Solana (SOL): what you need to knowSolana (SOL): what you need to know

Solana is a public blockchain network designed for fast and low-cost transactions. The network can process thousands of transactions per second, making it suitable for applications that require high throughput, such as decentralised exchanges (DEX), NFT marketplaces and payment systems. The native coin of the network is SOL. This coin is used to pay transaction fees and to participate in the network's consensus mechanism through staking. Solana launched in 2020 and has since grown into one of the larger blockchain networks by market capitalisation and daily transaction volume.

Whitepaper: https://lcx.com/en/sol-mica-white-paper

Solana combines two consensus mechanisms: Proof of History (PoH) and Proof of Stake (PoS). Proof of History is a technique in which timestamps are cryptographically recorded on the blockchain. This means validators do not need to communicate with each other to establish the order of transactions, saving time and making the network faster. Proof of Stake is the underlying consensus mechanism. Validators must stake SOL to participate in the validation process. The more SOL a validator stakes, the greater the chance of being selected to add the next block. By combining these two mechanisms, the network can theoretically handle up to 65,000 transactions per second. In practice the figure is lower, but the network is considerably faster than many other blockchains.

• Ticker: SOL

• Category: Smart contract platform

• Blockchain: Solana

• Protocol: Proof of History + Proof of Stake

• Year of launch: 2020

The core architecture of Solana consists of eight technical innovations that together enable its high throughput. The best known is Proof of History, but Gulf Stream (a mempool-less transaction forwarding system), Turbine (a block propagation protocol) and Sealevel (parallel smart contract processing) also contribute to the network's performance. Solana uses its own smart contract environment. Smart contracts on Solana are called "programs" and are written in Rust, C or C++. This differs from Ethereum, where Solidity is the standard. Transaction fees on Solana are typically a fraction of a cent, making the network attractive for users who transact frequently.

The Solana ecosystem includes decentralised exchanges, NFT platforms, payment applications and DeFi protocols. Projects such as Raydium (DEX), Magic Eden (NFT marketplace) and Jupiter (aggregator) are built on the Solana network. Solana has also attracted attention from the traditional financial world. Multiple large financial institutions and payment companies have shown interest in or collaborated with the Solana ecosystem.

Solana was founded by Anatoly Yakovenko. He published the Proof of History whitepaper in 2017 and co-founded Solana Labs with Greg Fitzgerald, Eric Williams and others. Yakovenko previously worked as a software engineer at Qualcomm and Dropbox. Solana Labs also established the Solana Foundation, a non-profit organisation that supports the development and governance of the network.

BTC Direct has been the European entry point to crypto since 2013. We make buying Solana straightforward, even if it is your first time:

• Trusted in Europe. BTC Direct is registered with the Dutch Central Bank (DNB) and operates under MiCA, the EU regulation for crypto.

• Familiar payment methods. Pay with iDEAL, Bancontact, Sofort, SEPA bank transfer, credit card, PayPal or Apple Pay. Your SOL is on its way within minutes.

• Your coins, your control. We do not store your SOL. After your purchase, your coins are sent straight to your own wallet address.

• Based in the Netherlands, serving all of Europe. Our experts are based in the Netherlands and answer in your language across the SEPA zone. Need help? We are here.

• Start with a small amount. From just €30. The minimum depends on the coin.

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Note: for more information about this crypto asset, please consult the official project sources at https://solana.com.

Before trading, please read the general risk warning about trading in crypto assets carefully: Cryptocurrencies, including Solana (SOL), are volatile and carry risks. The value of SOL can fluctuate significantly and investments may result in financial losses. Always do your own research and only invest money you are prepared to lose.

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