Buy SOL the native token on the Solana blockchain
What is Solana?
It is fair to say that cryptocurrency has taken the world by storm. It is a new way to exchange funds within a virtual space. The public ledger exists within an online network. A number of competing ones have emerged over the years. Solana is a relatively new blockchain platform that was founded as recently as 2017. The project is aimed at being open-sourced and decentralized. The Solana Foundation is based in Geneva, whilst the blockchain itself was built by a lab based in San Francisco. Compared to many of its rivals the company manages to provide faster transactions with lower fees.
SOL is the name of the coin that runs on the network. In 2021 it soared in value by almost 12,000%. SOL also has a market capitalization of more than $66 billion. As a result, it has become the fifth-largest cryptocurrency overall. Traders have begun to notice its significance within the market.
Many other large cryptocurrencies focus on a Proof of Work method. This is when miners compete to solve a puzzle using their computer processing power. It ends up using a large amount of power. However, Solana instead emphasizes Proof of Stake and Proof of History. Essentially these methods mean that there is no mining competition and the coin ends up being more environmentally friendly.
Solana has become prominent due to its expanding ecosystem. However, the main reason is the fact that this coin is so versatile. It can be used in a wide range of different forms of transaction. Performance bottlenecks are minimalized so that bandwidth can be scaled proportionally. It should also be noted that the company focuses on innovation. This could mean that it will end up developing systems that improve blockchain exchanges whilst its rivals continue to utilize outdated ones.
What is SOL?
SOL is the name of the native coin for Solana. There are currently around 489 million SOL tokens that have been released into circulation. It is important that there is only a select amount available. This helps to keep the value of the coin strong. 260 million SOL tokens are already reported to have entered the market.
A lot of traders prefer coins that can be traded in fractional amounts. This option is particularly popular with those who wish to invest a relatively small amount of money in cryptocurrency. The good news is that SOL tokens can be distributed into fractions. These are known in the trading industry as lamports. One lamport is the equivalent of 0.000000001 SOL. They are named after Leslie Lamport, a computer scientist who coincidentally happens to be the biggest influence on Solana.
SOL coins exist within a blockchain that contains attributes focused on scalability, security and decentralization. The upper limit for SOL transactions is theoretically 710,000 a second. Whilst this coin has not yet reached the same amount of mainstream recognition as Bitcoin and Ethereum that may change in the near future. It continues to rise in popularity as more traders recognize its potential value.
How To Buy SOL
People unfamiliar with blockchain currencies may be put off trading by not knowing how it works. Luckily, with popular coins such as SOL it is relatively easy. There is a wide range of reputable cryptocurrency exchange markets to choose from. We have listed some of the most popular crypto exchanges for SOL here.
It is important to understand the fees, security policies and ease of use for the exchange market. Charges for withdrawal can significantly impact how much can be made by trading with Solana. A lot of people prefer to use cryptocurrency apps. This is because it provides portability and immediate access to purchasing or selling SOL.
Recently there have been a number of high-profile hacks on cryptocurrency exchanges. It is therefore essential that people shop around for platforms that offer the best possible protection. That way they can ensure that their SOL tokens remain as safe as possible.
The value of these kinds of coins can fluctuate greatly. Savvy traders will choose to buy SOL when it lowers in value and then sell it once the price soars. Alternatively, they could hold onto the coins on a long-term basis. This option is favored by those who believe that crypto will become a more mainstream method of trade in the near future.
Solana Environmental Impact
There has been much debate over the viability of blockchain tech. One of the arguments against it is the fact that these currencies require a large amount of power to sustain. However, not all networks are as wasteful as others. Solana for example manages to be impressively energy efficient. In fact, a single transaction takes up less energy than it does to perform two Google searches. Solana has also stated that a transaction requires 24 times less power than it takes to charge a phone.
In early 2021 the company contracted an energy and climate advisor in order to determine the environmental impact of this particular cryptocurrency. Many rival coins require mining which uses up an unsustainable amount of energy. Instead, Solana transactions can include buying NFTs and making trades.
Solana is also a Proof of Stake network, which means that its security does not depend on how much power is used. Parallel processing and Proof of History help to increase efficiency further. The independent report on this network found that single transactions take up 0.00051 kWh (or 1836 Joules.) As a whole Solana used around 11,051,066 kWh annually. It is the same amount of electricity usage as 1038 average American households. This might sound like a lot. However, it managed to power an impressive 20,000,000,000 transactions.
If that was not enough Solana has vowed to go even further when it comes to lessening their environmental impact. A program released in late 2021 is aimed at making the network carbon neutral. The company has pledged that it will remain transparent by releasing periodic reports on its energy usage.