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Who and what is behind the rise of the proof-of-stake blockchain

A newcomer is shaking up the market: after the rapid rise of the proof-of-stake network Solana in recent weeks, the blockchain project not only conquered the top 10 of the crypto charts, but has now even overtaken Polkadot. In terms of market capitalization, the SOL token is well ahead of DOT at almost € 23 billion, which is around € 21.7 billion.

Solana was able to work out his place as an Ethereum challenger very quickly. The token now has a price of just under 80 euros – at the beginning of the year it was 1.3 euros, a month ago it was 27 euros. Unlike most other crypto assets, SOL managed to hit new records in August, while with a few exceptions most coins and tokens saw their all-time highs in May, before the big crash.

Solana: Ethereum challenger rushes from one high to the next

Solana should not only inspire investors who are looking for steep price charts and pretty logos, but also be popular with developers due to the fundamental data. As a smart contract platform, similar to Ethereum, Cardano, Binance Smart Chain or Polkadot, the aim is to lure developers of decentralized applications with the lowest possible transaction fees and as many transactions per second as possible. And here Solana is actually remarkable because in terms of prices and speed it outshines most of the other (reasonably) comparable blockchains.

The fact that the network is not yet really big can also be seen from the fact that the number of validators (they carry the blockchain network on distributed shoulders) is not yet large. Solana currently has 912 such validators in its mainnet. For comparison: Ethereum 2.0, which has not really started with Proof of Stake, already reached 200,000 validators in June.

Nevertheless, Solana is communicated as a network, which is very attractive for developers who are in the DeFi, NFTs or Web3 areas. There are currently around 400 projects. Some examples are the decentralized Exchange Serum (operated by FTX and Alameda), the lending platform Anchor or the Chainlink competitor Pyth Network. There has also recently been an official cooperation with Chainlink itself.

With Bank Friedman behind him

What Solana around founder Anatoly Yakovenko benefits greatly from is the integration with FTX founder Sam Bankman-Fried. Its Alameda Research is an investor in Solana Labs and, as mentioned, has ensured that Serum runs on the Solana blockchain and not on the competition. FTX, the shares tokenized with the Swiss Digital Assets AG, has also chosen Solana for this.

Sam Bankman-Fried is a big number in the crypto industry. He is considered to be an influential billionaire who supported Joe Biden in the 2020 election campaign with a million donation and is planning a major attack on Binance and Co. with FTX (formerly Blockfolio). With a whopping $ 900 million for FTX, Bankman-Fried secured the largest round of funding for a crypto company this year, giving his very young company an unbelievable valuation of $ 18 billion. Young crypto exchange rises to valuation of $ 18 billion

Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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