SOLANA Uses cases, Competitors, Differentiators
Solana use cases: One of the fastest blockchains in the world. Read on.
Solana is a blockchain platform that supports layer-1 smart contracts. It is designed to host decentralized and scalable applications. This blockchain was created by San Francisco-based Solana Labs, While the open-source project is currently being run by the Geneva-based Solana Foundation. Anatoly Yakovenko published a proof-of-history (PoS) on the white paper in 2017 and created the first block of Solana on 16 March 2020.
SOL is the native cryptocurrency of the Solana blockchain that allows users to stake SOL coins to help process transactions faster and more efficiently. ·
Solana Use Cases
Solana is a fourth-generation blockchain with multiple uses:
- Solana has an open-source application that anyone can download for personal and commercial use
- The block time of the blockchain is 400ms, which is faster than many other blockchains. This allows thousands of transactions to be done in seconds and at extremely fast speeds.
- Solana Developers are using this blockchain to access their creative project ideas as Solana gives more stability and flexibility than any other blockchain.
- Some systems like Apricot Finance and Soland are built on the Solana blockchain that allows users to deposit or lend currency and earn interest or configure automatic repayment.
- Metaplex and Solanart are NFT applications built on the Solana blockchain that allows users to create and sell digital artwork. ·
- Players can earn cryptocurrencies and NFTs by playing games built on the Solana blockchain that has a Play to Earn (P2E) system.
- Some decentralized cryptocurrency exchanges such as Orca and Serum are also built on the Solana blockchain allowing users to trade cryptocurrencies in a non-custodial process.
How is Solana different from others?
- Solana can process transactions faster than BTC and ETH. With its short block times, it is as fast as Visa and MasterCard.
- Since Solana is a fourth-generation blockchain, it can handle high volumes of transactions, unlike many first and second-generation blockchain networks.
- Solana is a layered blockchain that makes it interoperable with other applications for managing and trading digital assets, such as cryptocurrencies, NFTs, or personal records.
Competitors of Solana
- Algorand: It is also an open-source decentralized blockchain network with a unique variation of the Proof-of-Stake (PoS) consensus mechanism to increase transaction speed.
- Ripple: It is a blockchain-based digital payment network and protocol. It is a faster mode of transaction and some banks use this method for making international settlements.
- Ethereum: Ethereum ranks second and Solana ninth in the list of top cryptocurrencies. However, Solana is a competitor to Ethereum as it processes transactions faster than Ethereum. Ethereum works on Proof-of-Stake (PoS) mechanism while Solana works on both Proof-of-History (PoH) and Proof-of-Stake (PoS).