In 2017, Anatoly Yakovenko and his team created Solana, a blockchain project that was focused on improving the efficiency of work at companies such as Dropbox and Qualcomm.
The name of the project was chosen to honor Anatoly Yakovenko's favorite beach in San Diego, which was Solana Beach. The team is based in California.
The team wanted to challenge the dominance of Ethereum in the decentralized finance industry. Due to network congestion and high fees, users started looking for other alternatives.
Solana's potential is immense. It can process over 2,500 transactions per second, which is more than twice as fast as the Ethereum network. Despite the impressive performance of the project, it's still not enough for the cryptocurrency world. For instance, in a game called CryptoKitties, the team used an Ethereum wallet to carry out 30,000 transactions.
Solana's theoretical maximum transaction rate is around 50,000 transactions per second. Although it's far from the processing speeds of major financial institutions such as Mastercard and Visa, the team is working on increasing its network's performance. As its performance increases, Solana's potential throughput will also increase.
Solana utilizes a hybrid protocol that combines the two main consensus algorithms in the blockchain industry: the PoH and the PoS. This combination is more energy-efficient and faster than the previous generation of blockchains. Due to the increasing number of blockchains using PoS, $ETH is expected to switch to this type of algorithm this year.
Solana released a report on November 24, 2021, which claimed that its transactions use less power than two Google searches and 24 times less electricity than charging a cellphone. The company also noted that it will take various steps to minimize the impact of its network on the environment.
Due to the increasing energy consumption in the cryptocurrency trading industry, Tesla has temporarily stopped accepting all types of transactions in $BTC. This issue is important to consider as it directly affects the environment. Due to the nature of transactions, it's also important that the world's financial institutions adopt sustainable practices.
$SOL, the Solana blockchain coin, is in the TOP-10 global cryptocurrencies. With a capitalization of $12,217,946,135.
Solana's value has lost 85% of its value from its November 2021 high. This is attributed to the volatility in the cryptocurrency market due to various factors. Some of these include the US Federal Reserve raising interest rates and the geopolitical situation in Ukraine.
Solana's price started to move in the corridor from $1 to $2 during its initial launch in January 2021. During the bull market in $BTC, the altcoins were pulled in by the positive effects of the protocol's adoption. At that time, a maximum of $214 was also established. Unfortunately, the bear market that started to follow the market has since continued to affect the value of the cryptocurrency.
Although the Solana market is too risky to buy right now, it's still possible to get into it by holding small lots. Due to the varying forecasts from various financial services, it's possible to get into this asset with a target of around $ 600 by 2030.