SOL is the hottest crypto token in the market.
Solana is evolving into a widely adopted cryptocurrency. While cryptocurrency hasn't existed for a decade, it has grown into a widely accepted blockchain network.
Solana's official website states that cryptocurrency is the fastest Blockchain with low transaction fees.
This article will explore the SOL cryptocurrency and why it stands out from other cryptocurrencies.
What is SOL
Solana (also known as SOL) is a smart contract Blockchain project by Anatoly Yakovenko in 2017 to rival the scalability deficiencies of its predecessors, Ethereum and Bitcoin.
Due to the worldwide hype the NFT community received in 2021, Solana gained popularity and became one of the most talked-about crypto projects.
Transactions on Solana are super-fast and cheap. The Blockchain has a user-friendly interface with over 400 Defi, NFTs, and Web3.
Earlier this year, Solana Labs launched a new feature on the Blockchain called Solana Pay. This feature makes it possible for users in the crypto market to pay and receive payments for crypto transactions instantly and with low fees. Thus bypassing popular payment methods like Mastercard, PayPal, and Visa.
How Does Solana (SOL) Work
Solana (SOL) is a blockchain technology that uses an open infrastructure to deliver more scalability. It is highly efficient and offers its users fast and secure transactions for low fees.
SOL allows its users to stake and make payments. Asides from using proof-of-stake (PoW) and proof-of-work (PoS) algorithms, Solana uses the proof-of-history (PoH) algorithm allowing the Blockchain to make fast, secure, and decentralized transactions.
Thanks to its speed, Solana is a better substitute for Ethereum. It performs about 50,000 transactions in a second.
Ethereum has made its impact as the leader of decentralized finance (DeFi) as it blends with smart contracts, enabling it to build decentralized applications (dApps).
Due to Ethereum's popularity, the Blockchain has gotten expensive and slow to manipulate, making Solana a more suitable option.
Where to buy SOL with Paypal
An excellent platform to buy SOL with PayPal is the Moonpay crypto trading platform. Moonpay offers fast and cheap solutions for cryptocurrency exchanges.
It allows you to buy even a fraction of SOL with your e-wallet and other payment methods. The platform is available in more than 150 countries and caters to the local currencies of the country's banks.
With Moonpay, you will safely run SOL transactions without worrying about high conversion rates. Moonpay is the safest platform for cryptocurrency exchanges.
How does Solana rival the Ethereum blockchain
While Ethereum has the advantage of being around for a longer time (since 2015), its Blockchain technology still faces some issues, mainly in processing speed. With its invention in 2020, Solana has threatened to overtake Ethereum with its remarkable speed and lure of lower costs, making crypto gurus tag it the "Ethereum Killer. "
To get a more profound knowledge of this, we will be comparing both crypto Blockchains with the following features:
1. Consensus algorithm
Until its recent merge in September 2022 (where the promise of new modifications to the Blockchain included adding a proof-of-stake system called Beacon Chain), Ethereum used the proof-of-work (PoW) system to verify transactions made on the network.
One major disadvantage of this proof-of-work system is that it is slow and uses an intensive amount of energy due to the increased computational work that the computers have to carry out to validate a single transaction. It makes the system unsafe for the environment.
Solana uses a proof-of-stake (PoS) system combined with the innovative proof-of-history (PoH) Blockchain to process transactions. With the PoH system, time stamps are built into the blocks, drastically reducing the time and energy required to process crypto transactions.
2. Processing speed
Due to its outdated PoW system, Ethereum can only process 15 transactions per second (TPS).
The PoH technology, with its speed and effective energy conservation, has led to an incredible increase in processing times on the Solana Blockchain. Hence, making it run at a fantastic speed of 50,000 to 65,000 transactions per second! As of today, Solana is the fastest Blockchain network that allows for creation of scalable applications.
Because the Ethereum Blockchain has been around for a while, its popularity has given Ether (the Blockchain's native currency)the advantage of having more buyers, making it the second most expensive cryptocurrency in the crypto market. As many users struggle to make transactions on the Blockchain, the system faces some glitches, making it process even slower, leading to astronomical transaction fees.
