How to mine Solana (SOL)
Solana is a project with its main task to solve the problems of scaling the existing blockchains of large projects, including Bitcoin and Ethereum. As stated by Solana developers, the programmable blockchain of the new generation of the project differs from competitors in its high speed and low commissions.
Thanks to the advantages of the project, the team plans to lure the audience of Ethereum and other massive blockchains which are popular among developers of decentralized applications, which do not demonstrate high throughput rates.
What is SOL crypto?
Solana is a new blockchain protocol. It is based on the interpretation of time ranges as data, followed by their encoding, and the processing of any other information. The highlight of the new protocol lies in the innovative consensus. The latter should provide an indicator of network throughput at the level of 710 thousand transactions per second (TPS). We draw your attention to the fact that MasterCard and Visa payment systems are significantly behind the indicated figure. Their throughput rate does not exceed 65 thousand TPS. Developers plan to achieve high speed of processing operations by means of a new algorithm, called Proof of History (PoH).
What is Proof of History?
Proof of History is a mechanism that helps organize events in a blockchain. Instead of creating a single time for all participants, it allows each node to generate timestamps locally. When a new event occurs, it can be added to this chain from a certain point, which will change all future hashes. Because it takes time to calculate hashes, publishing the correct hashes proves that a certain amount of time has passed since the new event was added.
PoH allows Solana to solve several problems at once:
- Reduce block generation time.
- Optimize the block reproduction process.
- Increase network bandwidth.
PoH is also responsible for storing data in the registry.
The history of the project dates back to 2017 when Anatoly Yakovenko tested the new Proof–of–History algorithm and introduced the White Paper on Ecosystems, pointing to the problems of Bitcoin and Ethereum performance. After the publication of the document, Anatoly together with his colleague from Qualcomm Greg Fitzgerald began working on Loom – a scaling solution for Ethereum. However, Loom quickly changed its name to Solana. Similar to ChainLink, the beginning for Solana was unsuccessful, and the main network was launched in 2020 instead of the expected 2018.
The Solana ecosystem does not imply the ability to mine tokens, since it is not built on PoW consensus. But the system provides the opportunity for staking SOL tokens, when the coins are delegated to the network validators, and the contributor receives rewards.
How to buy a Solana coin?
As of this article, Solana is in the top 5 most capitalized cryptocurrencies.
SOL cryptocurrency is widely represented on exchanges (Binance, OKEx, FTX, VCC Exchange and many others), mainly in trading pairs with other cryptocurrencies such as BTC, USDT, BUSD, ETH, BNB, BCH.
To buy cryptocurrency on the exchange, as a rule, you need to go through verification. This will allow you to fund your account with fiat money to buy Solana with US dollars and so on. Also, on some sites, direct purchase of this asset from a debit / credit card is available. When buying through an exchange trading terminal, you can use two main types of orders including market or limit orders.
Solana can be bought with fiat (mainly USD) on the FTX, FTX US and Binance US exchanges.
You can also buy SOL using crypto-wallets.
If you do not want to trade, but plan to simply replenish your wallet, then the easiest way is to make transactions through exchange services. Choosing Godex exchange you will get the strong conversion reliability without verification required, the best rates fixed and complete anonymity.
There are three scenarios for using SOL:
- Transaction fees;
Solana token forecast for long term
Solana is currently worth $ 183.84 USD with a market cap of $ 56.3 billion, ranking 5th in the list of the most valuable coins.
Solana is positioned as a blockchain for dApps for DeFi, Web3 and blockchain games. Today, the Solana ecosystem includes over 250 projects and their number is constantly growing. Ethereum and Polkadot are considered direct competitors of Solana in the scalable blockchain market for dApps.
Having assumed an increase in interest in innovative Solana technologies, experts predict further growth in demand for cryptocurrency and an increase in its value. Solana is expected to continue its impressive growth in 2022 and in the upcoming years, as other scalable solutions such as the upcoming ETH 2.0 update for Ethereum have yet to receive full functionality.
In 2021 SOL cryptocurrency of the Solana blockchain platform has grown in value by 45 times. As a result, the Solana project entered the top 10 in terms of capitalization on CoinMarketCap.
