Solana Coin is the native token of the Solana single-chain, delegated Proof-of-Stake protocol, established with the aim of providing scalability without compromising decentralization or security. It is reported that Solana was founded in late 2017 by former engineers from Qualcomm, Intel, and Dropbox.
At the heart of Solana’s scaling solution is Proof-of-History (PoH), a decentralized clock designed to provide a solution to the time problem in distributed networks where a single and reliable source of time does not exist.
The Solana platform aims to democratize the world’s financial systems by supporting blockchain applications with high growth and high frequency. According to reports, Solana offers its users features such as supporting more than 50,000 transactions per second, block times of 400 milliseconds, and transaction costs of approximately $10 per million transactions on the network.
SOL tokens can be used for payment in staking transactions that allow users to have a say on the platform while earning staking rewards, as well as in simple token operations and smart contract executions on the network. Additionally, it is indicated that SOL tokens may be used as governance tokens in the future.
Solana uses the delegated Proof-of-Stake consensus algorithm, which incentivizes token holders to validate transactions. As part of the security design, it is reported that all fees will be paid and burned in SOL, which will reduce the total supply, thereby encouraging more token holders to stake, increasing network security.
Solana defines itself as a fast, secure, and censorship-resistant blockchain, providing the necessary open infrastructure for global adoption. Despite the recent performance not meeting expectations, SOL coin investors remain hopeful about the medium-term prospects of the Solana coin, given the high promises of the platform. According to CoinMarketCap data, at the time of writing, Solana (SOL) is trading at $2.13 and is ranked 106th by market value, with a market capitalization of $96,755,275 USD.