Here at LATOKEN Exchange, we consistently review the tokens that have that unique component and have the potential to remain in the crypto market for a long time. Today, we will do a LATOKEN review of Solana (SOL).
As of early 2021, there are over 4,000 crypto currencies in the world. Most of them claim to be the special ones, but not all of them have a unique component to them.
What is Solana Token (SOL)?
At the time of writing this article, Solana token (SOL) is trading at $31.57, and has a market capitalization of $8,674,194,612. It is currently ranking at #14 on the cryptocurrencies list on coingecko.
Solana token (SOL) is a token of a namesake protocol that aims to make transactions on blockchain more efficient. Not just by a few, but the Solana Protocol claims that it’s transactions per second rate is 50,000 TPS. For the record, Ethereum has a rate of 15 TPS.
What Makes Solana Protocol Special?
The value of the SOL token is tightly connected to the success and position of the Solana Protocol. However, based on the trajectory of the Solana protocol – it is likely to remain at a leading position in the crypto market because it solves important roadblocks in blockchain technology.
The first roadblock that Solana protocol solves is speed. Solana protocol introduced a Proof-of-History option that allows nodes to communicate faster, without additional back-and-forth messaging. Simply put, it is like the difference between how people used to send documents for a signature last century vs how it is done today with the systems in place for a 100x faster process.
The second roadblock that Solana protocol solves is the cost. Currently, the transaction cost on Solana is $10 for a $1 million transaction. This is a lot lower than other platforms and protocols that charge huge fees for transactions.
What Is Solana token’s role on and off the network?
Solana (SOL) is used for transaction fees for transfers and smart contracts. The network burns SOL as part of its deflationary model. SOL holders on the Solana network can become network validators. In addition, SOL enables users to get passive rewards through the network’s delegated staking options.
In conclusion of LATOKEN Review, while the Solana (SOL) is used on its namesake protocol, this token is likely to keep growing and remain to be one of the top tokens in the crypto market. However, only time will tell the true direction of the token. As for now, traders can buy Solana (SOL) on the LATOKEN exchange.
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LATOKEN crypto exchange does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Like other assets, cryptocurrency is subject to market risk. Please do your own research and trade with caution.