The price of Solana (SOL) cryptocurrency may rise to $ 5,000 by 2030. This is the conclusion reached by Finder.com online comparison resource, which surveyed 50 fintech specialists. However, significant changes in the SOL price should not be expected before 2025 when the respondents predict growth to $ 1,178. As it was discovered by Finder.com, 51% of respondents believe that the network algorithm built on the basis of the Proof of Stake and Proof of History consensus will give Solana an edge over Ethereum. At the same time, another 23% are not sure, and the remaining 26% definitely believe that the Solana algorithm will not give any advantages over Ethereum. Hot takes around Solana may stem from incidents due to network centralization. However, survey participants agree that Solana may cost more than $ 5,000 by the end of 2030.
Should you invest in SOL?
According to market participants, the launch of the NFT project based on the blockchain of this cryptocurrency, i.e. a collection of 10,000 tokens with three-dimensional images of monkeys became a stimulus for the rapid growth of Solana’s market rate. This collection was in such high demand that all tokens were bought in less than 10 minutes. Some people could not have bought them, so the sellers even had to return the money.
Another possible reason for the sharp rise of Solana lay in its close cooperation with the FTX digital trading platform. The structure of the exchange is one of the main investors in cryptocurrency, and the FTX platform called Serum operates on the Solana blockchain. FTX is currently working on enabling its US customers to trade in cryptocurrency derivatives next year. It is already negotiating with the CFTC, i.e. US financial regulator, which regulates the derivatives market.
In an interview with Bloomberg, Pantera Capital partner Paul Veradittaquitt called Solana as “the main competitor” to Ethereum, Cardano and other smart contract platforms in terms of “developer distribution and momentum.”
Against the background of such news, Solana may continue to grow and a long-term investment in this cryptocurrency seems a reasonable option. The market for it is very bullish. It can be considered not only as an investment option, but also as an innovative technology for developing your own blockchain solutions.
SOL coin price prediction 2022
As for the forecast of the Solana rate, currently, experts are competing in the boldest estimates.
WalletInvestor provides the riskiest calculation that Solana could reach $ 479 in a year.
Solana price prediction 2022 by Price Prediction agency shows its low mark of $ 295.89 and a high point of $ 340.71 at an average rate of $ 305.92 over 2022.
DigitalCoinPrice is confident in the SOL price prediction 2022 of $ 270 by the end of this year and $ 344 in a year.
The gov.capital believes in the SOL rate of $ 454 by October 2022.
The Economy Forecast Agency opens Solana price with $363 considering its maximum price of $ 450 in 2022.
Pursuant to the current Cryptonization forecast, the price of Solana in 2022 will change from $ 198 to $ 302.
Solana token price prediction 2025
According to Solana Price Prediction 2025, SOL will reach the lowest possible level of $ 913.16 with the highest mark of $ 1,059.26 expected.
SOL price prediction 2025 by Cryptonization says that the price of Solana will range from $ 714 to $ 988.
SOL crypto price prediction 2030
There are forecasts that SOL price prediction 2030 can expect the average rate to be $ 5,691.61, and in the case of the best scenario the maximum price of Solana could be up to $ 6,674.01. Of course, there is a chance that the market will fall after a long bullish run. As stated by the Price Prediction agency, Solana price prediction 2030 shows an exceptional potential of the token to reach new heights. Due to their experts and business analysts, Solana may reach the highest mark of $ 7,189.63 by 2030.
Solana may well jerk from the current prices to $300, provided that the positive flow of news continues, Bitcoin keeps growing and the parabolic increase is maintained because, in the event of a serious correction, it will be problematic to jump up again. Not so long ago, the Solana project received an investment of $ 314 million. This also cannot fail to attract the attention of market participants to the project and the purchase of coins.
Disclaimer: Please keep in mind that the content of this article is not financial or investing advice. The information provided is the author’s opinion only and should not be considered as direct recommendations for trading or investment. Any article reader or website visitor should consider multiple viewpoints and become familiar with all local regulations before cryptocurrency investment. We do not make any warranties about reliability and accuracy of this information.