Education • 3 min read
By Aron Abraham
If you’re a crypto fan, you’ve likely noticed a new rising star on the horizon: Solana (SOL) has rocked the market recently, skyrocketing to claim a place among the very top cryptocurrencies. In our Spotlight series, we highlight altcoins that challenge current limits and answer all your questions.
Solana is not shy about the fact that scalability is one of their top priorities, as stated on their official website:
“Solana is a decentralized blockchain built to enable scalable, user-friendly apps for the world.”
As you may know, it is possible to run apps on some blockchains - these are called decentralised apps (DApps). How? Let’s imagine a blockchain was the operating system for your computer or smartphone (Windows, MacOS, Android, iOS, etc.), and DApps are running on it, just like ordinary apps on your devices. The Solana blockchain is one of those blockchains that supports apps, but with next-level speed and scalability. Solana achieves this advantage over its competitors with its innovative Proof of Stake mechanism, sharding and ready-to-go building blocks for DApps.
Solana’s outstanding speed allows apps used on the blockchain to run faster than other apps on different blockchains. Throughput is usually measured in transactions per second (TPS): the higher this number, the faster the blockchain.
If more and more people were to start using these apps, they would be bound to become slow and overpopulated, because the blockchain would not be able to keep up. You know how it is: when the memory’s getting full on your phone, your phone and its apps slow down. Imagine Solana as a phone with a memory that grows every time it’s about to get full and cause the phone to slow down. This is where Solana’s great scalability - the ability to handle a growing amount of transactions by adding resources to the system - comes into effect.
If you want to be the champion, you have to beat the champion. In this context, Ethereum is a veteran heavy-weight master. Does Solana stand a chance against the best in show? Let’s take a look.
Solana’s higher transactions per second indicates that its claims about the speed are backed by numbers. Still it’s worth bearing in mind that while Ethereum’s current version lags behind in terms of speed, the upcoming Ethereum 2.0 update could well change the tides in favour of the second biggest crypto.
“Research is not for me, it’s boring” - if this is you, the next 15 seconds of reading might change your mind. You don’t need to dive into academic articles and whitepapers to see if you should invest, although, of course, we won’t stop you. Researching before investing, however, is vital: here are 4 simple steps to follow:
At Bitpanda, you can buy Solana (SOL) with literally a few clicks on your phone or computer. Our easy-to-use interface makes investing in crypto and other digital assets a walk in the park. All you need to do is to register and verify on Bitpanda and you can start right away.
€100k worth of daily prizes are waiting for you, from Dec. 1Read more
Bitpanda GmbH ve grup şirketleri (Bitpanda) Türk Parasının Kıymetini’nin Korunması Hakkında 32 sayılı Karar’ın 2/b maddesine göre Türkiye’de yerleşik sayılan hiçbir kişiye yönelik olarak 6362 sayılı Sermaye Piyasası Kanunu başta olmak üzere Türkiye Cumhuriyeti Devleti mevzuatı hükümleri gereği Türkiye’de faaliyet izni gerektiren hiçbir sermaye piyasası faaliyetine dair hizmet sunmamaktadır. Şayet Bitpanda’nın yabancı sermaye piyasalarında vermiş olduğu hizmetlerden Türkiye’de yerleşik kişilerin faydalandığı tespit edilecek olursa tüm zararları kullanıcıya ait olmak üzere bu hizmetler ivedilikle sona erdirilecektir.
As the name would suggest, some cookies on our website are essential. They are necessary to remember your settings when using Bitpanda, (such as privacy or language settings), to protect the platform from attacks, or simply to stay logged in after you originally log in. You have the option to refuse, block or delete them, but this will significantly affect your experience using the website and not all our services will be available to you.
We use such cookies and similar technologies to collect information as users browse our website to help us better understand how it is used and then improve our services accordingly. It also helps us measure the overall performance of our website. We receive the date that this generates on an aggregated and anonymous basis. Blocking these cookies and tools does not affect the way our services work, but it does make it much harder for us to improve your experience.
These cookies are used to provide you with adverts relevant to Bitpanda. The tools for this are usually provided by third parties. With the help of these cookies and such third parties, we can ensure for example, that you don’t see the same ad more than once and that the advertisements are tailored to your interests. We can also use these technologies to measure the success of our marketing campaigns. Blocking these cookies and similar technologies does not generally affect the way our services work. Please note, however, that while you’ll still see advertisements about Bitpanda on websites, the adverts will no longer be personalised for you.