Blockchain technology has set the stage for new opportunities to benefit businesses of all shapes and sizes through greater transparency, enhanced security, and easier traceability. The technology has broken shackles and forayed mainstream business operations across industries to prove its usability. It is changing the world as we know it.
Decentralized finance [DeFi] is yet another booming part of the neck-breakingly volatile crypto economy. Even in its nascent stage, DeFi has been able to deliver significant benefits. Despite skepticism over DeFi, this space has attracted countless tech-savvy tinkerers, early adopters, and outside-the-box thinkers to contribute to an alternative and largely independent financial system. It aims to transform the way the world borrows, lends, saves without centralized pillars.
Since most of the action takes place in Ethereum, the recent boom in DeFi and NFT has turned the spotlight on the network. Naturally, the criticism over harrowing network congestion and skyrocketing gas fees have piled up. Solana aims to surpass Ethereum by solving the bottleneck issue and becoming the go-to blockchain for decentralized applications.
Scalability is undoubtedly one of the biggest challenges faced by any growing blockchain network. These limitations are present with respect to transaction speed and confirmation times. Solana aims not only to tackle these limitations but also aspires to solve the blockchain trilemma by creating an efficient and scalable network without compromising on its security or decentralization.
This fourth-generation blockchain was founded by Anatoly Yakovenko from Solana Labs in 2017 during the ICO boom. The team behind the ambitious project is currently backed by experienced engineers from top global organizations including Apple, Qualcomm, Intel, Google, Microsoft, Twitter, Dropbox, etc.
Unlike other blockchains such as Bitcoin and Ethereum, Solana implements eight core innovations that allow high throughput and greater network efficiency.
- Solana’s Proof of History [PoH] consensus algorithm enables the creation of higher efficiency and throughput rate within the network. The historical records of events or transactions let the system seamlessly keep track of transactions and the ordering of events.
- Tower BFT is an optimized version of a PBFT-like consensus algorithm that leverages the synchronized clock to reach consensus in the Solana blockchain.
- Solana’s Turbine protocol is a block propagation tool that allows easy transmission of data to the blockchain nodes. It does so by breaking the data into tiny packets and enabling the blockchain to control bandwidth while simultaneously increasing its overall capacity to conduct efficient transactions.
- The Gulf Stream acts as Solana’s Mempool-less transaction forwarding protocol that plays a crucial role in the network by helping the network validators execute transactions ahead of time.
- Sealevel is a hyper-parallelized transaction processing engine in the Solana network that ramps up horizontally across GPUs and SSD. It essentially enables hundreds and thousands of smart contracts to run in parallel at the same time without sacrificing network performance.
- Pipelining process can be defined as a stream of input data associated with various hardware based on its specification that allows transaction information to be swiftly validated and reproduced across all the nodes in the Solana network.
- Cloudbreak is a data structure that helps the Solana blockchain scale.
- Archivers play a crucial role in terms of distributed ledger storage. Basically, the data stored on the Solana blockchain offloads from validators to a network of nodes which are known as Archivers.
What makes Solana the most performant blockchain in the world?
Solana has paved the way for many groundbreaking specifications with its unique architecture. It has emerged as one of the most innovative layer one solutions in the thriving world of decentralized finance. The blockchain’s high throughput infrastructure greatly reduces the scalability impediments that Ethereum currently faces.
Solana supports 50,000 transactions per second [tps]. To put this into perspective, the high-performance network operates almost 1,000x faster transactions than Bitcoin [BTC] and over 3,000x faster than Ethereum [ETH] networks.
The platform’s impressive and rapid growth over the past couple of years opened the way for all kinds of projects and applications. Several prominent projects such as Chainlink, USDC, Serum, Terra have teamed up with Solana. Today, Phemex is all set to bring Solana to its users.
Phemex: Empowering the crypto community
Phemex is a Singapore-based crypto exchange founded in 2019 that gives access to a trustworthy and secure blockchain-powered financial system. With the primary goal of becoming the most trusted digital asset exchange in the world, Phemex believes in empowering individuals all around the world to access instruments to manage risk efficiently and trade seamlessly.
Behind the scenes are Wall Street veterans led by Jack Tao who is helping Phemex build far more superior features than any existing exchange. Its core trading engine is among the fastest, most secure, and most competitive across all exchanges. Phemex prioritizes customers first and takes a deliberate approach to add support for new assets on the platform. Phemex has listed Solana [SOL] on 20th August with the trading pair SOL/USDT.