What is Solana and its features and the use cases

 

What is Solana, its features and the use cases?

Since the introduction of Bitcoin network in 2009, blockchain technology has really advanced with the introduction of myriad of blockchains such as Solana (in this post). Solana is a modern blockchain, significantly differing from Bitcoin network, as it makes use of modified cryptographic algorithms to create a fast and scalable blockchain.

What is Solana?

Solana is a blockchain network founded by the Swiss Solana Foundation (a non-profit that focuses on development of the blockchain system) and was launched in the year 2020. Solana aimed to make Solana as the world’s most ‘censorship-resistant network’ in the world. The blockchain is based on 2017 whitepaper by Anatoly Yakovenko, a software engineer who had worked at Qualcomm and Dropbox.

Yakovenko devised a system for validating transactions based on an innovative concept called ‘proof-of-history’. Proof of history allows blockchain nodes to validate transactions simultaneously, enabling blockchain network to complete transactions at a faster rate – close to conventional payment systems like VISA.

Solana is implemented in the Rust language for its memory safety features and the lack of garbage collectors.

Features of Solana

Solana is a 4^th gen blockchain, and it comes with all the bells and whistles of its predecessors, with additional/more features. These new features allow it to perform fast transactions in a scalable way. Some of the features of Solana are:

·      Open-Source Code: Any one can download the source code and implement it for personal and commercial use.

·      SOL: SOL is the currency of Solana. SOLs are also available in smaller denominations called Lamports. Lamports is named in honor of a famous American computer scientist Leslie Lamport who is known for the work of distributed systems and computer efficiency.

·       PoS: Solana allows users to make SOL coins similar to that of Ethereum.

·      PoH (Proof of History): This is the core innovation of Solana. PoH is a consensus method that takes the time of a transaction and merges it with PoS to process the transaction. The ‘time’, in this case, is based on block height, which is simply the block number where the transaction is taking place. Combined with Verifiable Delay Function (VDF) algorithm, the blockchain can efficiently timestamp events taking place. Each node can add a block without specifically agreeing to the other node. The nodes agree to the PoH timestamp instead. PoH uses a synchronized clock for the entire blockchain. PoH can be used by a validator to get replay of events within the blockchain. The net result is extremely fast, with as many as 50,000 TPS.

·      Layered Services: Solana uses several services on top of the network to improve efficiency, similar to a technology stack where different layers perform a specific function. With these services, Solana can be used to build dApps and DeFis.

·      Horizontal Scaling: Another core innovation of Solana is horizontal scaling, which allows it to add more computers to its processing network to distribute computing resources.

·      Turbine Protocol: Solana uses this protocol to transmit information in smaller pockets to nearby node clusters called neighborhoods. This feature allows transaction validation faster.

·      Leader nodes on rotation: Leader nodes are expected to validate transactions within a cluster. A single node is assigned to be a leader by the network. This increases efficiency within a node cluster. And leader nodes are rotated periodically, preventing malicious or non-functional nodes from blocking transactions and slowing down the network.

·      Miniscule block times: Solana has a 400ms block time i.e., the short block times make transactions extremely fast and allow it to easily process thousands of transactions per second.

How is Solana different from other blockchain?

·      High Censorship Resistance: Censorship (in block chain) refers to the blockage of network activity by preventing specific nodes from joining the network and validating transactions. Censorship prevents users from adding new blocks to the blockchain. Censorship can be attributed to malfunctioned nodes or intentional sabotage by malicious threat actors. Solana is designed to curb blockchain censorship through its rotating validator nodes. For each validator, smart algorithms calculate the minimum number of nodes needed to be compromised to the censor the network.

·      High Transaction Speeds: While BTC and ETH has a transaction speed of 7TPS and 30TPS respectively, Solana can perform transaction at blazingly quick speeds.

·      High Scalability: Solana can handle high network traffic volumes, unlike many first and second-generation blockchain networks.

·      Interoperability: Solana has a layered architecture that makes it interoperable with other applications and blockchains for managing and trading digital assets like cryptocurrencies, NFTs, or personalized records.

Use cases of Solana

Solana is home to several projects that take advantage of its scalability and flexibility. The following are some of the use cases of Solana:

·      DeFi: DeFi provide a consolidated range of online financial services without the need for any conventional banks. Examples include Orca and Serum.

·      Lending Protocols: Few developers have created systems that allow users to deposit or lend currencies over the Solana blockchain. Users can earn interest or configure automated repayments. Example include Apricot Finance and Solend.

·      Solana has been used to create NFT applications that allow users to mint and trade digital artwork. Examples include Solana NFT such as Metaplex and Solanart.

·      Games: Solana is home to some games that have Play to Earn (P2E) systems which allow players to earn cryptocurrencies and NFTs. Games that can be played on online metaverses such as Multiplayer worlds like Chainers and Aurory; and Survival-puzzle games like Naga Kingdom.

·      Web3 Apps: One of the most exciting developments over the Solana blockchain includes new apps that take advantage of the latest internet technologies. Examples include Audius, Squads, Alchemy and Dispatch.