How Solana solves the time problem in crypto? Let’s dive in !
What is Solana ?
Solana is a fast -growing blockchain with striking similarities to Ethereum. It is a cryptocurrency that was designed to work similarly to and improve upon Ethereum.
It is often referred to as an “Ethereum killer”. Like Ethereum, the SOL token can be purchased on most major exchanges.
The token’s real value is in conducting transactions on the Solana network. Which has unique advantages.
Solana blockchain – How does it work? – The Solana blockchain uses a proof-of-history consensus mechanism . This algorithm uses timestamps to define the next block in Solana’s chain.
Solana – What is Blockchain?
It is a blockchain platform designed to host decentralized, scalable applications . It can process many more transactions per second . Additionally, it charges lower transaction fees than rival blockchains like Ethereum.
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Does it have own blockchain ?
In short, Solana is a public , open-source blockchain. It was built to host a wide array of scalable decentralized applications (dApps). Like the rest of the world’s most popular blockchains ,Solana supports smart contracts.
Other Layer 1 blockchains have to rely on external central clock to timestamp transactions. But this defeats the purpose of decentralization.
But Anatoly Yakovenko solves this problem by building into the blockchain itself. He solves this issue with proof of history method.
So in this post I have tried to explain what is POS & how it solves the time problem which makes the blockchain faster.
So keep reading this post till the end .
Let’s go back in time…
Historically, people used sun to tell time.
But when transport got fast (like trains) ,they made “time zones” to be on the same time and schedule.
Nowadays, things like phones and computers use central clocks to make sure the time is right.
But how do you determine time when there is no single , centralized clock?
Problem in Blockchains :
When you have multiple systems, it’s hard to keep track of time accurately (distributed systems)
In order to process fast transactions ,it is necessary to measure time in small intervals.
Other chains like ETH use external programs to timestamp transactions . Rather than having it built in.
This relying on external programs for timestamp defeats the purpose of decentralization.
Move Quick with time? (1)
Solana solves this externally relying problem by a tech called “Proof of history”
This allows the “timestamp of transactions ” to be built into the blockchain itself.It
This is done through Verifiable delay function (VDF) by POH
With VDF ,it ensures that the block producers (validators) add new information in a tamper-proof manner.
Move Quick with time ? (2)
Then POH sets a time limit on transactions ,making it impossible to fake or change the data.
Those block producers are able to to do this by using SHA-256 which helps to keep track of time
This means that by looking at the system (the ledger) , you can figure out when certain events ( transactions) happened.
Solana – The scenario is about sending a letter on a train from New York to Chicago with stops in different cities
|Other Railways||SOLANA Railways|
|Verifying the correct train for a letter would take a lot of time as there is no schedule or marking on letter.||Verifying the correct train for a letter is fast because everytime the train stops ,letter gets a stamp from that city with the time.|
|Station Master would have ato contact each other to confirm that letter is on the correct train.||They can easily verify the letter is the right train by checking for stamps from previous cities.|
|The process is affected by inaccurate or tampered information.||The process is not affected as it is based on stamps from previous cities.|
|The process takes hours.||The process take mins.|
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Solana price today is $23.35 with a 24-hour trading volume of $874,291,313. SOL price is down -5.9% in the last 24 hours.
It has a circulating supply of 370 Million SOL coins and a total supply of 539313023.935086
Read here Market stats
Powered by its unique combination of proof of history and what’s referred to as delegated proof-of-stake algorithms.
The main problem Solana was attempting to solve was Ethereum’s scalability issues. Delegated proof-of-stake is a variation of the more traditional proof-of-stake algorithm.
For those who need a refresher ,the proof-of-stake mechanism is a process of transactions . For creating new blocks in a blockchain. By using a system of validators.
It brings users several advantages with its delegated proof-of-stake mechanism. The history algorithm add a layer of security. To the network.
In essence, Solana addresses 2 out of 3 issues identified by Ethereum co-founder Vitalik Buterin.
In his blockchain trilemma. It is of scalability, security and decentralization .
This is designed to address two parts of the trilemma : security and scalability. SOL’s proof of history algorithm provides unique security for the network.
While the speed with which the Solana platform performs computations allows for increased scalability.
Solana’s all time high was in November 2021. When it peaked at nearly $260 during the height of crypto bull run.
Is Solana better than Ethereum?
Ethereum is more popular, but Solana has faster speeds and lower transaction costs.
Does Solana have a future?
SOL is currently ranked as the 11 th biggest crypto asset . If we are talking market capitalization. Last but not least, Solana is also included in the list of “the coins that will explode”.
Could Solana be the next Bitcoin?
Solana is the one cryptocurrency with the greatest potential . To become the next Bitcoin.
It has an unbeatable value proposition and a rapidly growing ecosystem of users ,developers . And brand advocates besides entrepreneurs.
Who owns the most Solana?
As of 6 January 2023, Alameda was said to still hold over 48 million locked and stacked SOL tokens . Representing 66.1% of all locked stake.
Who owns Solana blockchain?
Named after a small Southern Californian coastal city, Solana is the brainchild of software developer Anatoly Yakovenko. Yakovenko first proposed the innovative blockchain in 2017 .
And Solana launched in March 2020. It has quickly become a popular crypto . Ranking among the top 15 cryptocurrencies by market cap.
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