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If you’re a crypto fan, you’ve likely noticed a new rising star on the horizon: Solana (SOL) has rocked the market recently, skyrocketing to claim a place among the very top cryptocurrencies. Find out what you need to know if you are considering buying SOL in this article.
Solana in a nutshell
Solana is not shy about the fact that scalability is one of their top priorities, as stated on their official website:
“Solana is a decentralized blockchain built to enable scalable, user-friendly apps for the world.”
As you may know, it is possible to run apps on some blockchains – these are called decentralised apps (DApps). How? Let’s imagine a blockchain was the operating system for your computer or smartphone (Windows, MacOS, Android, iOS, etc.), and DApps are running on it, just like ordinary apps on your devices. The Solana blockchain is one of those blockchains that supports apps, but with next-level speed and scalability. Solana achieves this advantage over its competitors with its innovative Proof of Stake mechanism, sharding and ready-to-go building blocks for DApps.
Solana’s outstanding speed allows apps used on the blockchain to run faster than other apps on different blockchains. Throughput is usually measured in transactions per second (TPS): the higher this number, the faster the blockchain.
If more and more people were to start using these apps, they would be bound to become slow and overpopulated, because the blockchain would not be able to keep up. You know how it is: when the memory’s getting full on your phone, your phone and its apps slow down. Imagine Solana as a phone with a memory that grows every time it’s about to get full and cause the phone to slow down. This is where Solana’s great scalability – the ability to handle a growing amount of transactions by adding resources to the system – comes into effect.
Solana vs. Ethereum
If you want to be the champion, you have to beat the champion. In this context, Ethereum is a veteran heavy-weight master. Does Solana stand a chance against the best in show? Let’s take a look.
Solana’s higher transactions per second indicates that its claims about the speed are backed by numbers. Still it’s worth bearing in mind that while Ethereum’s current version lags behind in terms of speed, the upcoming Ethereum 2.0 update could well change the tides in favour of the second biggest crypto.
Are you thinking of buying?
“Research is not for me, it’s boring” – if this is you, the next 15 seconds of reading might change your mind. You don’t need to dive into academic articles and whitepapers to see if you should invest, although, of course, we won’t stop you. Researching before investing, however, is vital: here are 4 simple steps to follow:
- Visit the coin’s official website – in Solana’s case, solana.com – and see how you feel about the goals and status of the project
- Take a look at the price development – you can easily do this with basic charts in our Bitpanda Web App, or on our iOS and Android apps
- Ask yourself what kind of returns you are after – do you prefer higher, but riskier returns quickly, or long-term results with possibly reduced risk
- Pose the ultimate question: will this altcoin help me comfortably achieve my goals? Consider the figures, but don’t silence your intuition
Where can you buy Solana (SOL)?
At Bitpanda, you can buy Solana (SOL) with literally a few clicks on your phone or computer. Our easy-to-use interface makes investing in crypto and other digital assets a walk in the park. All you need to do is to register and verify on Bitpanda and you can start right away.