Solana (SOL)

Solana in Global Markets:

Solana digital currency, known by the Latin name Solana and with the exclusive symbol SOL, is a digital currency. It ranks 4th in the market. Each unit of Solana is priced in dollars at any moment, considering Tether and Toman exchange rates.

What is Solana and How Does It Work?

Solana is a decentralized blockchain with high performance speed and lower transaction fees, which has gained particular popularity among investors today. Overall, it is a scalable currency.

Solana was created in the United States; however, the Solana Foundation is based in Geneva, Switzerland.

From the beginning, SOL has been considered one of the top digital currencies with significant value in the digital realm.

Solana operates in a multi-layered manner, where each layer is responsible for part of the network's functionality. This means that the ecosystem functions as a hybrid network.

In Solana, each block is called a slot.

A special validation called a Leader is responsible for creating each slot. Each validator in the network is part of a cluster, which is responsible for adding blocks to the blockchain ledger.

All transactions and network events are hashed using SHA-256, producing a unique, inaccessible output. The hash of each output is used as the input for the next hash, creating a secure, unbreakable chain of hashed transactions. This allows a validator to add a transaction to a block without needing a timestamp, as the hashing process has a set timing. Therefore, validators can easily determine how much time has passed.

In simpler terms, each node in Solana has its own timestamp, meaning that, unlike Bitcoin, all nodes do not need to gather for a transaction.

In Solana, the Leader is responsible for creating blocks, and Leaders operate within a set timeframe. This setup is such that nodes know who the next Leader will be.

Advantages of Solana:

- High speed

- High scalability

- Low transaction fees

- Staking and earning rewards

- High security

- Support for platforms offering NFT tokens

Disadvantages of Solana:

Overall, the disadvantages of Solana are much fewer than its advantages. However, one notable drawback is that setting up suitable and satisfactory hardware on this network requires high costs.