Solana was founded in 2017 by Anatoly Yakovenko.
The blockchain world does not stop growing and Solana has had an important upturn as a blockchain, its success is based on transaction speed and confirmation times, I will try to explain in a simple way how this blockchain works and why it is faster than the other existing ones comparing them with BTC and Ethereum.
It is a third generation blockchain that uses proff of staking as consensus protocol, however, they have a unique way to determine the time of a transaction called proff of history, all solana transactions are encoded using the sha256 hash function, this input produces a unique output that will be part of the input for the next hash, managing the order of the transactions within the hash, adding to the chain the clear and precise order of each of the chained blocks assigned by a validator, the time of the transactions is measured from the time the random leader node marks the time from a new transaction until the time it recognizes a majority of votes by the validator nodes, solana has the ability to operate in block time of 400 milliseconds, we are talking about 50K per second!,the time it takes to notify is proportional to the square of the number of nodes.
The proof of history is not a feature of consensus mechanism, it is an improvement that optimizes the confirmation time in transactions in solana, focused on the order, in addition to it there are other features that solana defines as fundamental for the speed and security of its blockchain
such as:
-Proff of History.
-Sealevel.
-Tower BFT.
-Pipelive.
-Turbine.
-CloudBreak.
-GulfStream.
-Archivers.
Bitcoin groups transactions with a single timestamp and each block has to be validated in consensus with other nodes which makes the validation system take considerable time until a node confirms the existence of the blocks in the entire network. The notification time is approximately 10 min and in the case of Ethereum the execution per block is 15 sec.
Blockchain de Solana is still in its beta version and has had this exponential growth, due to its scalability, unlike other blockchain dedicated to a single objective, the project has been growing according to the demand and needs of the growth of cryptocurrencies, expanding and partnering with new projects that generate greater functionality in different markets.
A clear example is the functionality of smart contracts where it allows developers to create projects based on blockchain technology, scalability and low costs have driven decentralized projects such as raydium, serum and the diversity of wallets such as Binance, Atomic, Ascendex, Exolix, Mxc, Coindcx, Gate, Okex, CointEX, Solflare, Blockfolio, Exodus, Magic, Trustwallet, Swipe, Bonfida, Ledger, Phantom, Orca, Huobi, P2pWallet, Torus, among others.
In addition to allowing interoperability with other infrastructures, identifying itself as scalable.
Solana also owns its coin (SOL) which it trades on its blockchain, eventually becoming a top 10 cryptocurrency by market capitalization.
In less than two years, the Layer 1 protocol has attracted a large number of developers and has evolved to serve more than 400 applications, many of which focus on decentralized finance (DeFi), NFTs, as well as Web3. The world�s largest digital currency asset management, which has just established a Solana Trust that can provide wealthy clients with access to SOL, has taken note of Solana�s performance.
Solana�s success has been due to its appeal for enabling fast transaction speeds at a low cost, especially when compared to other popular chains.
Solana�s top 10 projects in 2022
Solana�s ecosystem already has a total secured value of more than $9.8 billion.
Solana�s top 10 projects:
1. Solana.
Solana�s basic objective is to serve scalable applications. Solana has a transaction rate of up to 50,000 per second. Visa, in contrast, can only process half that rate, while Ethereum can only process 54 transactions per second. Solana�s excellent speed, as well as its scalability, are due to its broad support. Instead of Proof of Stake or Proof of Work, it employs a novel notion known as Proof of History.
Solana currently has a lot of potential, but it is not without its flaws. In addition to its speed and fees, it has several drawbacks. Users question whether Solana�s security is up to par, given that it is much newer than such well-known names as Ethereum. In addition, the current price of Solana (SOL) is $32.50.
2. Raydium.
Raydium is a Solana-based automated market maker (AMM) that uses the central order book of the decentralized exchange Serum to offer lightning-fast transactions, pooled liquidity, as well as additional features to generate performance.Improves Ethereum�s gas prices and transactions are faster.
Token trading is on the rise, Projects could also use the platform to function as a market maker as well as exchange. In addition, the current price of Raydium (RAY) is $3.54.
3. Serum DEX.
Serum is a decentralized exchange (DEX) technology as well as ecosystem that offers decentralized finance at exceptional speed as well as cheap transaction costs. It is based on Solana, so it does not require permissions. The central limit order book on the Serum blockchain allows ecosystem partners to exchange liquidity, as well as enable market-based functionalities for institutional and retail clients.
