Surely you have heard of cryptocurrencies and Blockchain projects that are emerging and whose future may be bright. Solana is one of them. In this article, we analyze the Solana cryptocurrency, its main characteristics, its strengths and limitations as well as its prospects, its potential. Also discover how to invest in Solana as well as our focus on Solana staking.
Solana: how does it work?
To understand how Solana Network works, we must first look at the parts that make up this protocol. Among these parts, we can highlight the following.
The Solana Proof of History (PoH) Consensus Protocol
Proof of History (PoH): The Solana consensus protocol Proof of History (PoH) is the cornerstone of Solana, since this protocol is the one that offers the possibility of processing transactions at high speed and in complete safety. Proof of History, is a Proof of Stake (PoS) type consensus protocol whose operation depends on the use of time and a type of function known as Verifiable Delay Function.
Solana’s Verifiable Delay Function validation process
In order for a PoH validator to work on the network it has to do some staking which gives it voting power within the network, the validation process uses the Verifiable Delay Function as an additional means of security to the simple lottery that the commonly seen in most PoS algorithms.
In this sense, Solana’s Verifiable Delay Function PoH works in two ways:
it allows you to order network transactions chronologically so that they are tracked in exactly that order;
it creates an intrinsically time-bound cryptographic system in which transactions are made, taken, and verified by the network. This is possible because Verifiable Delay Functions use the temporary transmit (Tx) parameters to perform a unique cryptographic function to ensure their validity.
The advantages of Solana :
The main problem with the current Blockchain is that it supports very few transactions per second (tps).For example, Bitcoin supports between 5 and 8 transactions per second and Ethereum between 12 and 20. As soon as these numbers are exceeded, the network has no choice but to become congested. What does that mean ? That transaction fees increase so that these transactions are validated before the rest. According to its developers, Solana can exceed the figure of 50,000 transactions per second, that is, this would make it the fastest network in existence.