1. What is Solana (SOL)?
1.1 Description of Solana
Founded by former Qualcomm, Intel, and Dropbox engineers in late-2017, Solana is a single-chain, delegated-Proof-of-Stake protocol whose focus is on delivering scalability without sacrificing decentralization or security.
Core to Solana’s scaling solution is a decentralized clock titled Proof-of-History (PoH), built to solve the problem of time in distributed networks in where there is not a single, trusted, source of time. By using Verifiable Delay Functions, PoH allows each node to locally generate timestamps with SHA256 computations. This eliminates the need for the broadcasts of timestamps accross the network, improving overall network efficiency.
Solana’s mission is to support all high-growth and high-frequency blockchain applications, and to democratize the world’s financial systems.
At its core, Solana offers:
Scalability: Solana is capable of supporting over 50,000 transactions per second, while maintaining block times of 400 milliseconds.
Decentralization: with the use of Turbine block propagation protocol, the platform can support thousands of nodes while remaining performant and scalable.
Inexpensive execution: transactions costs on the network are estimated to cost 10 USD for 1 million transactions.