In this episode of the BeInCrypto video news show, host Jessica Walker will address Solana. After describing what it is, we will discuss its reputation as an “Ethereum killer,” look at its team, and analyze its recent price movements.
What is Solana?
What exactly is Solana and how is it different from different blockchains? Solana is an open source project that takes advantage of blockchain technology’s permissionless nature to provide decentralized finance solutions. While the project began in 2017, the Geneva-based Solana Foundation officially launched Solana in March 2020.
The Solana protocol is designed to facilitate the creation of decentralized apps. The protocol improves scalability by combining the underlying proof-of-stake (PoS) with its own proof-of-history (PoH) consensus method. With PoH, each node in the network gets a synchronized clock, so nodes are actually validating time, instead of data. The innovative hybrid consensus model has a broad appeal, so the Foundation is prioritizing making it more accessible.
Although described by some as an “Ethereum (ETH) killer,” Solana’s design and general purpose doesn’t put it on a collision path with Ethereum. In fact, the Solana team has already introduced what it calls the “Wormhole.” This is a bridge platform that allows Ethereum’s ERC-20 assets to be moved between the two platforms.
So even though there is competition when it comes to DeFi developers and projects, the two seem destined to co-exist in a mutually beneficial way.
The Solana team is one of its main assets. Its founder and CEO is Anatoly Yakovenko. His professional career started at Qualcomm, where he quickly moved up the ranks and became senior staff engineer manager in 2015. Then in 2017, Yakovenko started working on a project which would later materialize as Solana.
Yakovenko teamed up with his Qualcomm colleague Greg Fitzgerald, and they founded a project called Solana Labs. This brings us to 2021 and the current version of the Solana project.
Although Yakovenko is the leading figure, self-made crypto billionaire Sam Bankman-Fried has been stealing some of the spotlight. Well-known for his arbitrage methods with Alameda Research, Bankman-Fried is behind a prominent project on Solana, Serum, a decentralized exchange. He has been hyping the Solana project quite a lot recently; particularly its claim to be able to support 50,000 transactions per second.
Token and technical analysis
Just as we mentioned in our video for May’s top altcoins, Solana has seen incredible growth since the start of the year.
There are, however, some signs of deceleration. But as long as the closest support levels manage to hold, then the uptrend is likely to continue. Should more projects migrate to their blockchain in the coming months, then the first target could be $60 and then $68.