Important: this blog is meant for educational and entertainment purposes and is not meant to be financial advice. Please consult a financial professional before investing in cryptocurrencies.
Solana is a Layer 1 Blockchain smart contract platform that was written from the ground up with scalability in mind. Solana’s claim is that it’s the fastest available blockchain and their goal is to be as fast or faster than centralized financial systems like the New York Stock Exchange.
Solana is fundamentally a Proof of Stake (PoS) blockchain, but it is also much more than that. Solana’s claim is that it adds 8 innovations that make it the absolute fastest Blockchain available today. Top of that list is Proof of History, which adds a synchronized timing mechanisms to clean up noise in the transaction layer, similar to how cell phone towers work. Rather than go into that here, I would recommend reading this article by the creator of Solana, Anatoly Yakovenko if you’re interested in learning more about the technical innovations built into Solana.
Solana was created in collaboration with Sam Bankman-Fried in building the FTX crypto exchange. Bankman-Fried is one of, if not the richest, people in cryptocurrency and his backing definitely has a lot of weighting in terms of Solana’s success. Solana has also received strong venture backing in the form of ICO purchase. According to Crunchbase, Solana to date has received over $335 million in backing, which puts it behind the $450.5 million backing of Polygon.
In my opinion, Solana is the most interesting blockchain project today and is one of the top projects most likely to surpass Ethereum in the long run, however, there are a couple things that might hold it back. Unlike Polygon, Solana is not compatible with the Ethereum Virtual Machine (EVM) so existing web3 projects will need to be rebuilt for it.
Also, PoS is not completely proven as a secure store of value. For example, is it secure enough that a big financial institution would use it in place of existing financial infrastructure? Although Polygon may not be as interesting technically and might not offer the same transaction speed, it is compatible with the EVM and therefore will likely see faster adoption given Ethereum’s wide dominance today.
With all that said, I am personally pretty heavily invested in Solana. Out of the 4 biggest smart contract tokens I hold in my portfolio, Solana is my second biggest play behind only Ethereum.
323m of 517.2m possible (62.4%)
Daily Active Users
65,000 Transactions per second (tps)
Cost per transaction
Andreessen Horowitz, Polychain, Multicoin Capital
Note: the data listed here is approximate as of the date of publish and is not yet automated (I’m working on it). It’s meant to act as a starting place to compare against other crypto projects. Please see Solana Beach for more accurate statistics.