Solana’s third-generation blockchain architecture is designed to facilitate smart contracts and decentralized application (DApp) creation. The project supports an array of decentralized finance (DeFi) platforms as well as nonfungible token (NFT) marketplaces. The central component of the Solana protocol is the proof of history, a sequence of calculations that provides a digital record confirming that an event has occurred on the network at any point in time. It can be presented as a cryptographic clock that gives a timestamp to every transaction on the network. Solana has received a lot of accolades for its speed and performance and has even been cited as a legitimate competitor of crypto industry leaders such as Ethereum. On Solana, transactions are extremely affordable and take only a few seconds to complete. This is in contrast to Ethereum, the world’s largest blockchain for smart contracts, where transactions can cost up to $100 and take several minutes to complete. Developers can create disruptive products due to low development costs.
In terms of processing speed, Solana is able to challenge the dominant smart contract platform, as it is supposedly capable of reaching a speed of over 50,000 TPS. Solana uses different consensus algorithms to avoid slow transaction confirmation. This feature makes Solana one of the fastest blockchains in the industry to compete with other industries outside of the crypto space. Compared to this enormous number, the current low scalable Ethereum proof-of-work model can only handle 15 TPS. Thus, Solana is thousands of times faster than Ethereum.
Recently, Solana has quickly climbed the ranks when it comes to decentralized applications (dApps) and non-fungible tokens (NFTs). In just a year, projects on the network grew from 70 to more than 5,100 and Solana’s growth is far from over as the blockchain recently announced a new feature that may be very significant, it’s called “Solana Pay”, which is a digital-payment platform for merchants and their customers.The idea is users can pay with any currency — including U.S. dollars where transactions reach completion immediately, and costs are a fraction of a cent.
So if Solana can sustain this enormous growth momentum it may deliver multibagger returns as our Elliott Wave pattern on Solana is showing a confluence of bullish signals that predict an explosive move is on its way. On-chain volume backs up this claim and technical indicators add further weight behind the bullish thesis.