{"id":469270,"date":"2021-08-15T06:36:53","date_gmt":"2021-08-15T06:36:53","guid":{"rendered":"https:\/\/wncen.com\/?p=469270"},"modified":"2021-08-15T06:50:49","modified_gmt":"2021-08-15T06:50:49","slug":"an-introduction-to-solana-innovations-characteristics-and-criticism","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/an-introduction-to-solana-innovations-characteristics-and-criticism\/","title":{"rendered":"An Introduction To Solana: Innovations, Characteristics, And Criticism"},"content":{"rendered":"
Will Solana be the one? The race to be the prime smart-contract-enabled blockchain is heating up. Many projects are chasing Ethereum\u2019s tail, offering faster and cheaper transactions plus technological innovations. What does Solana offer? An internal clock. An incredibly higher number of transactions. Fees so low that are almost non-existent. The possibility to scale to global adoption in their layer 1.\u00a0<\/span><\/p>\n Related Reading | Solana to Launch Stake Pools, This Is How It Will Enable Rewards For SOL Holders<\/a><\/strong><\/em><\/p>\n Will this be enough to capture the market? Is Solana the mythical Ethereum-killer that everyone is looking for? Keep reading and get enough info to make your own mind. We\u2019ll summarize the good, the bad, and the ugly in digestible bullet points and short text.<\/span><\/p>\n Contrary to what the name suggests, proof of history is not a consensus mechanism. Solana uses Proof-Of-Stake to validate its blocks. \u201c<\/span>The core Solana innovation is Proof of History (POH), a globally-available, permissionless source of time in the network that works before consensus,<\/span><\/i>\u201d says the following video\u2019s information box.\u00a0<\/span><\/p>\n To drive the point home, let\u2019s also quote <\/span>Techcrunch<\/span><\/a>:<\/span><\/p>\n Enter Yakovenko\u2019s big idea, which he calls \u201cproof of history,\u201d wherein the Solana blockchain has developed a kind of synchronized clock that, in essence, assigns a timestamp for each transaction and disables the ability for miners and bots to decide the order of which transactions get recorded onto the blockchain. Yakovenko says doing so allows for greater security and \u201ccensorship resistance.\u201d<\/span><\/p><\/blockquote>\n Solana\u2019s creator is Anatoly Yakovenko, a San Francisco resident \u201c<\/span>who spent more than a dozen years as an engineer working on wireless protocols at Qualcomm.<\/span><\/i>\u201d He wasn\u2019t interested in cryptocurrencies until he figured out a way to improve the system. In traditional blockchains, the blocks don\u2019t carry a timestamp and that leads to inefficiencies. Yakovenko figured out a way to include it in the SHA-256 (Secure Hashing Algorithm 256) hash function, and the rest is history\u2026 proof of history.<\/span><\/p>\n This section will be the only technical part of the article, we promise. To start, we\u2019re going to quote <\/span>EVALUAPE\u2019s analysis<\/span><\/a>. They\u2019re \u201c<\/span>a platform for demonstration and evaluation of blockchain projects<\/span><\/i>.\u201d<\/span><\/p>\n VDF, Verifiable Delay Function:<\/span><\/p>\n A function used to generate PoH. It is a collision resistant hash function. In short, this is a function that takes a bunch of data inputs and spits out an output in fixed size. The main advantage of the function is its security.<\/span><\/p><\/blockquote>\n Avalanche Communication:\u00a0<\/span><\/p>\n Simply speaking, since the hash value in every timestamp is calculated by the previous hash value, a long range of hash value can be broke into small partitions to be verified separately by the nodes. Each node only needs to verify a partition of hash value, and then concatenate and restore to a long hash value.\u00a0<\/span><\/p><\/blockquote>\n And for the next batch, we\u2019ll quote <\/span>Decrypt\u2019s analysis of the Solana<\/span><\/a> platform.<\/span><\/p>\n Tower Consensus, a variant of Proof-Of-Stake that:<\/span><\/p>\n Enables distributed networks to reach consensus despite attacks from malicious nodes, known as Practical Byzantine Fault Tolerance (PBFT).<\/span><\/p>\n Solana’s implementation of PBFT enforces a global source of time across the blockchain through a second novel protocol known as Proof of History (PoH).<\/span><\/p><\/blockquote>\n Sealevel:<\/span><\/p>\n This allows for a parallel smart contracts runtime that optimizes resources and ensures that Solana can scale horizontally across GPUs and SSDs, which should help the platform scale to meet demands.