Advantages and disadvantages of Solana (SOL) [Analysis]

Solana is an open source project that is able to incorporate Decentralized Finance (DeFi). The protocol is oriented to facilitate the creation of new decentralized applications (DApp).


Advantages and Disadvantages of Solana (SOL)

Created by American engineer Anatoly Yakovenko, the project started in 2017, although it was in the first quarter of 2020, when the Solana Foundation definitively published it.

Currently Solana is one of the most popular blockchain networks. Being one of the cryptocurrencies with the highest market capitalization. The innovations that incorporates in its project as the Smarts Contracts and the facilitation for the creation of decentralized applications, makes SOL right now one of the most competitive currencies available, opting even to unseat Ethereum.

Advantages of Solana (SOL):

  • High number of transactions. Currently the number is 65,000 transactions per second.
  • The network implements Smart Contracts
  • New validation protocol Proof of History, similar to the Proof of Stake although this method prevents the same node from duplicating the new block, making the process faster.
  • To be a validator node you do not need a minimum amount. To increase the probability of being chosen by the algorithm we will have to possess of participation.

Disadvantages of Solana (SOL):

  • Solana does not have full credibility by the community. This is because it drags some problems in its system and therefore with vulnerabilities.
  • It tends to be an inflationary currency. Each year an amount set by the community itself is issued. Its initial inflation rate is 8% until it reaches 1.5% in about ten years.
  • Your rewards may be worth less, as they are paid with inflation due to the 2nd disadvantage.