$SOL
DApps) and smart contracts, known for their fast transactions and high efficiency compared to many other networks like Ethereum and Bitcoin.
Key features of Solana:
1. High speed:
Capable of processing over 65,000 transactions per second (TPS), compared to Ethereum which processes about 15–30 transactions per second.
2. Low transaction fees:
Transaction fees on Solana are very low (up to a fraction of a cent), making it suitable for applications that require a large number of transactions, such as games and financial applications.
3. Hybrid consensus mechanism:
Uses a combination of Proof of History (PoH) and Proof of Stake (PoS), where PoH efficiently records the order of events on the network.
4. Support for decentralized applications and non-fungible tokens (NFTs):
The Solana network has seen significant growth in NFT projects and decentralized finance (DeFi) applications.
5. High scalability without external solutions:
Unlike Ethereum which requires solutions like Layer 2 for scalability, Solana achieves scalability on the main chain itself (on-chain scalability).
6. Active community and developers:
It has an expanding ecosystem that includes hundreds of projects, including NFT markets, DeFi protocols, and digital wallets.
Drawbacks to be aware of:
Network outages:
Solana has faced temporary outages at times that affected trust.