<\/span><\/p><\/blockquote>\n Gulf Stream:<\/span><\/p>\n Solana also completely nixes the mempool system used by other platforms, and instead forwards transactions to validators even before the previous batch of transactions is finalized. This helps to maximize confirmation speed and boost the number of transactions that can be handled both concurrently and in parallel.\u00a0<\/span><\/p><\/blockquote>\n Related Reading | Why Solana and Polkadot Have Been The Least Impacted By The Crypto Crash<\/a><\/strong><\/em><\/p>\n <\/p>\n About Solana\u2019s objectives, Anatoly Yakovenko told <\/span>Techcrunch<\/span><\/a>:<\/span><\/p>\n \u201cEverything that we do to make this thing faster and faster results in this better censorship resistance and therefore better markets,\u201d he said yesterday. \u201cAnd price discovery is what I imagine is the killer use case for decentralized public networks. Can we be the world\u2019s price discovery engine? That\u2019s an interesting question to ask.\u201d<\/span><\/p><\/blockquote>\n Will Solana be the one? The race to be the prime smart-contract-enabled blockchain is heating up. Many projects are chasing Ethereum\u2019s tail, offering faster and cheaper transactions plus technological innovations. What does Solana offer? An internal clock. An incredibly higher number of transactions. Fees so low that are almost non-existent. The possibility to scale to global adoption in their layer 1.\u00a0 Related Reading | Solana to Launch Stake Pools, This Is How It Will Enable Rewards For SOL Holders Will this be enough to capture the market? Is Solana the mythical Ethereum-killer that everyone is looking for? Keep reading and get enough info to make your own mind. We\u2019ll summarize the good, the bad, and the ugly in digestible bullet points and short text. What Is Proof Of History And How Does It Work?\u00a0 Contrary to what the name suggests, proof of history is not a consensus mechanism. Solana uses Proof-Of-Stake to validate its blocks. \u201cThe core Solana innovation is Proof of History (POH), a globally-available, permissionless source of time in the network that works before consensus,\u201d says the following video\u2019s information box.\u00a0 To drive the point home, let\u2019s also quote Techcrunch: Enter Yakovenko\u2019s big idea, which he calls \u201cproof of history,\u201d wherein the Solana blockchain has developed a kind of synchronized clock that, in essence, assigns a timestamp for each transaction and disables the ability for miners and bots to decide the order of which transactions get recorded onto the blockchain. Yakovenko says doing so allows for greater security and \u201ccensorship resistance.\u201d Solana\u2019s creator is Anatoly Yakovenko, a San Francisco resident \u201cwho spent more than a dozen years as an engineer working on wireless protocols at Qualcomm.\u201d He wasn\u2019t interested in cryptocurrencies until he figured out a way to improve the system. In traditional blockchains, the blocks don\u2019t carry a timestamp and that leads to inefficiencies. Yakovenko figured out a way to include it in the SHA-256 (Secure Hashing Algorithm 256) hash function, and the rest is history\u2026 proof of history. Other Innovations That The Solana Blockchain Offers This section will be the only technical part of the article, we promise. To start, we\u2019re going to quote EVALUAPE\u2019s analysis. They\u2019re \u201ca platform for demonstration and evaluation of blockchain projects.\u201d VDF, Verifiable Delay Function: A function used to generate PoH. It is a collision resistant hash function. In short, this is a function that takes a bunch of data inputs and spits out an output in fixed size. The main advantage of the function is its security. Avalanche Communication:\u00a0 Simply speaking, since the hash value in every timestamp is calculated by the previous hash value, a long range of hash value can be broke into small partitions to be verified separately by the nodes. Each node only needs to verify a partition of hash value, and then concatenate and restore to a long hash value.