What is Solana?
Solana is an open-source platform designed to securely host scalable, decentralized applications. Created by Anatoly Yakovenko and launched in 2020, Solana shares several similarities with Ethereum, earning it the nickname "Ethereum Killer."
Like Ethereum, Solana enables users to process transactions using its cryptocurrency, SOL, which can be purchased on major blockchains and used as a real currency—much like Ether, Ethereum's currency.
Additionally, it supports smart contracts, offering users protection against potential cyberattacks. However, Solana stands out by offering significantly lower fees than Vitalik Buterin's platform and executing transactions much faster, thanks to its innovative mining model. This model combines Proof of History (PoH) with Proof of Stake (PoS) systems.
This technological combination allows Solana to verify transactions more automatically and handle a greater number of operations per second than other networks. According to its White Paper, Solana can process approximately 710,000 transactions per second. Since its launch, the network has steadily grown in popularity, and by late 2023, its token, SOL, ranked as the fourth-largest cryptocurrency by market capitalization.
History of Solana
The story of Solana began in 2017 when Anatoly Yakovenko, a former Qualcomm engineer, drafted an idea that could revolutionize blockchain speed. His innovation? The Proof of History (PoH) protocol, an algorithm capable of generating unique timestamps for each block added to the network. This clever mechanism simplifies the validation process for transactions, giving blockchain networks a much-needed speed boost.
To bring his concept to life, Yakovenko teamed up with Greg Fitzgerald, another Qualcomm alum, to build a Testnet and put the protocol through its paces. By February 2018, the Testnet was up and running alongside the release of the network’s official white paper.
Later that year, three more former Qualcomm colleagues joined the project, initially named "Loom." However, to avoid confusion with a separate Ethereum-based initiative, the team rebranded to Solana Labs. With the vision clear, Solana Labs began its hunt for funding. In 2019, they secured $20 million in a seed round led by Multicoin Capital, setting the stage for rapid development.
In 2020, Solana officially launched its beta network, backed by a public token auction on CoinList that raised a staggering $1.7 billion. From there, the network gained momentum, bolstered by Solana Labs and the Solana Foundation, a non-profit organization based in Switzerland. The foundation has played a crucial role in funding and supporting the continuous growth of the network.
Today, Solana stands tall as one of the most innovative blockchain platforms, blending cutting-edge tech with a rapidly growing ecosystem. Its journey from a Qualcomm brainchild to a blockchain powerhouse is a testament to how bold ideas—and a bit of teamwork—can transform entire industries.
Related terms
Layer 1: A standalone blockchain network that processes and validates transactions without relying on external platforms.
DeFi: A financial ecosystem on the blockchain that eliminates intermediaries, offering services like lending, borrowing, and trading.