Over the past year, the growth rate of the Solana cryptocurrency (SOL) has reached 10,000%. Thus, the Solana network has become a kind of “Ethereum killer”. The price increase for SOL reached an all-time high in November, and the value of the Solana coin has been falling since then. At the moment, Solana is barely managing to keep its price above US$170, resisting further declines. What are the growth prospects for the Solana cryptocurrency in the future? Let's try to figure it out and make a SOL forecast for 2022.
Solana is popular for its blockchain ecosystem. It is one of the fastest growing decentralized platforms in the world, with over 850 projects being implemented. The Solana platform supports decentralized applications (dApps), smart contracts, and even games. Overall, the platform looks very promising. So why then did the price of Solana (SOL) go down?
Solana recently suffered a DDoS attack, causing investor backlash. The blockchain remained online, but the network speed dropped significantly. This is not the first time such an incident has happened. Grayscale explains this in its report by saying that the Solana network uses blockchain technology that is vulnerable to attacks. Also, why the Solana cryptocurrency (SOL) is falling in price can be explained by the general dynamics of the bear market.
Experts believe that these factors have briefly hit SOL in the face and the price of Solana (SOL) is expected to rise soon. Overall, the forecast for Solana (SOL) cryptocurrency for 2022 looks very positive.
History of Solana and team
Solana's story begins in 2022. It was then that Anatoly Yakovenko founded this project. He collaborated with Greg Fitzgerald and Eric Williams to achieve his goal of creating an infinitely scalable blockchain. Notably, Yakovenko used his past experience as a Dropbox engineer to help Solana achieve its goals. Today, Solana is recognized as the leading fourth generation blockchain.
Shortly after its introduction, Solana teamed up with another promising blockchain protocol, Serum, to create a DEX. Serum used the advanced system created by Solana to develop a non-custodial spot and derivatives exchange. DEX has been received with excitement by the crypto community due to its new features. Specifically, Serum has created a central on-chain limit order book (CLOB) that is updated every 400 milliseconds to ensure traders quickly receive up-to-date asset prices.
Prospects for Solana
Solana is a promising project that attracts the attention of both partner companies and investors. Solana is suitable for resource-intensive systems and applications focused on a large number of users and transactions: exchanges, marketplaces, file storages.
The alpha version of the network has not yet been launched, but the project is already in the top 10 in terms of capitalization - this is an excellent indicator.
Solana doesn't have a clear roadmap right now. In March, Anatoly Yakovenko noted in an interview that almost everything that could go wrong with the development of the project went wrong. The project team has an ambitious goal of attracting a billion users and is confident that Solana will cope with this load.
Near-term technical goals include reducing block generation time to just 80ms, and the trading timeframe (the timeline for displaying stock quotes) on the DEX to just 1ms (by comparison, Binance's smallest trading timeframe is 1 minute). Yakovenko also noted that when DEXs become more efficient than centralized exchanges, the latter will switch to using a decentralized blockchain, which ensures this higher efficiency.
But having the most innovative technologies is not everything in the crypto sector. Solana's bright future is far from guaranteed. Even with all its advantages, the project is unlikely to displace Ethereum from the throne of the king of tokenization. Moreover, competitors, for example, Algorand, Cardano or Polkadot, are hot on its heels and have already launched mainnets.
Time will tell whether Solana will be able to solve the scalability trilemma and attract the desired billion users to its ecosystem.
Scalability
Scalability issues continue to plague the crypto market. The blockchain's early dependence on the Proof-of-Work consensus mechanism led to serious congestion problems. Top coins like Bitcoin and Ethereum were designed to increase transaction fees as the network becomes more congested. Unfortunately, this led to serious problems for both of these networks. Ethereum is currently bursting with new projects, partly due to the recent rise of DeFi platforms. Unfortunately, this overload results in increased fees and transaction delays for the average user.
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Solana avoids these problems by implementing systems that allow the network's transaction throughput to scale proportionally to its throughput. For example, Bitcoin can process seven transactions per second (tps), Ethereum can process about twelve. According to the developers, Solana is capable of processing 50,000 transactions.
How Solana (SOL) works
In order for Solana to achieve all of its goals, the developers had to think outside the box. Thus, the network is filled with proprietary systems. These systems work in tandem to create an extremely useful and reliable blockchain network.
- Consensus mechanism
Solana is a delegated proof-of-stake (PoS) network. DPoS networks differ from PoS networks in several ways. Both mechanisms use validators to process transactions. Validators are selected based on their total ownership in the network. The more SOL you have, the higher the chances of being chosen as a validator. This strategy ensures that only those who belong to the network occupy this position.
