SOL is approaching its highest price in history, investors face the choice between ETH or SOL
From 20 in the past to 200 today, SOL is approaching its price peak step by step. As the focus of popular MEME coins such as BOME, WIF, and SLERF, SOL has investors looking forward to its trend this year. Although the name of ETH killer has been mentioned again, SOL is by no means an ordinary person. Now, the bull market is back, and investors are faced with a choice: should they choose ETH or SOL?
In the investment world, Buffett's value investing theory tells us that when you buy a stock, you buy a company. For investors, the fundamentals of the project are crucial, including operating conditions, financial conditions, market prospects, and management strength.
In the field of cryptocurrency investment, price fluctuations are more severe, and risks and opportunities coexist. Taking SOL as an example, from the perspective of exploring project value, we found the following problems:
Q1. In the SOL ecosystem, it is difficult for ordinary investors to participate in block verification.
SOL proposes an innovative blockchain architecture - PoH (Proof of History). Through PoH, SOL solves the cumbersome problem of on-chain transaction verification, without the need for multiple communications, and each node can be independently verified. In SOL, leaders and validators work together to execute transactions. The leader generates the PoH sequence through the hash function to ensure that the transaction sequence is consistent and verifiable; at the same time, it creates new blocks and processes transactions. The verifier is responsible for verifying the validity, execution results and status changes of transactions.
However, it is difficult for ordinary investors to become leaders or validators to participate in block verification. This is because both leaders and validators are generated by the PoS consensus algorithm, and validators need to pledge a certain amount of SOL. The more SOL they hold, the greater the chance of being selected as a validator. In addition, the ultra-high performance of SOL relies on the high-configuration hardware of the nodes, which also increases the difficulty for ordinary investors to participate.
In SOL, the complete process of a transaction is as follows:
First, the leader receives user transactions and uses PoH to generate irreversible time series to ensure that the transaction sequence is clear.
Secondly, the leader processes transactions, updates system status, and packages changes into blocks, including transactions, execution results, and status changes.
The leader then signs the block state and broadcasts it to validators in the Solana network.After the validator receives the block, it performs secondary verification. Finally, when enough validators reach consensus, the block will be added to the chain.
The bull market is here. If you don’t know how to operate it and are still confused, please like, follow and check it out! This bull market will explode with more 100x coins, and I will announce the next 10x coin password during the Bitcoin halving period in the circle! Guessing is worse than being sure!
