What is Solana? Since the explosion of cryptocurrencies, both investors and cryptocurrency enthusiasts have carved a niche market of digital currencies that are used as digital money and causing waves across the digital economy.
In fact, today there are over 19,000 individual cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, Binance, and Solana in the market that are traded on dozens of blockchain platforms.
Blockchains are online databases distributed across computers that run using blockchain software. They minimize the need to trust centralized authorities such as banks, auditors, accountants, regulators, and even governments. Instead, they rely on a global network of peers to enforce rules of trading and exchanges.
Interestingly enough, no single entity owns or controls the databases. Anyone can access the database, offer proof of ownership, and transfer cryptocurrencies through the use of crypto wallets.
What is Solana?
Similar to Ethereum, Solana is both a cryptocurrency and a flexible platform for running decentralized apps (dapps). Launched in March 2020 Solana uses SOL tokens as its native cryptocurrency and can be used to pay its transaction fees, conduct crypto trading, and more.
It works to improve scalability with the help of the proof-of-history (PoH) and Proof-of-Stake (PoS) consensus algorithm. It claims to be able to support 50,000 transactions per second without sacrificing decentralization. Thanks to its speedy processing it cuts down congestion allowing for processing fees to remain low.
Solana Price
- READ MORE: What is Cryptocurrency and How Does it Work?
Can I mine Solana
Solana cannot be mined as it does not use a mining consensus mechanism. Instead, Solana uses staking where cryptocurrencies verify their transactions and allow participants to earn rewards on their holdings.
What this means is that through the staking cryptocurrencies process users will commit their crypto assets to support a blockchain network and confirm transactions acting like a validator. And when new cryptocurrency coins are minted, they are distributed as rewards for the staking service.
The amount of Sol tokens you get as a reward will depend on the number of transactions that you process and the amount of SOL tokens that you have staked.
How to mine Solana on PC
You can stake Solana with a PC however you will need a good and uninterruptable Internet service with at least 300Mbit/s you should also have a PC with the following minimum specifications:
| Steps/Requirements | Description |
|---|---|
| Internet Connection | Good and uninterruptable service with at least 300Mbit/s. |
| CPU | x86-64 compatible; Intel Ice Lake or newer (Xeon or Core series); AMD Zen3 or newer (EPYC or Ryzen). Disable simultaneous multithreading (Hyper-Threading on Intel, SMT on AMD). Prioritize single-threaded performance over higher core count. |
| Storage | NVMe SSD of 1 TB for blockchain growth. |
| Memory | 64GB DDR4 ECC. |
| System | Linux Kernel 5.16 or newer. |
| Staking Process | Move SOL tokens to a staking-supported wallet. Follow the wallet’s instructions to create a stake account and delegate your stake. |
You can stake SOL by moving your tokens into a wallet that supports staking. There are many wallets that provide steps to create a stake account and do the delegation.
- READ MORE: How to Create a Cryptocurrency
Is Solana a good investment?
There is money to be made with cryptocurrencies in fact the global cryptocurrency market in just a decade has grown exponentially with the industry projected to reach $1.9 billion in 2028.In recent years Solana has grown to be one of the most popular blockchains, especially for its support for Play to Earn gaming (P2E) projects thanks to its smart contracts.
Solana built its platform using Ethereum’s technologies offering users services such as NFTs, metaverse, DeFi apps, meme coins, P2E games, and more.
It remains one of the fastest blockchain networks and is popular among investors. However, because blockchains are relatively new investments, susceptible to volatility, and scams, and not scrutinized through legislation no one can actually offer guarantees that cryptos and blockchains are profitable.
The prevailing rule of thumb is that investments in cryptocurrencies should have a diverse portfolio and be long-term. Purchases should be based on market capitalization, the volume of coins in the market, and be watchful of market trends and what purposes the particular cryptocurrency serves.
- READ MORE: How to Make Money with Cryptocurrency
Key Takeaways
- There are over 19,000 cryptocurrencies traded on decentralized blockchain platforms.
- Solana is a platform for decentralized apps and uses SOL tokens, boasting the ability to handle 50,000 transactions per second.
- Solana can’t be mined but uses a staking consensus mechanism where users earn rewards for verifying transactions.
- Solana has gained popularity in the Play to Earn gaming space and offers services like NFTs, DeFi apps, and P2E games. Investing in it requires a diversified, long-term strategy.
Image: Solana
This article, “What is Solana Coin? FAQs for Business Owners” was first published on Small Business Trends