Validators receive rewards when they approve transactions and add them to the blockchain. Those who are not Validators can make easy profits by delegating their assets to one of the Validators. This system allows everyone to participate in protecting the network and allows users to decide which nodes deserve transaction verification. DPoS networks are several times faster than PoS blockchains. The average block time for Solana is 2.34 seconds. However, bench tests have shown that the network can approve blocks in just 1.6 seconds. Considering that Bitcoin takes 10 minutes to complete this task, it is easy to see why DPoS blockchains continue to gain traction.
- Proof of History (POH)
The POH engine plays a vital role in the Solana ecosystem. This protocol improves the efficiency of the blockchain by integrating timestamps into every transaction approval. These timestamps allow nodes to sequence events. The system thus serves as a cryptographic clock for the network.
- Tower BFT
The Tower BFT system improves network responsiveness by allowing validators to vote on the state of the ledger. This mechanism also records previous votes and uses them to speed up verification, allowing validators to simply reference their previous votes rather than running the entire transaction chain. Thus, Tower BFT can be considered as an updated version of the Practical Byzantine Fault Toleration (PBFT) system that is present in other DPoS blockchains.
- Gulf Stream
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The Gulf Stream has done away with the mempool concept. The mempool is a waiting area for transactions before they are selected to move on to the next block. In Bitcoin, the mempool is used to allow miners to choose the highest paying transactions to process first. Gulfstream is introducing a new strategy that allows the network to forward transactions to validators before the current block of transactions has completed with its approval.
- Sealevel
Sealevel gives Solana a serious advantage over the most popular smart contract-based networks in use today. Solana uses Sealevel to execute smart contracts that can run in parallel. This system also allows similar smart contracts to use the same protocols. This strategy means that thousands of smart contracts can be executed simultaneously and in parallel without degrading network performance.
- Conveyor processing
As part of its open hardware design, Solana includes a transaction processing unit known as pipelining. The protocol works by assigning a stream of input data to different hardware depending on its specifications. This system helps reduce block verification time.
- Turbine
The turbine is another patented technology introduced by Solana. This blockchain broadcast protocol takes important data and breaks it down into smaller pieces. These packets can be sent to nodes faster and using less bandwidth.
- Cloudbreak
Cloudbreak is a database of Solana network accounts. This system improves on previous iterations by allowing the system to simultaneously read and write data. Cloudbreak works in tandem with the Pipelining and Archivers protocols.
- Archivers
Archivers play a critical role in data storage. These are hardware storage mechanisms that provide faster access to critical network information. In particular, validators can obtain the network transaction history directly from archivers.
- SOL
SOL is the native token of the Solana network. This versatile cryptocurrency allows users to earn passive rewards through delegated online staking capabilities. Notably, SOL is strictly limited to 489 million coins.
Solo
The meaning of the word Solo according to Efremova: Solo - A piece of music or a separate part performed by one instrument, one singer, dancer.
Alone, without partners (about performing music, dancing).
The meaning of the word Solo according to Ozhegov: Solo - Without the participation of others, alone
Solo
Performance of such a work by one person
Solo
A musical work or part of it intended for one performer
Solo
Relating to such a work, performance
Solo in the Encyclopedic Dictionary: Solo - (Italian solo - from Latin solus - one), performed by one singer or instrumentalist (with or without accompaniment) an independent part or episode of a work.
city in Indonesia; see Surakarta.
The meaning of the word Solo according to Ushakov’s dictionary: SOLO
(Italian solo, lit. one).
1. uncl., cf. A piece of music or an excerpt for one instrument or one voice (with or without accompaniment; musical).
Violin
solo 2. uncl., cf. Dance performed by one person (theater). This artist is assigned a solo
in the ballet The Nutcracker. 3. adv. without the participation of others, independently, separately (about the performance of musical works or dance). Play, sing, dance something. solo. Perform solo. 4. adv., transfer. Alone, unaccompanied by others (colloquial joke). Came solo. Solo bill (fin.) - a bill with one signature, for which only one person is responsible.
The meaning of the word Solo according to Dahl's dictionary: Solo
see soloist.
The meaning of the word Solo according to the Brockhaus and Efron dictionary: Solo
— see Surakarta.
Solo
(city) or
Soerakarta
(Solo, Soerakarta) - a city on the island of Java, on the navigable river.
Solo. The residence of the Javanese Emperor, the nominal ruler of the island. Connected dor. with Yogyakarta and Samarango. S. - ancient Kapmacypa.
In terms of population, it is the second city in Java and would be the first if Batavia and Meestre-Cornelis were considered two separate cities.
In the center S. Kraton, the palace of the susukhunan (emperor), constitutes an entire city in itself, with courtyards, barracks, a harem, kiosks and gardens (10,000 courtiers live within its boundaries); but right there you can see the Dutch fort of Vastenburg, whose cannons are pointed at the emperor’s residence. In Europe parts of the city protest, church, theater, 3 libraries, shops, many workshops. Since S. became the center of Javanese railways. dor., the city became very lively, trade developed, and even the emperor himself did not want to leave S., as required by Javanese custom, which prescribes changing the capital every century. Zhit. 130000. Solo
(r.)
