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FxWirePro- Solana- "Ethereum Killer"

Solana is the fastest permissionless blockchain in the world and is called an Ethereum killer within crypto communities. It supports NFT, Defi, Web3, and more.

Consensus Mechanism. Proof of History (POH). It is a mix of Proof of stake plus a new variable time to the network. Each transaction is timestamped with a hash SHA256, sequential hashing verifiable delay function (VDF).  Sha256 loops as fast as possible, such that each output is the next input. Solana uses ed25519 for encryption and Sha256 for hashing.

Solana’s number of key technical innovations, like Proof of history and parallel processing, reduce energy consumption. Each transaction uses only 0.0005 kWh or 1836 Joules of energy.

Activity

Energy Used, in Joules (J)

A single Google Search 1

1,080 J

A single Solana transaction

1,837 J

Keeping an LED light bulb on for one hour 2

36,000 J

Using a fully-charged iPhone 13 on battery 3

44,676 J

Working for an hour with a computer and monitor 4

46,800 J

One eth2 transaction 5

126,000 J

                                                                                     Source solana.com                                                                                                                       

Validators-

A validator node is a special node that participates in consensus. There are 1960 current validators on mainnet and 30 super minority.   Elections for a new PoH generator occur when the PoH generator failure is detected.  The validator with the largest voting power, or highest public key address if there is a tie is picked as the new PoH generator.

 

 Various types of rewards are

 

  • Protocol-based rewards

 

  • Staking

 

  • Stake pools

 

Solana's innovations-

1. Tower- BFT (A POH optimized version of PBFT)-

 Tower BFT leverages Solana’s PoH as a clock before consensus to reduce messaging overhead and latency.

2. Turbine-  A block propagation protocol-

A Solana cluster uses a multi-layer block propagation mechanism called Turbine to break down blocks into smaller packets for the random validator.  

3. Gulf Stream- Mempool-less transaction forwarding protocol

  A mempool is a database for storing unconfirmed transactions. It lacks mempool as the transaction is processed immediately without waiting time. Solana can handle 100000 sized mempool in a matter of seconds.

4.Sea level- Parallel processing of smart contracts without affecting network performance.

5. Pipeline- Transaction processing units for validation. It helps to improve blockchain validation times.

6. Cloud break- Horizontally -scaled accounts database. It is used to achieve scalability on the Solana network.

Solana Vs Ethereum comparison -

 

Solana

ETH

Transaction per second

65000

15

Average cost per transation

$0.00025

$15

Consensus mechanism

Proof of History

Proof of Work

Consensus Energy consumption

Low

High

Block time

400 milliseconds

12 to 14 seconds

programming language

Solidity

C,C++,Rust

Defi market

3.6% market share

60%

Adjusted Total value unlocked

$2.1B

$41.41B

 

 

 

 

Solana

ETH 2.0

Decentralization

Less as validators require high-performance hardware and network

High. It doesn't require any specialized equipment

TPS

65000

100000*

Block time

0.40 Seconds

12 seconds

Solana blockchain has more advantages due to high scalability and fewer transaction fees. But upgradation of Ethereum 2 will have a positive impact due to an increase in Transaction per second. The major disadvantage of ETH will be higher gas fees.

Top Dapps ranking:

 

Top Blockchain dApps

 

 

 

dApp

Category

Blockchain

1

PancakeSwap

DeFi

WAX,BNB Chain

2

Gameta

Games

Solana, BNB Chain

3

Alien Worlds

Games

WAX,BNB Chain

4

Spinterlands

Games

Hive, WAX

5

Atomic assets

Other

WAX,EOS

6

Sweat Wallet

Games

ETH,NEAR

                                                                           Source- dappradar.com

Top Solana dapps - All blockchain (Games)

 

 

dApp

Category

Blockchain

Gameta

Games

Solana, BNB Chain

Sweat Wallet

Games

ETH,NEAR

Spinterlands

Games

Hive, WAX

Alien Worlds

Games

WAX,BNB Chain

Spinterlands

Games

Hive, WAX

                                                            Source- dappradar.com

Top game dApps of  August as per Daily Average Unique active wallets

 

Blockchain

 Daily AUAW

Alien worlds

ETH,BNB Chain

197K

Spinterlands

SPS

168K

Farmers world

WAX

83K

Gameta

SOLANA

54K

Upland

EOS

39K

Axie infinity

AXS

37K

Era7:game of truth

BNB chain

24K

Play mining

DEAP

23K

 In Aug average 847230 daily Unique Active Wallets (UAW)  have connected to gaming blockchain 11% less compared to the previous month. UAW on the Binance blockchain increased by 8% mom. While Solana surged by 21% month-over-month. (source dappradar.com).

Top dApps Solana ranking (All category).     

dApp

Category

ATVL

Raydium

DeFi

$66.04M

Marinade Finance

DeFi

$237.12M

Solend

DeFi

$229.43M

Saber

Defi

$42.13M

Magic Eden

NFT Market place

$1.71B

Solanart

NFT Market place

$658.51M

Solsea

NFT Market place

$32.54M

                          Source- dappradar.com

Defi dApps surged on Ethereum scaling solutions on account of the ETH merge. Ethereum controls the Defi market by a 69% share. Solana TVL dropped by 34% in August month as a result of a wallet attack.

Recent News:

According to Nansen’s state of the quarterly report, Solana's daily transactions increased to more than 40 million between April to June compared to Ethereum's 1 million.

Helium developers shifted the entire network to Solana blockchain to “improve operational efficiency and scalability.   

Technical:

Solana's major resistance is around $50, and any breach above targets $56.50/$60. Any daily close above $60 will pave way for $100 levels. Significant weakness can be seen if it breaks below the $25 level. A dip to $11 is possible. It is good to add on dips around $30 with SL around $20 for TP of $100. 

 

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