A Complete Guide to Solana (SOL)
Hello! Have you been curious about Solana (SOL), which is getting a lot of attention in the cryptocurrency market these days? Blockchain technology may seem complicated, but today, I will explain everything about Solana step by step so that anyone can easily understand it. Don't worry, even if you are a beginner in cryptocurrency!
Introducing Solana (SOL)
Solana is not just a cryptocurrency. It is a next-generation blockchain platform with innovative technology that overcomes the limitations of existing blockchains. The biggest feature is the lightning-fast transaction speed and the fee is cheaper than a cup of coffee.
If Ethereum processes 15 transactions per second, Solana can process over 65,000 transactions per second! Think of it as the difference between a highway and a country road. Thanks to this outstanding performance, developers around the world are building various applications on Solana.
💡 Good to know: Solana supports smart contracts, so it is used in various fields such as NFTs, games, and financial services!
The interesting history of Solana
Anatoly Yakovenko, the founder of Solana, was an engineer working at Qualcomm. One day in 2017, while drinking coffee, he came up with the idea of ""what if we could record time on the blockchain?"" This was the beginning of Solana's core technology, 'Proof of History'.
At first, many people were skeptical, saying, ""Recording time on a blockchain? Does that make sense?"" But Yakovenko and his team didn't give up, and eventually created an innovation that shook up the blockchain industry. Since its mainnet launch in 2020, Solana has grown rapidly, even earning the nickname ""Ethereum Killer"".
How did Solana become so fast?
Solana's secret weapon is a unique technology called 'Proof of History (PoH)'. While existing blockchains spend a lot of time checking ""who made the transaction first,"" Solana processes transactions by setting the time order in advance.
To put it simply, the existing method is like taking a number at the bank and waiting for your turn. On the other hand, Solana can be said to have created a reservation system in advance and process transactions right away at the appointed time. Thanks to this innovative approach, Solana can operate much faster and more efficiently than other blockchains.
🚀 Performance comparison: Bitcoin (7 TPS) → Ethereum (15 TPS) → Solana (65,000+ TPS)
TPS = Transactions Per Second
Where is Solana being used?
Solana's applications are really diverse. Think of it as a platform where you can install and use multiple apps, just like a smartphone.
In the NFT field, a large marketplace called Magic Eden, which threatens OpenSea, is operated based on Solana. Many creators are choosing Solana because artists can mint and sell their works at low fees.
In the DeFi field, decentralized exchanges such as Serum, Raydium, and Orca are actively operating. These are innovative financial services that allow loans, deposits, and transactions without the existing banking system.
In the gaming field, Solana is also attracting attention. Move-to-Earn games like Stepn and metaverse games like Star Atlas are running on Solana. Isn't it amazing that you can earn real money while playing games?
Good exchanges to trade Solana
There are many exchanges where you can buy and sell Solana. In Korea, you can easily trade at Upbit, Bithumb, Coinone, etc., and overseas exchanges such as Binance, Coinbase, and FTX are famous.
Since each exchange has different fees and trading pairs, I recommend comparing several exchanges. Beginners in particular should start with domestic exchanges that support Korean. In the case of Upbit, it is convenient because you can buy Solana directly with KRW.
💰 Exchange Selection Tips: Choose by comprehensively considering fees, security, customer service, and trading volume!
The Power of the Solana Community
There is a passionate community behind Solana's growth. If you search for the #Solana hashtag on Twitter, you can see active communication between Solana fans around the world. In the Discord channel, developers answer questions 24 hours a day and share new project information.
In particular, the hackathon hosted by the Solana Foundation is really famous. It is an event where developers from all over the world come together to implement new ideas for 48 hours, and many of the projects that come out of it are actually released as services. This active ecosystem is the driving force behind the further development of Solana.
The Solana Korea community is also actively operating in Korea. It is also contributing to the development of the domestic blockchain ecosystem through regular meetups and seminars.
Which Solana wallet should I use?
To safely store Solana, you need a dedicated wallet. Just like you store cash in a wallet, you need to store virtual currency in a digital wallet.
Phantom Wallet is the most popular Solana wallet. It can be installed as a Chrome browser extension, and it is really easy to use. The design is pretty and intuitive, so I highly recommend it to beginners!
Solflare is a wallet that provides both web and mobile app versions. It also has a built-in staking function, so you can deposit Solana and earn profits.
Sollet is the official Solana wallet, and it provides the most basic functions. It is simple and stable, but its functions are somewhat limited.
🔐 Wallet Security Tips: Never share your seed phrase (recovery phrase) with anyone else. Write it down on paper and keep it in a safe place!
Investing in Solana, you must know this!
⚠️ Must-read before investing
Investing in virtual currency can be expected to yield high returns, but it also comes with great risks. I will organize the things you must know before investing.
First, sufficient learning comes first. Carefully analyze Solana's technology, roadmap, and competitors. Don't invest just by listening to others. Study and understand it yourself before making an investment decision.
Second, invest only with money you can afford to lose. The cryptocurrency market fluctuates 30-50% a day. You should never invest in living expenses or emergency funds.
Third, diversify your investments. Don't just buy Solana, but also invest in other coins such as Bitcoin and Ethereum to reduce risk.
Fourth, avoid emotional trading. Avoid buying too quickly due to FOMO (Fear of Missing Out) or selling too quickly due to panic selling.
What is the future of Solana?
Solana is a young blockchain that is still growing. It was once criticized for the network outage in 2021, but the development team is solving these problems one by one. Recently, network stability has been greatly improved.
New trends such as Web3, Metaverse, and NFT all require fast speeds and low fees. In this respect, Solana can be seen as being in a very advantageous position. Especially in the fields of games and social media, its use continues to grow.
🌟 Notable Developments: Solana Mobile Project, Web3 Social Platform, New DeFi Protocols Continue to Be Released!
In Closing
How was your time learning about Solana today? Solana has the potential to be more than just a simple cryptocurrency, it could be the foundation of the future internet. Of course, there are still challenges to be solved, but I think it has great growth potential.
Whether it's an investment or a technical interest, it's definitely going to be interesting to watch Solana. If you have any questions, feel free to ask in the comments. Let's study and grow together! 🚀