Since the creation of Bitcoin in 2009, people have been trying to replicate it and improve on it.
Many of these new cryptocurrencies are not just similar but very different in their design.
Solana’s creators wanted to create a faster and more efficient currency than any other coin before it, one that would revolutionize the cryptocurrency industry as we know it today.
Solana’s structure allows users to complete transactions with their tokens (SOL) almost instantly by avoiding the mining process that most coins go through and using Proof-of-History (PoH) instead.
What is Solana?
To give you some background on Solana, it’s creating a decentralized blockchain network that allows users to carry out instant and nearly-free microtransactions with lightning speed.
Additionally, developers can create their own dApps with ease. The team behind Solana is also really passionate about what they do, which should be music to any blockchain expert’s ears.
In case you don’t know where to buy solana, go to any cryptocurrency marketplace that has Solana listed. You can go to Binance.
How does Solana work?
Solana is built on top of sharding and proof-of-stake consensus. There are two types of validators in Solana: archival nodes and transition nodes.
Archival nodes archive every single transaction that happens on the network to make sure that no one can modify them.
To do so, they will have to create shards (which contain different parts of each transaction) as new transactions happen on different nodes.
Transition nodes verify archival nodes and ensure that all transactions stored within their shard are accurate.
When you want to send a transaction, you send it through your transition node, then send it through other nodes until it reaches an archival node, then verify your signature before confirming or denying your request.
The more SOL tokens you hold, the more likely you will be selected as an archival node-but even if you don’t own any SOL tokens, there is still a chance you could become one!
Is Solana legal?
Solana’s legality largely depends on where you are located. It has not been deemed illegal, but your country can block these depending on your location.
It would be best if you familiarize yourself with your country’s stance before using Solana or any other cryptocurrency for that matter.
Most governments have not taken an official position yet. That said, it’s important to note that Solana is NOT anonymous, and transactions are recorded on its blockchain.
While it might be difficult to track down individuals behind specific transactions (assuming they take care to use unique wallet addresses), each transaction is still recorded publicly and permanently.
Can you make money from mining Solana?
Mining is used to add transaction records to Bitcoin’s public ledger of past transactions (known as the blockchain). Mining is also used to keep everyone on the network in sync.
By running mining software, you join thousands of other computer users around the world who are using their computers to verify and record payments.
However, there is no option to mine Solana as per the proof of stake.
What do experts say about this coin?
To find out what experts think about any cryptocurrency, you can check news sites that aggregate expert opinions.
In Solana’s case, CryptoCoinTalk and Twitter are two good places to start. Another way to get an objective perspective is by checking reviews of Solana on the social media platform Reddit.
Finally, any coin-issuing company will likely have information on their website (like whitepapers or other content) that answers people’s common questions.
One of our friends recently asked us if we thought Solana was a legitimate cryptocurrency.
Here at this post, we take our friend’s opinions seriously, so we looked into it and found out what makes Solana tick.
We have some good news: it’s legit. That said, there are still some issues to be ironed out before it can reach its full potential.