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Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.
Today, let’s talk about Solana!
Solana is a blockchain technology that allows developers to build so-called decentralized apps, or financial systems, on its infrastructure. That could be anything from currencies, to loans, to NFTs. As such, it has very similar goals to Ethereum and Binance Coin, which we’ve discussed in previous episodes.
So what makes Solana special then? Founded in 2017, but only recently released in 2020, Solana has the goal to handle massive transaction volumes without compromising security and decentralization. In other words, it wants to replace Ethereum with none of the bottlenecks.
And to achieve that, Solana invented a few unique tricks. But the primary innovation is a process called “proof of history”. This allows for many computers in its network to validate blocks, which are groups of transactions, in parallel. In contrast, Bitcoin for example, can only validate one block at a time before all the computers have to communicate and catch up on the latest data again.
And in fact, Solana has been tested with up to 100,000 transactions per second, and transactions cost a fraction of a cent. Compare that to the roughly ten thousand transactions per second going through traditional Credit Cards, all of which cost a few percent in fees, and you see why people think Solana could be a leading technology in the future.
And that’s Solana! And tomorrow, we’ll talk about USD Coin.
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