Solana

A high-performance blockchain platform designed for speed, scalability, and low transaction costs.

Launched in 2020, Solana uses a unique consensus mechanism called Proof of History (PoH) combined with Proof of Stake to achieve extremely high throughput—capable of processing thousands of transactions per second with sub-second finality.

Key Features

• High Speed: Processes 50,000+ transactions per second (TPS)
• Low Fees: Transaction costs typically under $0.01
• Proof of History: Innovative timestamping system that improves efficiency
• Native Currency (SOL): Used for transactions, staking, and governance

Why It Matters

Solana has become a popular alternative to Ethereum for developers seeking faster, cheaper transactions. It's widely used for DeFi applications, NFTs, and gaming projects that require high throughput.

Many stablecoins, including USDC and USDT, are also issued on Solana, providing users with fast and inexpensive transfer options compared to Ethereum's higher gas fees.

Trade-offs

While Solana offers impressive performance, it has experienced network outages and has been criticized for being less decentralized than Bitcoin or Ethereum due to higher hardware requirements for running validator nodes.