What is Solana?

Compound Interest Trader
3 min readNov 29, 2023
Photo by Shubham's Web3 on Unsplash

Disclaimer: The following article is for educational purposes only and not intended as financial advice. It’s always recommended to do your own research before making any investment decisions.

In the ever-expanding universe of blockchain technology, one name that often pops up is Solana

Known for its impressive speed and efficiency, Solana has carved a niche for itself, attracting both developers and investors alike

But what exactly is Solana, and why is it gaining so much attention in the crypto world? Let’s dive in.

The Birth and Philosophy of Solana

Solana was created by Anatoly Yakovenko in 2017

The core philosophy behind its inception was to improve scalability, a challenge that plagued earlier blockchains like Bitcoin and Ethereum

Yakovenko, with his background in distributed systems from working at companies like Qualcomm, aimed to create a blockchain that could support a high throughput without sacrificing decentralization or security.

The Technical Backbone of Solana

  • Proof of History (PoH): At the heart of Solana’s architecture is the innovative Proof of History consensus mechanism

Unlike traditional Proof of Work or Proof of Stake mechanisms, PoH creates a historical record that proves that an event has occurred at a specific moment in time

This is a game-changer as it allows the network to trust the time of events without having to witness them directly, significantly speeding up processing times.

  • High Throughput and Low Latency: Solana boasts a high throughput, reportedly capable of processing 50,000–65,000 transactions per second (TPS), which is leagues ahead of Ethereum’s 15–30 TPS

This is achieved through a combination of PoH and other optimizations like Gulf Stream, Turbine, and Sealevel.

  • Gulf Stream: This mechanism pushes transaction caching and forwarding, reducing confirmation times and memory pressure on validators.
  • Turbine: A block propagation protocol that breaks data into smaller packets, making it easier for nodes to process information quickly.

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Compound Interest Trader

I am learning about trading. My goal is growing my portfolio using compound interest