Solana public chain, founded by engineers from Qualcomm, Intel, and Dropbox at the end of 2017, is a single-chain, delegated Proof-of-Stake protocol.
Solana performs well in terms of its SOL token, ecosystem building and media propaganda. As of August, 2021, Solana’s native token SOL, which was launched on the mainnet over one year ago, ranked among Top 10 tokens on CoinMarketCap by circulating market cap. Following each market slump, it rebounded more quickly than other tokens. In the summer of 2021, Solana was frequently reported by major media due to its hot Hackathon contest. The official website of Solana shows that it has more than 200 ecosystem partners.
It is not by accident that Solana ecosystem starts from scratch and grows rapidly. Compared to the public chain EOS, which raised billions of dollars but ignored its ecosystem, obviously, Solana puts many efforts on its ecosystem building and presents solid advancement. Apart from the long-term Grants, an ecosystem funding plan, Solana has held three massive Hackathon contests, of which the latest Solana Hackthon Season distributed the award of almost $1 million. Due to the bonus attraction, there are more than 10,000 participants and 350 projects. Thanks to these Hackathon projects, Solana ecosystem is booming.
The Solana team are very creative in the R&D of technologies which are the infrastructure and core of Solana ecosystem. Solana core provides scalability to support all fast, secure and scalable decentralized applications and markets, without any impacts on decentralization or security. Solana solves the distributed network without a single reliable time source via the distributed clock named “Proof of History” (PoH). Through the verifiable delay feature, PoH allows each node to use SHA256 algorithm to generate a timestamp locally. In this case, the time stamp will not be broadcast to the whole network, thus improving the whole network efficiency. In most of cases, the TPS of Solana blockchain stays at 1000, far below the full load limit. While maintaining high performance, Solana also provides some decentralization – now there are more than 500 global nodes.
Besides, Tower BFT, Turbine (block propagation protocol), Gulf Stream (memory-free trading transfer protocol), Sea Level (parallel smart contract), Pipeline (verification trading), Cloud dispersion (horizontal expansion account database), and Archives (distributed ledger storage), are used together with the Proof of History (PoH) mechanism to solve impossible triangle problems.
Though the technical innovation of Solana is highlighted, Solana blockchain still has programming language restrictions. The Binance Smart Chain is compatible with Ethereum virtual machines (EVMs), and developers can easily migrate the code of blockchain projects on Ethereum to the Binance Smart Chain and continue to work on them with Ethereum programming language Solidity and similar programming tools. However, Solana blockchain is not compatible with EVMs, while Solana blockchain is programmed with Rust. Therefore, compared with the ecosystem of Etheruem and the Binance Smart Chain, few developers develop Solana blockchain with Rust. Moreover, Solona wallet is not user friendly, but Solona expressed it will further optimize the wallet.
The scalability of Solana attracts more developers since there is no need for developers to work out network congestion and high gas fees in the decentralized applications they develop. However, it is meaningless if no mining or interaction exists even with better underlying technologies of a public chain. With solid technology base, now Solana shall spread its technology to developers, and attract more developers to develop the public chain with strong capitals. It is no doubt that Solana made it.
As of June 2021, 13 ecosystem funds are listed on Solana ecosystem, including Coin98 Ecosystem Fund, Hashkey, Rok Capital, NGC Ventures, BRZ Ecosystem Fund, Blocksync Ventures, CoinDCX Ecosystem Fund, Math Global Foundation, Huobi Ecosystem, OKEx Blockdream Ventures, Hacken & Gate.io Ecosystem Fund, MXC Ecosystem Fund and Gate Labs (in no particular order). Besides, we often see the investment of Alameda Research, Multicoin Capital and Three Arrow Capital in projects of Solana ecosystem.
Since its founding, Solana ecosystem covers DeFi, tools, infrastructure, NFT, games, wallets, Dapps, and development. 15 specific fields such as DEX, derivatives, trading analysis visualization, loan, synthetic assets, and stable coins are included. Among them the outstanding fields are tools, infrastructure, NFT, games, wallets, Dapps, and developer tools. They are part of blockchain world and important to support the blockchain development.
On Solana security and stability are the most important as more projects are expected to be launched, protocols will be grouped randomly and projects and capitals are due to soar. Ultimately, Solana has to upgrade its technology, stably scale the blockchain performance, and improve development tools.
Now Etheruem holds more than 60% of applications and Dapp users. From the point of public chain, Solana is still challenging. Billions of dollars of Dapps are developed thanks to the radical innovation of Solana at no cost of decentralization or security. In the future, can the fast-growing Solana keep with up or even surpass the blockchain (Etheruem and Binance Smart Chain) compatible with EVMs? The market will tell us the answer. It is worth noting that many uncontrollable factors may exist since Solana ecosystem is still growing. It is recommended that users shall assess risks before investment based on their conditions. Rational and prudent investment is always recommended.
Kseniia is the Chief Content Officer of Coinspeaker, holding this position since 2018. Now she is very passionate about cryptocurrencies and everything connected with it, so she tries to ensure that all the content presented on Coinspeaker reaches the reader in an understandable and attractive way. Kseniia is always open to suggestions and comments, so feel free to contact her for any questions regarding her duties.