Why Solana?
Solana is both a cryptocurrency and a high-performance blockchain with an efficient consensus mechanism. SOL acts as the native token of Solana, facilitating various functions within the network, including transaction processing, smart contract execution, and platform governance.
The Solana blockchain offers scalability and transaction speeds comparable to other prominent blockchain networks. One of its key features is the utilization of a unique consensus algorithm called Proof of History (PoH). This algorithm involves the ordering of transactions before they are added to a block. The combination of PoH and Proof-of-Stake (PoS) significantly enhances the overall throughput and scalability of the Solana network, enabling fast and low-cost transactions.
Solana aims to provide a secure infrastructure for building decentralized applications (DApps) and supporting diverse blockchain projects, such as DeFi and NFT systems. This repertoire positions Solana as a direct competitor to Ethereum, which also operates as a decentralized computing platform. Solana differentiates itself by offering faster transaction processing and lower fees.