Solana is a layer 1 blockchain platform that is equipped with smart contract functionality. The platform aims to solve the many scalability problems faced by blockchain developers and users in the industry. These problems have been around for several years and while many have tried to solve them, few have succeeded. So far, most of the proffered solutions often compromise the decentralized nature and security of the blockchain. These features are vital for a blockchain to function properly. Solana was created to solve scalability problems while maintaining the decentralized nature and security of its blockchain. It incorporates an innovative technology that increases its throughput while maintaining other blockchain functionalities.
For most people in the crypto space, the true benefit of a blockchain lies in what it can do for them. The use cases of a blockchain are as vital if not more so than the blockchain itself. This is because the use cases of a blockchain allow users to explore various aspects of the crypto ecosystem. The goal of the Solana blockchain is to offer several use cases to blockchain developers and users. In this article, we are exploring the use cases of Solana.
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Faster Than Ethereum
Ethereum is currently the second largest cryptocurrency by market cap. It is second to Bitcoin and was initially created as an enhanced version of the Bitcoin blockchain. It achieved its status as the second-best crypto by incorporating smart contracts and offering a relatively high transaction per second (TPS) of 15. In comparison with Bitcoin which processes 4.6 transactions per second, this is quite impressive. However, with the ever-growing Ethereum network, 15 transactions per second are still not scalable enough. This often leads to increased gas fees and slower transactions which in turn affects the functionality of the DApps that run on the Ethereum network.
The Solana blockchain aims to improve on this by allowing users to process a thousand times more transactions than any other blockchain. This feature makes it one of the fastest blockchains existing today. Speed is a vital part of the crypto industry. It affects every aspect of the blockchain and the programs that run on it. With Solana, users and developers can process transactions cheaper and faster.
Decentralized Applications (DApps)
The Solana blockchain has smart contract functionality which means that users and developers can create and execute smart contracts on the blockchain. Developers can also use these smart contracts to develop decentralized applications (DApps). This feature opens a whole realm of possibilities and use cases for the blockchain. DApps have a variety of use cases ranging from finance to gaming and even real estate. Solana’s smart contract feature means that developers can create a wide range of decentralized applications. However, the development of DeFi and NFT platforms has been the main focus of most developers who use the Solana network. DeFi platforms were developed to eliminate the need for third-party interference by offering financial services in a decentralized manner.
As developers discover new ways to scale their platforms using the Solana blockchain, the network continues to grow. Solana currently hosts several DApps on its blockchain.
The smart contract feature can also be found on the Ethereum blockchain but Solana’s high throughput attracts more developers.
Non-Fungible Tokens (NFTs)
Non-fungible Tokens (NFTs) are a crypto innovation that has taken the world by storm. This innovation allows people to create a digital version of their work. The work could be anything from art to music. Some NFTs might even be video clips. The possibilities in the NFT space are endless.
Solana allows developers to create NFT platforms that serve as marketplaces for NFT traders. These platforms allow users to create, sell, or buy NFTs.
This creates a variety of use cases. For example, users can create new NFTs and list them on the platform. A user could also buy an NFT and store it with the hope that its value will appreciate.
NFTs allow creatives to turn their works into digital assets that can be stored for several years.
The assets are referred to as “non-fungible” because they are unique and therefore cannot be duplicated. This means that artists do not have to worry about copyright infringement.
The NFT serves as proof of ownership for the artist which protects them from theft.
Read Further: How to make an NFT: All You Need To Know
Trading and Passive Income
There are fewer things that attract a user to a cryptocurrency than the possibility of making a profit. Most users adopt new cryptos simply because of the probability that they might make money. Solana, like most cryptocurrencies in the industry, creates a means by which investors and traders can make a profit. Using the native token of the Solana blockchain, SOL, traders, and investors can make money. Traders can exchange SOL for other cryptocurrencies and make a profit from the arbitrage (price difference).
Similarly, investors can make money by buying and holding SOL and waiting for it to increase in value. This offers the investor a passive income. SOL is mainly used to pay transaction fees on the Solana network. It can also be used to become a validator within the network.
Why Should You Invest in SOL?
The needs of every investor vary from person to person. While some investors and traders seek immediate profit others are ready to play the long-term game. For this reason, investing in SOL is a decision that can only be made by you. Solana has a long list of benefits that continue to attract new investors. It has a high potential for growth and many trusted crypto analysts believe that it will achieve great things in the industry. Its ability to scale and variety of use cases make it the ideal blockchain network for developers and users who require fast transactions and low fees. Solana’s high throughput is a feature that will always attract new users because many blockchains are lacking in this area. This means that the blockchain could have a high probability to attain great success in the future.
*No information in these or any other articles on the swapzone.io website should be considered as investment advice. Always do your own research.
How and Where to Buy Solana
If you decide to invest in Solana, the next step is to choose a reliable crypto exchange where you can buy the token. Depending on your preferences you might want to opt for a centralized or decentralized exchange.
Swapzone – as an exchange aggregator – allows you to swap, buy and sell a variety of cryptocurrencies including SOL, choosing among 15+ trustworthy exchange partners.
Here are some simple steps to buy SOL on Swapzone:
- Select the Solana swap pair (for example ETH to SOL).
- Enter the total amount of ETH you are going to exchange.
- Choose the best ETH to SOL swap offer.
- Click on the Exchange button.
- Enter your wallet address to receive Solana to your wallet.
- Send your ETH deposit to the generated address.
- Wait for your ETH-SOL swap to be done.
- Receive your SOL to your wallet!