Since cryptocurrency came into existence, we have seen the launch of 1000s of coins (BTC, GMT, XRP, USTC, etc.). One of the most recent cryptocurrency coins to have been launched is Solana, which is a blockchain platform that has been built specifically for the creation of decentralized coins. This means consumers will be able to create their own digital coins for use within their own DApps. This nascent digital asset aims to solve many of the current issues by creating decentralized coins and providing users with an easy user experience while maintaining security and trust. In this article, we’ll explore everything you need to know about Solana, as well as its potential uses in the real world.
What are decentralized coins?
Before going into Solana and what it offers, we first need to understand the term decentralization and what it means. Decentralized coins are cryptocurrencies that are not managed by a central authority. This is key to cryptocurrencies and is one of the main goals that cryptocurrencies have set out to achieve. Crypto users want transactions that can be verified, transfer fees that are low and protect against fraud. When a cryptocurrency is not centralized, you get all of the above as well as the power to make decisions about how the network is run. You also increase the security of a cryptocurrency because it limits the amount of power that any one entity can have over the network.
What is Solana?
Solana is a decentralized blockchain platform that aims to resolve many of the issues that currently make creating and using cryptocurrency difficult. Solana is designed to create many of the benefits of decentralized coins with the safety and trust that comes with using a traditional, centrally managed system. This revolutionary coin isn’t just a website or an application. It’s a protocol and a platform that allows users to create their own coins. It’s also a way to create your own token and works by combining decentralized technologies with the advantages of existing centralized systems. This is the Solana vision in a nutshell: to create a system that can improve upon the technologies that have made the world so efficient.
How Does Solana Work?
Solana is built on top of the Hyperledger Fabric open-source protocol. This lets Solana users create scalable, user-friendly apps for the world”. It also allows its users to create their own private networks. These networks allow a user to connect with other users without relying on a central authority. This is a unique benefit because the internet currently relies on central authorities to connect people. Solana users can then create their own tokens on top of the Solana blockchain. These tokens allow users to share information and resources between participants in the system, creating what is referred to as “utility tokens.”
The Problem With Current Cryptocurrency Solutions
Decentralized coins are viewed as a potential solution to the problem of fraud and security. What was billed as the solution though is what makes the current system so difficult to use — the level of trust required to use them. Whilst they are viewed as an opportunity to create an ecosystem where individuals trust the system and applications that run on it, currently, people don’t trust it because they believe decentralized coins are too vulnerable to fraud and hacking. This, as a result, forces people to use centralized systems, where the risk of fraud is limited. The issue of trust becomes even more problematic when considering the complexity of the system. While decentralized coins like Bitcoin are relatively simple to understand, creating a similar coin that people are able to use is more complex. Solana aims to resolve this issue by creating a simple user experience while maintaining security and trust.
Conclusion
Decentralized coins are viewed as a potential solution to the issue of fraud and security in the blockchain sector. Solana is a blockchain platform that allows users to create their own private networks and create their own tokens. It aims to solve many of the current challenges that make decentralized coins difficult to use whilst to improve user experience, transparency and security. With the price of solana currently down, it may be the coin to buy if you want to enter the cryptocurrency market. As the going gains traction, the price will no doubt increase. It may then be too late to invest.
