If you invest in cryptocurrency or like to keep yourself updated about it, you would have heard of Solana. In 2021, it surpassed other blockchains like Ripple and Cardano. Market data shows that Solana has become the fourth largest digital currency by market capitalization.
According to some predictions, it could reach almost 1,409.05 AU$ by 2027. Therefore, it is a great time to invest in this crypto and reap profits in the long run.
However, before deciding to buy Solana on Swyftx or any other cryptocurrency exchange platform, here are some aspects to know.
What is Solana?
Solana is a blockchain platform launched in 2020 by Anatoly Yakovenko. It was created to host decentralized applications and smart contracts. One of the primary reasons behind the popularity of Solana is its outstanding transactional speed and lower transaction fees.
For example, it can carry out almost 50,000 transactions in a second. The platform’s currency is also called Solana or SOL. The Solana Foundation has predicted the release of about 489 million tokens in the future. Out of these, 260 already enjoy a presence in the market.
How does it work?
Every blockchain has its operating mechanism. Solana works using a combination of Proof of History (PoH) and Proof of Stake (PoS). PoH makes the validation of transactions easier without any communication with nodes (a node is a part of digital currency that ensures the proper functioning of coins).
All buying, selling and dealing are time-stamped and verified in a short period. SOL created PoS to replace Proof of Work or PoW. It allows validators or blockchain verifiers to verify all dealings according to the number of coins held by each user. PoS is also highly energy efficient as it does not require significant amounts of computational resources.
Reasons to invest in Solana
There are several reasons why investing in Solana is a good idea.
You can buy NFT easily
An NFT is also called a non-fungible token, with a unique identification code and metadata that distinguishes it from the others. The main benefit is its ability to prove your ownership over something. When you purchase an item with NFTs, the possibilities of fraud are reduced drastically.
Solana makes buying and selling these non-fungible tokens extremely easy. There are no congestion issues or high transaction fees, as you would find in other blockchains. Data shows that it has the fourth-largest NFT sales in the world.
It has a user-friendly model
Solana does not differentiate when it comes to transactions. In most other platforms, miners usually prefer higher-value dealings regarding size or value.
However, in SOL, there is a first-in, first-out system, where all transactions are carried out according to proper order. The eventual result is an unbelievable increase in the speed of the overall process.
High growth in the future
Almost all the predictions point to the incredible growth of Solana in the coming years. It is believed that the crypto will have a value of about 1211.78 AU$ by 2022 and nearly 1,409.05 AU$ by 2027, as mentioned earlier. These estimations are credible because Solana went from being the 42nd crypto to the 5th largest quickly.
Most of the available data and statistics reveal that you will immensely benefit if you decide to buy Solana on Swyftx or any other trading platform. It holds impressive potential for the future. But before you do so, it is vital to know everything related to it.