However, Solana charges incredibly lower gas fees when compared to Ethereum. Because of its impressive scalability features made possible by its PoH algorithm, Solana users don't need to compete for block space before transactions. The open block spaces make transactions on Solana to be processed even faster leading to cheaper fees (sometimes as cheap as a little portion of one penny.)
What's more, is that SOL tokens are cheaper and easier to get than Ether tokens. Ethereum's popularity makes Ether more expensive than SOL. While the price of one ETH is as high as almost two thousand dollars. Buyers can get one SOL can for as cheap as $35.
Since it is a newly created Blockchain, Solana does not have as much popularity as Ethereum. Although, with its high processing power, super-fast speed, and very low fees, Solana has the chance of flooring the Ethereum Blockchain in the future if the network's security is made more impregnable by its developers.
How to buy Solana
Buying SOL is as easy as buying any other cryptocurrency. However, different cryptocurrencies have different maximum supply limits. For instance, SOL has the highest limit of 508 million SOL tokens. When buying other cryptocurrencies, it would be wise to take calculated risks when purchasing SOL. When buying or investing, only buy or invest what you can afford to lose.
To buy SOL, follow these easy steps:
- Locate a suitable crypto exchange platform
Crypto exchange platforms serve as middlemen between crypto buyers and crypto sellers. They are online marketplaces for crypto transactions. They provide the tools for you to buy or sell any cryptocurrency.
The best crypto exchanges typically have unhackable security features and charge low fees for crypto transactions. So, when choosing a crypto exchange, it is advised that you consider this as many crypto exchanges are available.
Compare transaction fees, security measures, and transaction speed before choosing the most suitable for your needs. (Hint: the higher the transaction fees charge, the safer the crypto exchange.)
Moonpay, Kraken, Coinbase, Crypto.com, Binance, eToro, Gemini, and BlockFi are the leading platforms.
- Fund your crypto account
You can fund your account with an existing cryptocurrency that you have, or you can opt to finance it with your bank account.
Crypto exchanges usually allow crypto users to buy and sell with regular currencies. Some crypto exchanges will enable credit cards to fund crypto accounts, but be careful when using this option.
- Make payments for the Sol token you wish to purchase
Type in "SOL" and select the amount you wish to pay for your SOL tokens (e.g., $35, $50, $150, etc.)
- Store your SOL in a wallet
Once your payment has been successful, you can store your SOL by linking your crypto wallet to the crypto account. You can keep it in a hardware wallet too.
- Use SOL token to make other investments.
Aim to invest in other cryptocurrency with your newly purchased SOL.
What is SOL coin used for
SOL is the currency for Solana. Cryptocurrency users use SOL for staking and payment for purchases and other transactions within its ecosystem.
The SOL token is acquired from several exchange platforms. The token's actual price is in performing transactions on the SOL network.
What are the benefits of Solana (SOL)
Scalability is a challenge to the crypto market. Blockchain networks relied heavily on the Proof-of-Work mechanism, which resulted in severe congestion problems.
Cryptocurrencies like Bitcoin aim to inflate their trade fees as congestion increases. However, the congestion has resulted in more harm, like more fees and slow transactions.
- Censorship resistant
The permissionless and publicized nature of SOL allows users access to daily transactions. SOL lets users perform international transactions within seconds for an incredibly cheaper price compared to other popular cryptos. Also, it uses a non-centralized network to ensure unrestricted transactions.
- Delegated staking
SOL is a delegated staking network that allows users to gain some practical benefits over others.
Users make passive income by staking their coins on the platform. The network's staking nature allows new users to learn to stake and partake in blockchain transactions.
Is SOL token a good investment?
The cryptocurrency market is ever-changing. Hence, the need to study the market before selecting the coin that perfectly suits your investment plan.
It's also important to note that a cryptocurrency's past or present worth doesn't guarantee profits in future investments.
SOL is a crypto token with lots of unique features. However, investing in the SOL coin, like other blockchain networks, is associated with certain levels of risk. It's advice you trade with the money you can afford to let go.
Investing in SOL is a choice you have to make for yourself.