Crypto Corner: a profile on SOL

We’re back with another new cryptocurrency to introduce you to! This week, we’re looking at SOL, the native token of the Solana blockchain.

What’s it all about?

SOL is an ERC-20 token that powers the Solana blockchain, a platform that supports custom smart contract creation and hosts decentralised applications (dapps). The network can process a high number of transactions and has significantly lower transaction fees compared to rival networks, such as Ethereum.

Solana uses a proof-of-stake (PoS) protocol to validate transactions, as well as a proof-of-history approach (PoH). Put simply, this is a protocol which creates a historical record that proves an event has occurred at a specific moment in time. The purpose of this is to ensure real time has passed between each transaction as it was generated, and that the recorded order is the same as it was in real time.

What can you do with SOL?

Anyone who owns SOL can use the token to help operate the Solana network. Users can stake tokens on the network, which in turn rewards them with newly-minted SOL and transaction fees based on the amount locked, the inflation rate and the number of transactions executed on the platform.

Owning SOL also gives users access to multiple projects that have been built on the Solana network.

Who came up with the idea?

The idea behind Solana was first visualised in 2017 by Anatoly Yakovenko, before it was officially launched in 2020. It is currently run by the Geneva-based organisation, The Solana Foundation, while its blockchain was built in San Fransisco by Solana Labs.

Any fun facts?

Solana is one of the most popular Ethereum alternatives. So much so, that it has even been touted as an “Ethereum killer”, along with other popular blockchains, Polkadot and Cardano.