The hidden gem of Solana Crypto? | The motley madman

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The Solana blockchain network has quietly made waves by allowing online businesses to make online sales and purchases with crypto. Thanks to Solana’s innovative blockchain solutions, merchants can now enjoy instant payments, without waiting days or even weeks for funds to be deposited into their bank accounts. Released in Spring 2020, its native token, SOL (CRYPTO: SOL), is one of the top 15 coins on the charts. As more companies start using its network, investors entering Solana now have a better chance of striking gold in the future.

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Real utility for real businesses

Solana is a blockchain network designed for speed, security and efficiency. It combines the proof of stake and consensus algorithm – PoS for short – with a new proof of story system, or PoH.

In PoS, the more of your own money you add to the pot, the more you get a significant share of the network’s reward pool. PoS relies on having as many people as possible to keep the network running smoothly and securely. Some networks, including the popular Ethereum, approve more expensive transactions faster than smaller ones. This is because Ethereum uses proof of work, PoW, giving miners the ability to select the most lucrative transactions first. In contrast, PoH is built like a clock; it records all transactions in real time, ensuring they are processed in order while speeding up the entire network.

Think of it like a traffic jam on the freeway. If the bigger cars come first, everyone has to sit down and wait, and the whole pavement moves more slowly. Solana’s approach keeps traffic smooth and constant, helping her network process 50,000 transactions per second, while the Bitcoin network (CRYPTO: BTC) – which relies on muscular computers to solve difficult mathematical puzzles in order to ‘approve transactions – can only manage five.

And since Solana’s ultra-efficient blockchain consumes much less power than proof of working blockchains like Bitcoin’s, it can also offer some of the lowest transaction fees on the market – less than $ 0.01. per transaction.

These numbers suggest that Solana has all the makings of a successful blockchain, backed by a strong native token that holds up on the crypto charts, outperforming Bitcoin and Ethereum (CRYPTO: ETH). The price of SOL is up more than 6,000% from its all-time low a year ago.

Since that low point, the Solana project has been busy building up game-changing partnerships. Chainlink, one of the largest blockchain smart contract networks, integrated with Solana, while Kin coin – the native crypto token of appKik chat – has migrated nearly 5 million user wallets to the Solana blockchain, strictly because that Solana is more than capable of handling Kin’s rapidly growing community. In return, Solana received a massive influx of users to its network, further increasing its value.

Solana’s utility makes it an excellent choice for the adoption of enterprise crypto. Perfectly positioned to offer fast, secure and transparent solutions for online shopping, Solana enables businesses to be paid instantly, while customers can rest easy knowing their card information will not be compromised.

Little fish in a blue ocean?

Solana is rapidly gaining momentum. In October 2020, Circle, one of the largest payments systems on the internet, partnered with Solana to enable immediate issuance of payments from USD Coin, a stable coin whose value is linked to the US dollar. In turn, Solana is providing Circle with a highly efficient ecosystem of payments, commerce and financial applications entirely on the blockchain, all at lightning speed.

But things get even more interesting when you remember that Circle partnered with VISA in December 2020 to make it easy for people to spend USD coins through Visa’s network. This likely means that even more people will use Solana’s network to pay other people and get paid, further increasing the value of SOL tokens over time.

Coins that offer utility have the best chance of increasing in value. Their underlying technology has to solve real world problems, and that is what Solana’s blockchain does. As more people sign up for the network – and buy SOL tokens to interact with it – its value should continue to rise.

Adding to Solana’s momentum, Digital Assets AG now offers tokenized stocks – digital assets listed on crypto exchanges – on Solana, with shares from Facebook, Google, Tesla, Netflix and Nvidia all available for trading. at launch. Tokenized stocks provide investors around the world with easy access to the US stock market and make it easy for small investors to buy fractions of stocks if they cannot afford whole stocks. the market is open – ideal if you are a night owl who enjoys watching the market 24 hours a day.

The stock market is currently worth nearly $ 100,000 billion, showing the huge potential for projects like Solana to gain a significant share of the market share for investment transactions. If more Fortune 500 companies go into token assets, early investors might have the best chance of reaping the resulting rewards.

SOL could be a buy and a hold. It’s a token with real utility, at a fair price, that you can add to your crypto holdings while taking advantage of the crypto trough. But this is not a definitive buy, as SOL, like all other coins, can fluctuate during bear markets. Add SOL to your crypto watchlist so you can actively monitor its price drops and gains, as the Solana project secures more lucrative deals in the weeks and months to come.

Keep an active eye on any drop in SOL’s price and watch Solana’s news page for more announcements that major players are joining its network. These two factors together could provide a perfect time for crypto investors.

This article represents the opinion of the writer, who may disagree with the official recommendation position of a premium Motley Fool consulting service. Were motley! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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