Could SOL Be a Millionaire Maker Coin?
Solana (SOL) is one of the best cryptos to invest in and could make you a millionaire if you invest in it correctly.
The emergence of blockchain technology has led to the birth of thousands of cryptocurrencies. The success of assets like Bitcoin (BTC) and Ether (ETH) has got investors actively looking for the next "Bitcoin" - a cryptocurrency that could generate massive returns over the next few years.
One such digital asset that is bursting with potential and has made headlines in recent times is Solana (SOL). The relatively newer cryptocurrency has experienced significant growth over the past few days, garnering the attention of traders and investors.
Based on factors such as price history, network updates, market capitalization, etc., it appears that Solana could be a millionaire-maker coin. But before we discuss SOL's potential as an investment, let's understand what Solana is, why it's increasingly becoming popular, and the factors contributing to its ongoing bull rally.
Solana (SOL): What Is It?
Solana is a fourth-generation blockchain network and cryptocurrency that uses an open infrastructure to facilitate greater scalability. The network has introduced several new and unique functionalities to provide users with enterprise-grade security and unmatched transaction speeds. The Solana network has seen considerable growth since its launch in 2017.
Solana is a Delegated-Proof-of-Stake (DPoS) network. DPoS networks are several times faster than PoS blockchains. The average block time for Solana is 2.34 seconds. Additionally, bench tests have shown the network can approve blocks in as little as 1.6 seconds. Given that Bitcoin needs 10 minutes to accomplish the same task, it's easy to see why DPoS blockchains are continuing to gain momentum.
Solana aims to tackle several pain points and issues challenging the crypto market at the moment. The network's architecture is structured to be resilient to censorship and expandable by nature. Solana's trustless and distributed blockchain is fighting issues related to transaction settlement speed and bandwidth through its design.
Is Solano a Million Maker Investment?
Solana's native token SOL kickstarted 2021 with a price of $2.1. It further skyrocketed, breaking its long-time resistance to reach an all-time high of $48.43 on April 25, 2021. Notably, within just five months, the coin has surged by over 2800%, making it one of the best-performing cryptocurrencies in the world.
Over the past month, Solana has leaped over various cryptocurrencies, including Theta, and TRON, to become the 14th most valuable crypto by market capitalization, with a collective value of $11,916,385,359.
For this and many more reasons, Solana's potential as a millionaire-maker is undeniable.
Don't Miss: Solana Price Predictions
Factors That Could Make Solana A Millionaire Maker
The crypto sector has faced scalability issues for a few years now. Early blockchain networks relied on the Proof-of-Work (PoW) consensus mechanism, which led to congestion problems. Top crypto networks such as Bitcoin and Ether were designed to increase the transaction fees as the network's congestion surged. Unfortunately, this has caused significant issues for both of these networks. Due to the recent rise in DeFi platforms, Ethereum is currently flooded with new projects, and this congestion translates to more fees and transaction delays for users.
The Solana network avoids these issues by employing systems that enable the network's transaction throughput to scale along with its bandwidth. For instance, Bitcoin can handle seven transactions per second (TPS), and Ethereum can process around 12. According to reports, Solana is capable of handling 50,000 TPS.
2. Censorship resistant
Solana blockchain's trustless and distributed nature makes it apt for day-to-day trade. Users can seamlessly perform global transactions in seconds, paying a fraction of the cost charged on most popular cryptocurrency networks. Additionally, since Solana is entirely decentralized, no one can stop, block, or suspend transactions like fiat currencies.
3. Delegated staking
As a delegated staking blockchain, Solana users gain several advantages over other blockchain networks. For one, any user is free to secure a passive income staking their SOL holdings on the network. Staking protocols are continuing to gain popularity in the crypto market because they are easier to use and provide more stable rewards when compared to trading.
4. Advanced features and protocols
The Solana network is packed with a wide range of proprietary systems. These systems work together to create a reliable, functional, and secure blockchain platform. Some of these systems fueling Solana include:
- Proof of History - This mechanism increases the efficiency of the Solana blockchain by integrating timestamps in the approval of every transaction. These timestamps allow nodes to establish the sequence of events. In this manner, the PoH system acts as a cryptographic clock for the entire network.
- The Tower BFT - This protocol improves the network's responsiveness by allowing validators to vote on the state of the ledger. This system also records the previous votes, and lets validators reference them instead of running the entire transaction chain. This speeds up the validation process quite a bit.
- Gulf Stream - The Gulf Stream mechanism eliminates the mempool protocol. A mempool can be considered a waiting area for transactions before they are selected to move on to the next block. In Bitcoin, the mempool is used to let miners choose the highest paying transactions to process first. Gulf Stream has introduced a new strategy, which allows the network to forward transactions to validators before the current block of transactions has received approval.
Is Solana A Millionaire Maker Investment?
Within just a couple of years since its launch, the SOL cryptocurrency has started making waves in the crypto market, thanks to its technical advancements. Solana's newer integrations and cutting-edge features are likely to drive the platform to be Ethereum's rival in the future.
SOL has already marked its presence in booming crypto sectors such as decentralized finance (DeFi) and non-fungible tokens (NFTs). Investing in Solana (SOL) is an excellent start to become a part of this growing ecosystem and earn sizable profits. The asset is indeed poised to become a millionaire-maker coin.
Identifying a cryptocurrency that is going to become the next top digital asset is easier said than done. The market can be volatile, and the price swings can be swift and extreme.
That said, investing in assets like SOL is likely to help investors diversify their portfolio and become a part of a next-gen crypto ecosystem.
Considering all its projects and institutional interest, Solana could be the next millionaire-maker coin in the crypto space, establishing a unique concept of decentralized finance and non-fungible tokens.
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