Solana is a blockchain with its own internal cryptocurrency named SOL. This coin has been dubbed the Ethereum killer and has shown excellent growth this past year, owing to the bullish market, possibly fueled by the pandemic. Here’s everything you need to know about Solana before you decide to invest in it.
What Is Solana?
Cryptocurrencies operate on a different level of privacy and security for their transactions. Since these are not governed, they must ensure some form of safety for their users.
Since cryptocurrency has no physical form or unit, it must also assure that any amount of value in a transaction is never counterfeited or double-spent.
The solution to all this is to have a protocol that ensures these things are looked into.
Solana is a company that provides an operator that handles transactions. These transactions occur at incredible speeds of over 65000 transactions per second without any lags or errors, whilst maintaining utmost safety during the transaction.
There are different protocols that are used to run such transactions such as Proof of stake (used by Ethereum) and proof of work ( Initially used by bitcoin), while Solana works on the Proof of history protocol.
This protocol sets it apart from all other cryptocurrencies in the market and is also the reason for its tremendous growth in the past year.
Is Solana A Good Investment?
Solana has grown over 13,300% since the beginning of the year and it continues to boom.
It has a great new protocol for transactions and incredible speed coupled with excellent security.
Within the last 24 hours, the value of Solana went up by 11.4%.
In the current market, valued at $227.81 per coin, Solana is a great investment to make if you have the money to spare.
Despite so many advantages, Solana does come with a few disadvantages. Although these drawbacks are outnumbered by the positives, they cannot be taken lightly.
The major drawbacks of Solana as a blockchain could lead to its downfall:
- It may have to be centralized as there aren’t enough validators for this blockchain. This factor may lead to complete loss of privacy and no-third party interference factor.
- It takes time to deal with the bugs and other inconsistencies with the platform.
- There is often huge outrage after the operator crashes due to overloads. This occurred twice and took a few hours before everything was under control again.
Will Solana’s Price Increase?
At the current rate of growth, yes.
Should I Invest In Solana?
Despite the bullish run of Solana in the crypto market, no peak is without a trough.
Solana is a great investment at this point in time but having said this, no cryptocurrency is 100% a safe investment, as it is a very volatile market.
Don’t forget to do your own research and be prepared for both the gains and losses that may come with the investments you make.