What Is Solana Blockchain? How Does It Work?

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If you are into trading cryptocurrencies, you have probably heard of the Solana project. This is the name of the blockchain and cryptocurrency, one of the most popular digital assets in all cryptocurrency rankings these days.

Solana is a blockchain that enables the development and deployment of decentralized applications (e.g. blockchain gaming, NFT markets, DeFi products, metaverse, etc.) Solana is popular for the following reasons:

  1. It offers the highest network throughput (65,000 transactions a second).
  2. Transaction fees are minimal ($0.00025 per transaction).
  3. Staking SOL crypto.

With these advantages, the Solana blockchain has the potential to surpass the Ethereum network in popularity, so the SOL coin price has good prospects for growth.

Solana blockchain is based on the Proof-of-Stake with the elements of Proof-of-History mechanisms to achieve consensus, which makes transactions so fast and efficient compared with the former Ethereum network that used to operate on the Proof-of-Work protocol (now Ethereum is also working on PoS). Staking is much less costly than mining; it does not require advanced mining machines and equipment and consumes much less energy. Thus, staking is an eco-friendly way to generate crypto coins.

Solana Coin: What is it Used for, and Where to Buy It?

As a crypto asset, Solana is used for transaction fees and smart contracts execution in the network. Also, SOL coins are actively used in staking.

Staking is locking SOL coins in the Solana network without the possibility of withdrawing or selling them. The more coins are locked and the longer the locking period, the more additional SOL coins you receive in the end. Often SOL stakers gather in pools to lock more coins and therefore, share big profits.

In November 2022, the SOL coin price dropped from $37.81 to today’s level of $14.08,amid the backdrop of the FTX exchange collapse and panic in the market. As the SOL price is so low now, this is a good chance to buy these coins. You can do it on the WhiteBIT platform using your bank card. WhiteBIT allows to stake and trade SOL using different strategies. All these come together with low fees and a high level of safety.