Understanding Solana – General Overview
Solana is a blockchain platform designed to host decentralized, scalable applications. Founded in 2017, Solana is an open-source project currently run by Solana Foundation based in Geneva, while the blockchain was built by San Francisco-based Solana Labs.1 Solana is much faster in terms of the number of transactions it can process and has significantly lower transaction fees compared to rival blockchains like Ethereum.
The cryptocurrency that runs on the Solana blockchain—also named Solana (SOLUSD) and with the ticker symbol SOL—has soared almost 12,000% so far in 2021,2 and with a market capitalization of over $66 billion, it is the fifth-largest cryptocurrency by this measure.
How Does Solana Work?
The goal of Solana's architecture is to demonstrate that there exists a set of software algorithms that, when used in combination to implement a blockchain, eliminates software as a performance bottleneck, enabling transaction throughput to scale proportionally with network bandwidth. Solana's architecture satisfies all three desirable attributes for a blockchain: it's scalable, secure, and decentralized. Solana's architecture describes a theoretical upper limit of 710,000 TPS on a standard gigabit network and 28.4 million TPS on a 40-gigabit network.
Solana's blockchain operates on both a Proof of History (PoH) and proof-of-stake (PoS) model. PoS permits validators (those who validate transactions added to the blockchain ledger) to verify transactions based on how many coins or tokens they hold; PoH allows those transactions to be timestamped and verified very quickly.
Solana Mining – Know The Basics
Solana coin (SOL) SOL coin cannot be mined. You can only participate in staking Solana and receive SOL coin rewards. No, as a proof of stake coin Solana cannot be mined.
The Solana Foundation has announced that a total of 489 million SOL tokens will be released into circulation, of which 325 million have already entered the market.