Buy Solana

Launched in 2020 by Solana Labs, Solana is a blockchain that supports the development of smart contracts. The main problem Solana solves is the slow transaction speed and limited scalability of traditional blockchains, such as Bitcoin and Ethereum. For example, while Ethereum can handle less than 15 transactions per second, Solana reaches speeds of around 50,000 transactions per second.

This speed is possible thanks to a combination of Proof-of-Stake (PoS) and Proof-of-History (PoH). PoH allows the blockchain to record the time between transactions more efficiently, enhancing the network's speed and efficiency with minimal communication between computers.

Solana is popular among both users and developers. For users, Solana offers a blazing fast platform with a wide range of decentralized applications (dApps), from DeFi to games and NFTs. The low cost and high speed also make Solana popular with developers.

Who invented Solana (SOL)?

Solana was founded by Anatoly Yakovenko and Raj Gokal in 2018, and the blockchain was officially launched in 2020. The project is managed by Solana Labs, a team of experienced developers and engineers. Yakovenko, who has a background in software engineering at companies like Qualcomm, brings a wealth of experience to the team. The team is diverse and extensive, with expertise ranging from blockchain technology to business development.

The Solana ecosystem consists of projects and applications that use Solana’s fast, scalable, and efficient blockchain. Notable projects in the DeFi space include Serum, a decentralized exchange (DEX), Raydium, an Automated Market Maker (AMM), and Oxygen, which offers various DeFi services.

In the NFT space, notable projects include DeGods, Degenerate Ape Academy, and y00ts. In gaming, Solana's projects include Aurory, AstroSpace, and Tap Fantasy.

How can you use Solana?

Solana is suitable for a wide range of applications, from financial services to digital art. Some of Solana's key features:

• Decentralized Finance (DeFi): With its high processing speed and low fees, Solana is ideal for DeFi applications, and allows users to conduct complex financial transactions without the need for traditional financial intermediaries.
• NFT Markets: Solana provides a platform for creating and trading NFTs, with benefits such as high throughput speeds and low transaction fees.
• dApp Development: Developers can build decentralized applications on Solana, such as games, metaverses, decentralized exchanges, marketplaces, etc.
• Stablecoins and tokens: Solana supports stablecoins and other types of tokens, making it easier to integrate traditional financial assets into the crypto world.

Solana's blockchain is designed to be fast and scalable, and uses a Proof-of-Stake (PoS) consensus mechanism, complemented by the Proof-of-History protocol. This combination allows for efficient and fast transaction processing.

Proof-of-Stake and Proof-of-History

Solana combines Proof-of-Stake (PoS) with Proof-of-History (PoH) to provide a fast and secure blockchain. In the Proof-of-Stake network, users stake SOL tokens to validate transactions and create new blocks.

PoH adds a timestamp, recording the time of each transaction. This helps speed up consensus without requiring constant communication between all nodes.

Tower BFT

Tower Byzantine Fault Tolerance (Tower BFT) is a modified version of the traditional Byzantine Fault Tolerance consensus mechanism. It is used in conjunction with PoH to determine the time at which a vote was cast, improving network reliability and speed. This helps to reach consensus even when there are faults or malicious actors in the network.

Other technologies that improve scalability

Solana has developed several technologies that optimize network scalability:

• The Gulf Stream protocol accelerates transaction processing by forwarding transactions to validators even before the previous block has been completed. This minimizes the time needed to confirm transactions and reduces memory requirements for unconfirmed transactions.
• Sealevel is Solana's parallel smart contracts runtime. It allows thousands of smart contracts to be executed simultaneously, contributing to a high network throughput.
• Turbine is a protocol that breaks up data transmission between nodes into smaller packets. This allows the network to scale quickly and efficiently, even as the number of nodes increases.
• Pipelining is a mechanism that validates and forwards transaction information. Pipelining uses the computing power of multiple nodes to increase the processing speed.
• Cloudbreak is a distributed data structure that helps scale database capacity. Cloudbreak enables Solana to read and write account information efficiently, which is essential for maintaining strong network performance.

SOL is the cryptocurrency of Solana and plays an important role in the Solana ecosystem. It is used to pay transaction fees, making it essential for processing transactions and executing smart contracts.

SOL is also used for staking, allowing SOL holders to participate in securing the network and earn rewards in return.

Another important aspect of the SOL token is its role in governance. SOL holders have voting rights regarding future upgrades and network decisions, and this facilitates decentralized decision-making.

Solana uses a Proof-of-Stake consensus mechanism, making Solana staking possible. By staking SOL, users contribute to network security and consensus, and receive rewards in return.

You can stake Solana by delegating SOL tokens to a validator, thereby contributing to the security and stability of the network. This can be done through a range of the crypto wallets supporting Solana. Staking rewards depend on several factors, including the SOL quantity and network performance.

At Bitvavo, you can stake Solana and earn rewards. Staking at Bitvavo is simple to do and can be carried out from your Bitvavo account. Just make sure you have enough SOL in your wallet before you begin staking Solana.

Solana is distinctive in the crypto world due to its unique features. Here are the key aspects that set it apart:

• High transaction speed: Solana can process over 50,000 transactions per second, making it one of the fastest blockchains in the world.
• Proof-of-History: This unique consensus mechanism helps efficiently record the time between transactions, significantly improving Solana's speed and scalability.
• Low transaction fees: High processing speed keeps congestion and transaction fees on the Solana network low.
• Developer flexibility: The efficiency and flexibility of the Solana platform make it attractive for building decentralized applications, including DeFi and NFT marketplaces for example.

What's the difference between Solana and Ethereum?

While both Solana and Ethereum are blockchains that support smart contracts, Solana stands out for its speed and efficiency. Ethereum can currently process around 15 transactions per second, whereas Solana can handle over 50,000. This difference is due to the different techniques Solana uses, including Proof-of-History and Tower BFT.

You can purchase Solana from Bitvavo. Our Dutch exchange is accessible to both beginners and experienced traders. Follow these steps to purchase SOL tokens via our website and mobile app:

1. Log in to your Bitvavo account or create a new account.
2. Deposit some money into your account using the option: "Deposit".
3. Head to the Solana (SOL) buy page.
4. Enter the amount in euros or the number of SOL you wish to buy and click "Buy".

After your purchase, your Solana coins will be automatically added straight to your Bitvavo wallet. Selling Solana is just as easy, meaning you can rapidly react to any changes in Solana's market value.

Store your Solana safely in your Bitvavo account, where the majority of customer funds are managed offline in secure cold wallets. Activating two-factor authentication (2FA) is also recommended to ensure additional account security.

You can also store SOL coins in personal software or hardware wallets that support Solana storage. Simply add your external wallet address to your Bitvavo account to securely transfer your SOL coins.