In the era of digital advancement, Solana, with its distinctive advantages, has rapidly gained widespread popularity, surpassing other cryptocurrencies such as Bitcoin and Ethereum. So, what is Solana coin? Why is it considered much better than other cryptocurrencies? Let's delve deeper into understanding SOL in the article below.

KEY TAKEAWAYS

Solana is recognized as the world's first web-scale blockchain and is an open-source, high-performance protocol.
Solana expands its scale through the use of the Proof of Stake (PoS) consensus algorithm, along with Proof of History (PoH).
SOL serves three main purposes: transaction fee payments, and rewards for network validators, and plays a crucial role in the system governance voting process.

1. WHAT IS SOLANA?

Solana is recognized as the world's first web-scale blockchain and is an open-source, high-performance protocol. It opens up numerous new opportunities in the realm of decentralized finance (DeFi).

>> Read more: What is DeFi (Decentralized Finance)?

More than just a blockchain platform, Solana serves as a gateway to easily construct decentralized applications (DApps).

what is solana

What is Solana? (Source: solana.com)

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2. SOLANA BLOCKCHAIN: HOW DOES IT WORK?

Solana expands its scale through the use of the Proof of Stake (PoS) consensus algorithm, along with Proof of History (PoH). To understand it better, let's imagine PoH as a large clock encompassing the entire system.

This clock is in place before consensus is reached. PoH plays a crucial role in verifying the order and chronological flow of events, ensuring that all transactions on the network are recorded in the ledger.

The PoS algorithm is applied to validate and confirm the blocks generated by the PoH creator, as illustrated below:

Solana utilizes a consensus algorithm to scale its operations

(1) When users initiate transaction orders, these orders are transmitted to Solana's network.

(2) The algorithm's Proof of History creator (Leader) timestamps the transaction and links it to a hash function within the transaction chain.

(3) Subsequently, these transactions are sent to confirmation nodes to verify and establish the transaction status before returning to the Leader.

>> Read more: What is blockchain technology?

3. WHAT IS SOLANA COIN?

First introduced in 2017, the SOL coin is the native currency of the Solana ecosystem. The SOL coin enhances scalability by employing the PoH algorithm combined with PoS, based on the blockchain foundation.

This has enabled the network to process up to 50,000 transactions per second, a remarkable leap forward. This performance is a significant factor contributing to the recent increase in the value of the SOL coin.

3.1. Overview SOL Coin Price

According to Klarda in November 2023, the price of the SOL coin was $57.28 per (SOL/USD) with a current market capitalization of $24.25 billion USD. The 24-hour trading volume is $870.25 million USD.

The SOL coin price has increased from its highest point of $36.72 on November 6, 2022, to its lowest point of $9.77 at the end of December. However, the project has demonstrated remarkable recovery capability and continued innovation despite the challenges.

3.2. Solana Coin Price Prediction in 2023 - 2024

2023: Based on technical analysis, indicate a predicted minimum of $54.81 and a maximum of $61.03. The average trading price is expected to hover around $67.24, suggesting a potential return on investment (ROI) of 5.4%.

2024: The price of Solana, according to the analysis, is expected to range from $2,511.13 to $3,766.70, with an average SOL price of approximately $3,138.92.

You can view trading signals and accurately predict Solana prices continuously at Klarda Marketplace, where not only price data but also all social sentiments are gathered to provide the most accurate prediction results.

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4. THE APPLICATION OF SOL COIN

SOL serves three main purposes: transaction fee payments, and rewards for network validators, and plays a crucial role in the system governance voting process.

what is solana

The applications of SOL coin (Source: Solana.com)

Cryptocurrency on the Solana Network: SOL coins can be used on the Solana network to carry out instant money transfers at a low cost.
Staking: To become a validator on the Solana network, users need to stake a certain amount of SOL coins to participate in the transaction verification process and maintain the stability of the network.
Buy, sell, or trade SOL coins: SOL coins can be bought, sold, or exchanged for other currencies or tokens on popular exchange platforms. Trading pairs like SOL/BTC, SOL/BUSD, SOL/USDT, SOL/UST, etc., are common pairs that users can leverage for various trading activities.

5. IS SOLANA COIN A GOOD INVESTMENT?

5.1. Advantages of Solana

The SOL coin demonstrates high liquidity and is currently listed on major exchanges, including Binance, Bilaxy, Bithumb Global, Huobi, OKEx, MXC, Hoo, Gate.io, and many others. This makes SOL easily accessible and tradable on a wide platform.

Simultaneously, the SOL coin is highly regarded for the efficiency of the Solana blockchain, capable of processing up to 65,000 transactions per second, with a block creation time of only 400 milliseconds. Transaction fees on the Solana network are extremely reasonable, less than 0.01 USD.

The Solana ecosystem is rapidly evolving, supporting numerous DeFi and GameFi applications. With these potentials, SOL is sure to play a significant role in the future of Solana.

The SOL coin is listed on many major exchanges.

5.2. Disadvantages of Solana

Currently, users are very accustomed to the Ethereum platform, making the transition to another platform extremely difficult.

Another limitation is that the distribution of SOL coins is still not entirely decentralized, as a significant portion of SOL coins is in the hands of developers and initial investors.

what is solana

The SOL coin is still not entirely decentralized. (Source: BeInCrypto)

If you're still unsure about the price of SOL Coin, please check out Klarda. This is a website with outstanding features called Klarda Indexes. With this feature, Klarda will assess each Coin or Token based on various criteria: Technical score, security score, liquidity score, etc. This will help you evaluate whether the project you are following is a scam and make informed investment decisions.

Klarda Indexes	Rank
Fundamental Score	94.54/100
Technical Score	98.66/100
Security Score	98.91/100
Liquidity Score	90.5/100
Social Score	91.39/100
DEX Score	93.26/100

The overall indexes of SOL coin are very promising, making it a worthwhile token for investment. However, the future of a token is influenced by various factors such as Profile, Markets, On-chain Insight, Social, and Community. Check Klarda for an in-depth analysis of SOL coin!

>> Check Klarda NOW <<

In addition, Klarda is also a website that specializes in providing news related to Blockchain. You can visit and bookmark this website to stay updated on the latest information about Solana, Solana Coin news, and more.

>> Solana Coin News <<

This article introduces what is Solana and how it works. We hope that with the information above, you have gained some understanding of Solana. For more detailed information about Solana (SOL), we encourage you to read further, and if you have any questions, please contact the information below to receive the best support.

Please remember that the content of this article does not constitute financial or investment advice. We are not responsible for any investment decisions made based on the content of the article. Readers are encouraged to conduct thorough research and seek the advice of professionals before making any financial decisions.

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What is Solana Coin (SOL)? Is Solana Coin A Good Investment?

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