The control or rules is through smart contracts, consumers would have full control over transactions. Inter-chain trading is supported by Serum Dex, allowing users to optimize other platforms such as ETH rivals.
4. SolFarm.
This is a DeFi app that has raised millions of dollars in funding, which means you have a lot of investors and communities believing in the project. By using a blockchain, the platform allows people to take advantage of low cost as well as high speed.
Despite being near the top of the list, SolFarm with the TULIP entry now has a market cap of $11 million, much lower than its early days.
5. Saber.
Enables liquidity for consumers to easily trade between stable asset pairs, which has a massive effect on the Solana ecosystem. It provides USDT/USD as well as SOL liquidity as well as Bitcoin pools. The market maker uses a cross-chain strategy that connects Ethereum, Zeal, BSC, as well as Terra, among other blockchains.
Saber is a major global trading and liquidity network with an open architecture. Saber has quickly become one of the most popular stablecoin exchanges in the Solana ecosystem. It is valued at $0.071.
6. Orca.
It is among the most popular Solana-based decentralized exchanges. The exchange has a huge trading volume, with a total locked value of $516.6 million. The exchange was launched when Solana had very limited infrastructure.Orca allows tokens to be exchanged cheaper, faster and more reliably than any other Ethereum DEX. Users can also generate exchange commissions by providing liquidity to an exchange group.
7. Larix.
Has been the first Metaverse-based Finance Protocol in Solana, with a dynamic interest rate model and much more capital-efficient risk management pools, allowing a wide range of collateral types, crypto tokens, stablecoins, synthetic assets, NFTs, as well as other assets to be fully utilized in a secure manner.
Soldex.ai, Solana Build�s decentralized exchange, is also collaborating with Larix Protocol. Soldex would benefit from Larix�s exposure as a result of this relationship. At the same time, Soldex�s status as the fastest third-generation decentralized exchange would benefit Larix. In addition, the current price of Larix (LARIX) is $0.005702.
8. Mango Market.
The site started as a lending platform before raising $70 million in August 2021 through its sale of MNGO tokens. Mango Markets has now grown to have included Mango DAO, which now has a cash balance of $871 million, as well as 92 DAO proposals.
Daffy is one of the originators of the DAO ideas. They are investing $1.5 million in Mango Labs to help them develop a mobile app, improve marketing capabilities, as well as generate unique Manga v4. This DAO, according to Daffy, should help Mango become censorship resistant. In addition, Mango�s current price (MNGO) is $0.1546.
9. Parrot Protocol.
The Parrot Protocol appears to be a DeFi network that gives consumers access to the value locked into DeFi systems. The initiative has its own stablecoin API that is pegged to $1, allowing holders to borrow from lenders while keeping their value locked. Anyone who needs to lock their tokens can use Parrot Finance�s government token.
Thousands of DeFi systems have billions of dollars of value locked up in them, which can be converted into various yield-generating tokens such as Uniswap LP tokens or AAVE interest tokens. There are not many applications for these LP tokens. Since their risks are unclear, as well as their units of account are inappropriate for human use, the value stored in DeFi as LP tokens is unattainable.
10. Mercurial Finance.
The first Solana-based project to focus on stablecoin trading was Mercurial Finance.Mercurial is developing dynamic vaults, which appear to be market-making vaults that offer very minimal slippage trades while increasing LP profits through dynamic commissions as well as variable capital allocation. Mercurial expects to build the next era of market making systems by fully utilizing the potential of Solana. Dynamic vaults and dynamic commissions are two key additions to the standard AMM concept.
The total value of the platform is currently $62.57 million. The token can also be found on FTX, Gate.io, Raydium, as well as Serum Dex. The Marcuial Foundation receives 50% of the token allocation, 10% goes to the core team, as well as 20% is reserved for private sale. In addition, Mercurial�s current funding price (MER) is $0.1567.
My thoughts.
The growth and opening of new projects in solana, in addition to its fast architecture, place it as a strong contender to Ethereum, Ethereum continues to win the battle for its wide range, but many specialists and investors are betting on new options that save on fees and excessive network congestion.
The broad participation of developers and communities allows the project in general to continue to grow in audience and participants, the diversity and scalability on different platforms and wallets has allowed it to expand in the market.
The projects led contain a wide range of business niches where they venture into the different developments of the web3 and metaverse, such as NFT markets, loans, dynamic vaults, Defi systems, DAO, stablecoin API, Finance Protocol, decentralized exchanges. A range of opportunities that in my humble opinion will contribute in a positive way to the growth of the Crypto world.