Bengawan
, or
Sambaya
(S olo, Bengawan, Sambaya) is the largest river on the island of Java, originating in the prov. Soerakarta and, having traveled a distance of about 500 km, flows into the Java Sea, opposite the west. tip of Madura Island.
Definition of the word “Solo” according to TSB: Solo - Solo (Italian solo, from Latin solus - one, only) in music, 1) a part or episode of a polyphonic work, possessing special melodic relief and significance and performed by one singer or instrumentalist (in in some cases - and several musicians). 2) A designation applied to instrumental pieces intended for one performer (unaccompanied or accompanied).
Solo - Solo (Solo) river in Indonesia, the largest on the island of Java. The length is about 540 km, the basin area is about 17 thousand km2. It originates on the slopes of the Lavu and Meshali volcanoes, flows mainly in a wide, often swampy valley, strongly meanders in the lower reaches, and flows into the Java Sea. It is full of water from October to May; at this time of year it floods heavily. Navigable for 200 km (in the lower reaches the riverbed is straightened and canalized). The S. valley is densely populated and cultivated. In the north - Messrs. Surakarta, Chepu, Bojonegoro. On the northern bank near the village of Ngandong in 1931-33, the remains of paleoanthropes were found. Solo - Solo (Solo) is the second name of the city of Surakarta in Indonesia.
Sunny Solo Solo-Bill
Advantages and Disadvantages of Solana
It's easy to see the benefits of a network that can scale to meet the demands of the global economy. Additionally, this scalability makes Solana the best blockchain for Dapps such as DEXs and staking protocols. Here are some of the main benefits you get when you join the Solana network.
- Censorship resistance
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Solana's distributed nature makes it ideal for everyday commerce. You can conduct global transactions in seconds for a fraction of the cost of the most popular cryptocurrencies. The best thing is that since there is no central control over the network, there is no one who can stop, block or cancel your transactions, which is not the case with fiat currencies.
- Delegated staking
As a delegated staking blockchain, users receive a number of serious advantages over competitors. First, anyone can earn passive income by posting their SOL online. Staking protocols continue to gain popularity in the market because they are easier for new users to learn and provide more consistent rewards compared to trading.
Reasons for the current SOL rally
The current rally began along with the general growth of the crypto market. Also, the rise in SOL quotes was facilitated by the fact that by mid-August the growth of other popular cryptocurrencies had slowed down, and investors switched to large, but undervalued projects that lagged behind the leaders in growth rates. So, along with SOL, XRP, ADA and DOGE have been growing well in recent weeks.
The SOL rally also has objective factors:
- At the end of July, Solana Labs sponsored the Lollapalooza music festival;
- On August 4, the Star Atlas metaverse launched the NFT marketplace Galatic Marketplace on the Solana blockchain;
- On August 9, Wormhole (translated as “Wormhole”) was launched - a decentralized bridge protocol between Solana and other leading DeFi projects, including Terra, Ethereum and Binance Smart Chain;
- On August 12, Mango Markets, a platform for spot markets, lending and perpetual futures built on Solana, raised $70.46 million in a token sale. Mango Markets receives liquidity from its own pools and the decentralized exchange Serum, also powered by Solana;
- On August 15, a new NFT project, Degenerate Ape Academy, was launched on the Solana blockchain. A collection of 10,000 unique cartoon monkey images sold out in just eight minutes on the Solanart marketplace. Currently, the monkeys are only available on the secondary market, such as the OpenSea NFT marketplace. The highest price for characters already exceeds 100,000 SOL - more than $6.8 million at current prices.
How to buy and sell Solana
This popular token can be found on the following exchanges: Binance, Huobi Global and OKEx. Binance is the best option. If you want to quickly gain access to exchangers with the best rates, use the bestchange.ru .
Storing SOL is also easy. The project developers especially recommend Trust Wallet. This mobile wallet is free to download on both Apple and Android. Coin98 is another recommended mobile choice that offers a lot of cool features to simplify your storage needs. Of course, the safest option is a hardware wallet.
Exchange or swap currencies in the Phantom wallet
If you have another coin, not Solana, perhaps USDT, you can make the exchange in your wallet.
Exchange in Phantom wallet
Open your Phantom wallet, click on the exchange icon (bottom center) and select which currency you want to exchange for.
It’s more profitable to do all these exchanges and purchases of currencies on the Binance exchange, but if you don’t have an account or don’t want to bother, do it directly in your wallet, the commission will be a little higher.
The slippage limit is 1%, what is it? This is the percentage of price slippage at the time of exchange. Rates on the cryptocurrency market change very quickly, the % slippage limits the range of changes in the exchange price. Those. if the price changes by more than 1% at the time the “Show Order” button is clicked, the exchange will not occur.
Next, click “Show order” and “Swap”.
