Solana(SOL)Full Review: Another competitor to Ethereum?
Updated: Nov 14, 2021
What is Solana?
Solana is a decentralized blockchain designed to enable globally scalable, user-friendly apps. Solana is the world's fastest blockchain and the fastest growing crypto ecosystem, with over 400 projects ranging from DeFi to NFTs to Web3.
Many attributes including:
- Solana's scalability assures that transactions for both developers and consumers stay less than $0.01.
- Solana is all about speed, with block times of 400 milliseconds. And as hardware improves, so does the network.
- Solana is not only quick and cheap, but it is also immune to censorship. In other words, the network will stay available for apps to run freely and transactions will never be halted.
The Solana architecture's purpose is to show that there is a collection of software algorithms that, when used together to create a blockchain, remove software as a performance barrier, allowing transaction throughput to increase proportionately with network capacity. The design then goes on to achieve all three desirable qualities of a true blockchain: scalability, security, and decentralization.
Overview of Solana Economics
Solana's crypto-economic system aims to establish a healthy, long-term self-sustaining economy by aligning participant incentives with network security and decentralization. Here validation-clients are the primary players in this economy.
Protocol-based awards and transaction fees are the two major avenues of participant remittances. Protocol-based incentives are created by issuing inflationary issuances according to a protocol-defined inflation schedule. The overall protocol-based incentive supplied to validation clients will be comprised of these awards, with the remainder generated from transaction fees. These protocol-based incentives are calculated per epoch and divided throughout the active delegated stake and validator set (per validator commission). Transaction fees are transfers from one participant to another that are associated to the network interactions as a motive and compensation for their contribution.
Solana is a serious player in the game along with Ethereum , Avalanche , Polkadot and Luna. I personally think that none of these Altcoins can really compete with Ethereum, but if there is one serious player, that would be Solana. Solana offers a really fast connections and transactions and compared to Ethereum, these are a lot more faster and a lot more cheaper compared to Ethereum large fees. With the boom of Solana in the last couple of months , a lot of money has flowed into it, and i think these will help Solana advance and upgrade. This can bring the price even further. Solana is also one of the leading NFT compatible platforms and with the boom of the NFT industry this can really make a good long term investment.
About Staking (SOL)
There are 2 good options for staking SOL :
Exodus - Exodus is one of the best ( it is the Best No.1) Safest free wallet at the moment
-Exodus offers a 6,27% APY on your SOL - The best thing on Exodus is that it pays your share every couple of days and it automatically stacks the rewards on your balance , so its basically auto-compounding. So if you stack your SOL on Exodus and you don't take out rewards for a whole year , the 6,27% will become much more.. maybe even 20% i haven't really done the math but i staked 5 SOL on 6,27 % APY and after 3 months i have total reward of 0.05 SOL (which is 10%) in only 3 months...
2. Binance - is one of the best exchanges in the world
-Binance has 2 offers available at the moment of writing this article :
-Stack your SOL for 30 days lock up period - and get 9,2 % APY calculated
(You can't trade or touch your stacked SOL for the for the Locked period, but you will be getting daily rewards from staking)
-Stack your SOL for 60 days lock up period - and get 9,9% APY
I am using Exodus and i haven't really done the math but i staked 5 SOL on 6,27 % APY and after 3 months i have total reward of 0.05 SOL (which is 10%) in only 3 months...
Coin score: 9/10