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A blockchain on steroids: Solana in 5 🖐

A blockchain on steroids: Solana in 5 🖐
By Fernando Gutierrez • Issue #60 • View online

What is Solana (SOL)? ⏱
Launched in 2020, Solana is a public blockchain focused on scalability and high performance for decentralized applications.
Many DeFi, Web3, and blockchain gaming projects are already building on Solana.
Key Solana specifications:
  • 50k transactions/sec (in theory, it can go up to 700k tx/sec)
  • Execution of smart contracts in parallel
  • Blocks every 400 milliseconds (the team believes it can improve that)
  • Negligible fees ($0.00025) that will stay like that no matter how much usage it gets
Solana builds on a series of innovations.
The most important one is Proof of History (PoH), which uses Bitcoin’s hash function to have a decentralized clock on the blockchain that timestamps transactions so they can be ordered easily.
Another one is assigning smart contracts to clusters of nodes so they can run in parallel.
FTX, one of the biggest crypto exchanges, selected Solana for its decentralized exchange, Serum. The reason was explicitly performance.
FTX is focused on traders, and they could only build the order book they wanted if they had Solana’s millisecond times.
Solana has a unique Proof of Stake (POS) setup in which nodes change their role regularly. They need to stake SOL, Solana’s token. It will also be used for governance in the future.
There have been several financing rounds and an ICO. Most of the tokens are already in circulation.
A few links
Last few words
Of course, this is not financial advice yada yada yada.
Scale your thinking so you don’t scale your losses. In any case, whatever you do, it’s on you.
I’m catching up with crypto concepts and projects daily for 50 days straight. Please reply to this email if there is something that you would like me to cover.
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Fernando Gutierrez

I'm catching up with crypto projects and concepts in a few paragraphs for at least 50 days straight.

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