What is Solana (SOL)?

Solana is an open-source project that utilizes blockchain technology’s decentralized nature to provide DeFi solutions that majorly focus on speed and low cost. Though the initial work on the project started in 2017, the crypto community finally got a glimpse of Solana when the Solana Foundation officially launched it in March 2020.

The Solana protocol is designed in such a way that it enables the creation of a decentralized app also known as DApp via deploying smart contracts onto its blockchain. Solana aims to improve scalability by presenting a proof-of-history (PoH) consensus combined with the underlying proof-of-stake (PoS) consensus of the blockchain. As of today (2 March 2022), the SOL crypto price is $104.69 with an ATH of $260.06 achieved on 6 November 2021.

Because of its speed and low-cost model, it is possible to verify payments sent on the Solana chain within seconds and costs an average of $0.00025. This also functions as the USP for Solana, as most of the issues surrounding crypto involve transaction fees and speed. Solana’s innovative hybrid consensus model makes it possible for both small-time traders and institutional traders to enjoy the platform equally. A significant focus for the Solana Foundation is to make decentralized finance accessible on a larger scale.