Launched to almost no fanfare in March of 2020, the cryptocurrency Solana has since jetted off and has taken the crypto world by storm. After skyrocketing to more than $208 in January 2021 from a mere $1.50, it has since become one of the largest cryptocurrencies in the planet today.
And did you know? You can trade Solana on the eToro online investment platform. If you want to learn more about this cryptocurrency and how to invest on this coin via this brokerage firm, keep reading the article.
In the event you're thinking of trading this crypto, clicking on the button below would give you a quick start. This will redirect you to eToro's Solana trading page so that you can see how it looks like and if you want to proceed, just open an account!
78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
What is Solana?
Solana is an open-source project maintained by Solana Foundation which is based in Geneva, Switzerland and developed by Solana Labs in San Francisco. A more environmentally friendly than other PoW (proof of work) blockchains like Bitcoin, Solana is a PoS (proof of stake) type of blockchain that is currently giving Ethereum tough competition for the title of the world's largest decentralized apps platform, thanks to its faster operation process—making Solana as the fastest blockchain right now—and lower transaction fees.
The native currency of Solana is also called "Solana" which has a ticker symbol of SOL.
The SOL platform was founded in 2017 by Anatoly Yakovenko. Armed with a vast experience in compression algorithms from his work at Qualcomm and as software engineer in Dropbox, Yakovenko, along with future Solana CTO Greg Fitzgerald and Eric Williams, created and developed a process that aims to solve usual throughput issues that existed in the Ethereum and Bitcoin blockchains.
Solana was launched in March 2020 following a $1.76 million fundraising from a public token auction.
Possibly the biggest appeal of Solana is its capability to support 50,000 TPS (transactions per second) which is powered by a network many believes can even peak at 65,000 TPS. Comparing this to other cryptocurrencies, Solana's transaction speed is 10,000 times speedier than Bitcoin, 4,000 faster than Ethereum, and 30 times quicker than Ripple.
Solana's technology is patterned to follow the Moore's Law—an assertion by Gordon Moore in 1965, to which he pointed out the advances in microchip technology will make it possible for the speed and power of computers to double every couple of years. This same concept is applied by the developers in making sure the hardware and bandwidth of Solana will double its capacity every two years. To put it simply, as computers becomes speedier, so will Solana.
Solana's native currency the SOL coin is used to provide staked users with an opportunity to become validator leaders. The SOL coin is also used for creating staking rewards, payment of transaction fees on the network and for PoS governance and voting privileges on the network.
There were around 500 million SOL tokens minted originally. From that number, 12.5% were kept by the founders, 35.4% were distributed to locked investors, 1.6% were sold to investors at auction, 38% were retained as community tokens and the remaining 12.5% are being held by the Solana Foundation, which is comprised of an independent board based in Geneva, Switzerland. The funds kept by the foundation is the one used for Solana's development, programs, grants and marketing.
Main Innovations of the Solana Network
Proof of History (PoH): the PoH algorithm produces a more efficient and faster throughput rate in the network. By recording historical events and transactions, it gives the system the capability to track transactions and the ordering of events faster and more accurately.
Turbine Protocol: this make it easier for the network to transmit date to various blockchain nodes.
Gulf Stream Protocol: this protocol allows validators to process transactions ahead of time, therefore lessening confirmation time and reducing occurrence of unconfirmed transaction pools. This protocol is what makes it possible for Solana to achieve 50,000 TPS.
Cloudbreak: this is a form of data structure that help the network achieve high scalability by optimizing concurrent writes and reads throughout the network.
Archivers: used as data storage, Archivers nodes are comprised of Solana data that are offloaded from validators.
How to Buy Solana?
The easiest way to buy and invest on SOL is through a broker or a trading platform. Especially useful for those beginning to invest on cryptocurrencies are trading platform apps like eToro.
How to Trade Solana on eToro?
To invest on Solana via eToro, you need to open an account first and make your first deposit. You can then follow the steps below:
On your eToro dashboard, click "Discover".
Scroll down to look for "SOL".
Click "Buy" and set the amount you want to invest.
"Click "Open Trade".
eToro Wallet for Storing Solana
eToro’s multi-crypto digital wallet makes it easy to store over 120 different cryptocurrencies. It is secure, accessible and be installed on any smartphone or tablet powered by Android or iOS. With this wallet, store, receive and transfer all your cryptocurrencies with ease.
Is SOL a Sound Investment?
Like all cryptocurrencies, SOL is not immune to huge price swings. Although its value has soared in just over a year, there’s a possibility that it will experience a significant drop. It is also conceivable that it will maintain its momentum and continue its meteoric rise.
As the SOL continues to attract the attention of crypto investors, enthusiasts and developers alike plus maintaining its effort on coming up with innovative project building like NFT platforms and cryptocurrency exchange, the SOL may become a more attractive token than most digital currencies that are not closely related to application networks and development.
Bottom line? Solana has shown that it is doable to solve traditional issues that has hounded the blockchain technology by creating a more efficient structure for verifying transactions in a faster and accurate consensus algorithm. The Solana platform is expected to remain as the strongest competitor of Ethereum and Bitcoin. With the way the network tapped into the vast advancement of the crypto technology in the last decade, expect the platform to further grow in the future by implementing revolutionary blockchain technology.
Interested about trading Solana?
Sign up to see a live demo of Solana's trading platform by clicking on the button below. This will take you to Solana's online trading page where you'll be able to see what it's like and see if eToro is right for you.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.