\u00a0 And for the next batch, we\u2019ll quote Decrypt\u2019s analysis of the Solana platform. Tower Consensus, a variant of Proof-Of-Stake that: Enables distributed networks to reach consensus despite attacks from malicious nodes, known as Practical Byzantine Fault Tolerance (PBFT). Solana’s implementation of PBFT enforces a global source of time across the blockchain through a second novel protocol known as Proof of History (PoH). Sealevel: This allows for a parallel smart contracts runtime that optimizes resources and ensures that Solana can scale horizontally across GPUs and SSDs, which should help the platform scale to meet demands. Gulf Stream: Solana also completely nixes the mempool system used by other platforms, and instead forwards transactions to validators even before the previous batch of transactions is finalized. This helps to maximize confirmation speed and boost the number of transactions that can be handled both concurrently and in parallel.\u00a0 Key Characteristics Of The Solana Blockchain Technically, it\u2019s still in beta. Their MainNet is up and running, though. Low barrier of entry to become a validator. There\u2019s no minimum stake to start validating, but the possibility of being selected is directly tied to the size of your stake. It\u2019s even faster than legacy financial systems AND centralized cryptocurrency exchanges.\u00a0 Over 100 projects were building on Solana by the end of 2020. Now, there are more than 250. The growth is exponential. At the time of writing, their official stats report 905 validators and 1331 nodes. The Avg. fee per transaction is $0.00025. They currently report 1,375 transactions per second. The project supports smart contracts in any programing language. Powerful Allies And Co-Signs It\u2019s the \u201cofficial chain\u201d for USDC. And USDC is the second-largest stablecoin in the world. Sam Bankman-Fried\u2019s FTX and Alameda Research. Their Serum DEX runs on Solana, as well as their projects Maps.me and Oxygen, a borrowing\/lending DeFi protocol. Related Reading | Why Solana and Polkadot Have Been The Least Impacted By The Crypto Crash Solana, Criticism And Scandals\u00a0 Even though they have ample documentation freely available, the project doesn\u2019t have a clearly defined roadmap. Their official tokenomics clearly say \u201cSubject to change.\u201d There\u2019s not enough information about the functions of the Solana Foundation. And they hold more than 10% of the SOL token. And manage a community reserve of a whopping 38%. Someone detected a mysterious wallet with 11,365,067 SOL. They ended up being an undisclosed loan from the Solana Foundation to a market-making firm that provided liquidity on Binance. Those tokens were eventually burned, but wow. In December, for six hours, \u201cSolana\u2019s Mainnet Beta network halted new block confirmations, which resulted in a temporary outage.\u201d The reason was \u201cA validator booted up two instances of their machine and it started transmitting multiple different blocks for the same slot, eventually creating 3 different unconfirmed minority partitions of the network. \u201d Their excuse was that Solana is still in beta, which is fair. SOL price chart for 08\/15\/2021 on FTX | Source: SOL\/USD on TradingView.com A Quote To Close This About Solana\u2019s objectives, Anatoly Yakovenko told Techcrunch: \u201cEverything that we do to make this thing faster and faster results in this better censorship resistance and therefore better markets,\u201d he said yesterday. \u201cAnd price discovery is what I imagine is the killer use case for decentralized public networks. Can we be the world\u2019s price discovery engine? That\u2019s an interesting question to ask.\u201d Featured Image by Zack Dowdy on Unsplash – Charts by TradingView<\/p>\n","protected":false},"author":539,"featured_media":469271,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[84030,84027,15062,84028,84029,71704,84026,3537,83748,83626,84031,4075,16680],"class_list":["post-469270","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-alameda-research","tag-anatoly-yakovenko","tag-centre","tag-decrypt","tag-evaluape","tag-ftx","tag-proof-of-history","tag-proof-of-stake","tag-sam-bankman-fried","tag-solana","tag-solana-foundation","tag-techcrunch","tag-usdc"],"acf":[],"yoast_head":"\nWhat Is Proof Of History And How Does It Work?\u00a0<\/span><\/h2>\n
Other Innovations That The Solana Blockchain Offers<\/span><\/h2>\n
Key Characteristics Of The Solana Blockchain<\/span><\/h2>\n
\n
Powerful Allies And Co-Signs<\/span><\/h2>\n
\n
Solana, Criticism And Scandals\u00a0<\/span><\/h2>\n
\n
SOL price chart for 08\/15\/2021 on FTX | Source: SOL\/USD on TradingView.com<\/a><\/pre>\n
A Quote To Close This<\/span><\/h2>\n
Featured Image by Zack Dowdy<\/a> on Unsplash<\/a> - Charts by TradingView<\/a><\/pre>\n","protected":false},"excerpt":{"rendered":"