Today is a good moment to publish an overview of another blockchain project and the token the team of Evercode Lab views as extremely interesting and promising. Last week, we started with Polkadot. This time, we would like to revisit the Solana project and how it can solve the blockchain scalability problem!

The Need for dApps

In one of our previous articles, we covered such an important phenomenon as dApps. Decentralized applications are, basically, apps that run on an independent foundation. In contrast with the conventional apps normally controlled by a single player, these P2P blockchain-fueled tools’ front-end code is stored in a decentralized fashion. As a result, they are independent and open-source.

With the web 3.0 trends becoming more and more popular, the current dApp market landscape now looks like this (as of December 7th): 

  • There are almost 4000 decentralized dApps available
  • As for the number of active users, it is now 257.82k with over 1 million daily transactions
  • The current 24-hour volume in USD is 272.79m

Thus, it is not an exaggeration to say that dApps are already an important factor in the next-gen digital economy. However, there is a problem here as well. It is all about blockchain scalability. 

Ethereum: Limitations and Solana’s Answer  

Once again, dApps, as a segment, have evolved rapidly. The problem with this growth is that the overwhelming majority of those DApps are “fueled” by Ethereum. While this blockchain is capable of processing a lot of transactions, it is struggling to keep up with the pressure.

It is no surprise, as today, for example, ETH accounts for almost 3000 dApps with 90.09k active users and 208.6k daily transactions. Thus, this blockchain is literally “overloaded”, while transaction fees are skyrocketing.

The Solana project, initially launched in 2017, was envisioned as an open-source blockchain initiative to leverage a range of disruptive technologies to handle this dApp-related channel.

As such, it seeks to constitute a highly scalable yet secure and decentralized platform to support countless nodes with no need to compromise its “bandwidth.” 

What Solana Is All About: Proof of History

First of all, it is noteworthy that Solana is a Proof of Stake network. However, nowadays it takes more than that to be a breakthrough technology. So, one of its key differentiators is the following fact: its PoS consensus system is backed by the “Tower Consensus.” Technically speaking, it is Solana’s implementation of PBFT aka “Practical Byzantine Fault Tolerance.”

Solana’s version of PBFT creates a global source of time-related data on its blockchain via the Proof of History (PoH) protocol. In a nutshell, it enables the Solana network to keep an all-embracing record of all the events that have occurred within the network.

Hence, the Tower Consensus can use this synchronizing “clock” to minimize the processing power needed to validate various transactions. As an outcome, significant resources can be saved, as there is no more need to analyze the timestamps of previous events. Owing to that, Solana is in the right position to outdo and outperform most competing blockchains.

In addition to the Proof of History and Tower Consensus, Solana is known for a range of innovations that enhance its scalability, speed, and productivity even further.

Among them: 

  • Solana’s Turbine block propagation protocol that resembles BitTorrent and makes it possible to resolve the scalability trilemma 
  • Its Gulf Stream transaction forwarding protocol that does not have to use a mempool owing to the fact that the needed validators are defined in advance
  • Solana’s runtime to process multiple parallel smart contracts aka “Sealevel” 
  • And more 

SOL Tokens

In line with many other smart contract projects, Solana offers its own token, SOL. This asset is used to support all transactions and operations within this environment. It can also be staked and is intended to be used to “govern” the network.

While this asset is still quite young, it already belongs to the TOP-5, after only BTC, ETH, Binance Coin, and Tether.

As a company determined to be able to offer a state-of-the-art White Label Crypto Wallet to our customers, we made sure that the Evercode WL solution features SOL among other 300 available crypto coins. 

Feel free to contact us to discuss the Lite version of it with three assets included or the Medium version with 10. Needless to say, custom-built wallets are also available!