BFT), and the system is said to be Byzantine Fault Tolerant. Tower BFT allows Solana nodes to use proof-of-history to agree on what block to validate after the Byzantine Fault has been resolved.
- Turbine: Solana uses the Turbine to send data to all its nodes by breaking and sending them to markets through different routes. In other blockchains, the data is sent as a huge block, which can be time-consuming.
- Gulf Stream: Gulf Stream reduces Solana’s mempools by scheduling validators to approve transactions ahead of time. It contributes to the high transaction speed and reduces memory usage on validators.
- Sealevel: Sealevel is a highly sophisticated transaction processing engine that allows Solana to perform parallel transactions and scale across GPUs and SSDs.
- Pipelining: Pipelining is a transaction process that helps to process a sequence of steps and send blocks to the correct validator for approval.
- Cloudbreak: Cloudbreak is the only memory system that stores on-chain programs and improves scalability for the blockchain.
- Archives: The archivers are a network of nodes that receive data from the validators after blocks have been processed. These nodes do not participate in the consensus mechanism, but they use Filecoin’s proof-of-replication system to store data.
How Can I Buy Solana?
You can buy Solana from any of the crypto exchanges listed earlier. All you have to do is follow these steps;
Open an account and create a Solana wallet.
Fund your account with the price of the number of Solana you want to buy.
Exchange your money for Solana on the crypto exchange.
You can send your tokens to any Solana-supported wallet of your choice.