Solana - The next big blockchain

Solana (SOL)

What is Solana?

Solana is a high-speed blockchain that is the base layer for a variety of decentralized applications (dApps). Solana, as a blockchain, competes with other well adopted blockchains including Ethereum and Algorand. Solana provides a unique ecosystem for crypto projects to build on including DeFi projects, NFT’s, and Play-to-Earn Gaming. Think of Solana almost like a Visa or Mastercard as the underlying payment rails and settlement layer for crypto applications.

Why does Solana have value?

Solana’s major value is that it provides secure, fast, and low-cost transactions for the applications that are built on top of its ecosystem. Both users of crypto and builders of crypto applications like Solana because of its high transaction speeds and low transaction costs.

What are the benefits of Solana?

·       50,000 transactions per second

·       Low transaction fees (typically less than .01 per transaction)

·       Strong developer growth (meaning more dApps being built everyday within the ecosystem)

·       High liquidity

What are the disadvantages of Solana?

·       The network has gone offline a few times in the past six months

·       Some argue it is too centralized thus it could be manipulated

·       Much of the coin supply is held by early backers and VC firms

What are SOL’s tokenomics?

 Initial supply is 500M SOL. The token is inflationary with an 8% annual inflation. The inflation rate will decrease by 15% annually (dis-inflation rate) until it ultimately reaches a final inflation rate of 1.5%. Initially, 29.15% of the tokens were sold in funding rounds; 10.46% were allocated to the Solana Foundation and 12.79% were distributed among the development team.

Who founded Solana?

Anatoly Yakovenko, Raj Gokal, Greg Fitzgerald, Stephen Akridge, and Alan Yu

Who are Solana’s investors?

Kosmos Capital, Passport Capital, Foundation Capital, Slow Ventures, Multicoin Capital, BlockTower Ventures, Rockaway Capital, Andreessen Horowitz, Polychain Capital, CoinFund, and others

Concise Crypto Grade:

A- :Solana could be the closest competitor to Ethereum. It’s blockchain is fast, inexpensive, and has a huge ecosystem. But the blockchain has gone down for multiple hours too many times. Plus, they are a centralized. With all that said, they have a thriving ecosystem, a very strong founder, a huge treasury, and are backed by some of the biggest names in crypto. Solana will continue to thrive and will be around for a long, long time.

Where can I buy SOL?

Coinbase, FTX, Binance, Kraken

What ecosystem does Solana run on?

Solana