Solana is a decentralized computing platform that uses the SOL crypto token to pay for transactions.
It aims to improve blockchain scalability by using a combination of proof of stake consensus and what’s referred to as ‘proof of history’.
Solana was founded by its present CEO Anatoly Yakovenko, a former engineer with chip maker Qualcomm Inc.
He co-founded Solana along with two other ex-Qualcomm engineers and Raj Gokal, an entrepreneur who previously worked in the digital-health sector.
Solana was basically created to deal with traditional throughput problems that existed in the Bitcoin and Ethereum blockchains.
Who uses the crypto?
According to the company, it is getting support from FTX, the exchange launched by billionaire Sam Bankman-Fried –known in crypto circles as SBF.
Solana’s users also include some of the biggest and brightest in crypto such as project Serum, FTX, Terra, akash, Chainlink, civic, dfuse, Formatic, Stardust, Kin, and Tempest.
How it is different to Bitcoin
One big disadvantage of Bitcoin is the requirement of sophisticated equipment which consumes an enormous amount of power.
Besides this, faster transaction speed and lower transaction fee are the two big factors that favours Solana over Bitcoin.
Is Solana here to stay?
There are several signals indicating Solana has a bright future.
Traditionally, venture capital investment is considered a strong indication that a project has the right ingredients for success. From that perspective Solana is in good company.
Solana recently raised $314 million to fund its technological development.