Article modified on Oct 18, 2023:
Offering fast transaction processes without sacrificing decentralization? It is what Solana provides to its users.
Launched in 2017, Solana is an open-source blockchain built by Solana Labs and is currently run by the Solana Foundation. Its main goal is to host dApps in the web3 ecosystem.
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SOL to PHP
Solana Guide 101
According to the online publication Investopedia, Solana is much faster in terms of the number of transactions it can process and has significantly lower transaction fees than rival blockchains like Ethereum.
It is mainly because of Solana’s proof-of-history (PoH) consensus mechanism. This mechanism was introduced by Solana Co-Founder Anatoly Yakovenko, which he described as a technique for keeping time between computers that do not trust one another.
“Anatoly watched as blockchain systems without clocks, such as Bitcoin and Ethereum, struggled to scale beyond 15 transactions per second worldwide when centralized payment systems such as Visa required peaks of 65,000 tps. Without a clock, it was clear they’d never graduate to being the global payment system or global supercomputer most had dreamed them to be,” Solana wrote.
Because of the PoH mechanism, Solana can process up to 50,000 transactions per second (TPS), which is much faster than Ethereum Network’s 15 TPS or Bitcoin Blockchain’s 4.6 TPS.
But take note that Solana is still using the Proof-of-Stake (PoS) consensus mechanism; the founders just upgraded the PoS by implementing PoH at the same time. This is the reason why users can stake SOL, the blockchain’s native token, so they can help secure and verify Solana.
Why Solana? Why SOL?
SOL is both a native and a governance token of the Solana Network, which means that it is used to pay for transactions on the network, as well as for staking and voting on its future upgrades.
Solana lets developers create and run dApps that need high throughput, low latency, and low cost. These developers can then adopt SOL to be their dApp’s utility token—for transactions, in-app payments, and fees.
Some examples of dApps built on Solana are decentralized exchange Raydium, stablecoin and wrapped token exchange Saber, mapping application Maps.me, and music streaming platform Audius.
And because the network offers fast transactions with low fees, which are about $0.00025 per transaction, more users can use SOL to transact on Solana without worrying for high gas fees.
Moreover, Solana also has its own standard for tokenization, the SPL Token, similar to Ethereum’s ERC-20 standard. This means that Solana supports the creation and transfer of tokens that represent any asset on the blockchain.
SPL Token allows for fast and cheap transactions of tokens on Solana, as well as interoperability with other blockchains through bridges.
These use cases are undeniably the reasons why SOL is in demand. Dive deep into the fastest growing blockchain ecosystem. Here’s your complete guide to buying Solana (SOL) in the Philippines. Start your crypto journey with BitPinas.
Top Platforms to Buy Solana in the Philippines
As of this writing, Central Bank-registered exchanges PDAX, Maya, and GCash’s GCrypto support SOL to its users.
Other wallets, such as MathWallet, Atomic Wallet, Phantom Wallet, Exodus, and Solflare are also some of the ideal wallets for dApps, staking, and multi-platform use for beginners, as curated by Investopedia.
Step 1: Verify the account by submitting the needed requirements—normally, a valid ID, an email address, mobile number and selfie verification.
Step 2: Choose the SOL trading pair, it could be SOL/USDT, SOL/USD, SOL/PHP or others.
Step 3: Buy USDT by typing the desired amount.
Step 4: Check the crypto wallet of the exchange, select the transfer or send option, and type in the wallet address of the receiver. Make sure that the wallet is compatible with SOL.
Step 5: Check if the transaction is complete. Usually, the amount has already been loaded to the wallet.
Lastly, it should be noted that the companies behind SOL are registered in the U.S. only and are not in the Philippines. However, it trading, staking, and buying SOL are not illegal in the country.
This article is published on BitPinas: Solana Guide Philippines | Top Projects and Usecases
- Before investing in any cryptocurrency, it is essential that you carry out your own due diligence and seek appropriate professional advice about your specific position before making any financial decisions.
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Original Article follows (may contain outdated information)
Solana is a layer-1 blockchain that runs on a combination of proof-of-stake (PoS) and proof-of-history (PoH) models. This combination allows Solana to conduct 50,000 transactions per second (tps) with an average cost of $0.00025 per transaction and a sub-second finality, meaning it takes less than 1 second for transactions to become irreversible.
To put this into perspective, Ethereum can only do 15 tps with gas fees reaching up to $30-$120 on average. Moreover, it takes a minimum of 7 confirmations to become valid, which takes roughly 2 minutes if the chain isn’t congested.
Solana was founded in 2017 to solve the current problems faced by large blockchains, especially in the areas of speed, affordability, and scalability. It is currently managed by the Geneva-based Solana Foundation.
Top Projects in the Solana Ecosystem
Serum is a DEX made to bring down the cost and increase the speed of permissionless token swaps.
Raydium was built to be the automated market maker (AMM) and liquidity provider for Serum. It also functions as a gateway for projects interested in tapping the Solana and Serum platforms.
- Star Atlas
Star Atlas is a space-themed, strategy metaverse game set in the distant future that uses Unreal Engine 5’s Nanite, giving it breathtaking graphics that separates it from other blockchain games of the same category.
The Render Network is a network built to harness the power of GPUs and create a decentralized economy to render decentralized games, metaverses, and other digital creations.
How Does Solana Actually Work?
Solana uses the PoS consensus mechanism, combined with a mechanism developed by its creator, Anatoly Yakovenko, called PoH. But to appreciate the efficiency of these two systems, we must compare them with other consensus mechanisms like proof-of-work (PoW), which is currently being used in Bitcoin and Ethereum.
PoW makes a blockchain platform more secure and decentralized by creating blocks, which can only be made by solving complex mathematical programs. Unfortunately, this model consumes so much electricity and has limited on-chain scalability.
PoS solves the issues of excessive power usage and network congestion by eliminating the reliance on computing power and replace it with staking power. In other words, mining rewards in PoS are proportional to the number of coins staked as opposed to the hash rate generated.
Solana introduced PoH to further boost the speed of its network by creating timestamps for each transaction, which immediately verifies clock time. Each transaction’s clock time can be verified without waiting for other nodes to agree, significantly speeding up the process of the whole network.
What Are The Uses of SOL?
SOL is primarily used to fuel the Solana ecosystem, where any transaction conducted on-chain requires a small amount of SOL to be paid. SOL can also be used to stake as part of its PoS consensus mechanism.
Why Are Crypto Projects Utilizing SOL Blockchain?
Solana’s incredible 50,000 tps and $0.00025 cost per transaction allows decentralized applications to leverage the blockchain’s speed and affordability, which helps them serve their users at their full, unhindered capacity, unlike in ETH where they usually face bottlenecks. This is especially important when running applications that require high tps like games and metaverses.
Composability is an attribute of blockchains that allows different protocols with various use cases, to be interoperable, unlocking new opportunities. DeFi activities, for instance, rely on composable money legos, the combination of different protocols like Aave, Yearn, Curve, etc to offer users the highest yields possible.
SOL Use Cases For The Crypto Holder
SOL can be used for staking to earn passive income by simply transferring tokens on a wallet that supports staking, creating a stake account, choosing a validator, and delegating the stake.
SOL can be used to purchase or mint NFTs on Solana marketplaces like Solanart, DigitalEyes, Solsea, Metaplex, Magic Eden and many more.
SOL tokens can be utilized to create passive income from DeFi transactions on Solana-based platforms like Serum, Sunny Aggregator, Raydium, Mango Markets, and many more.
Solana – SOL Wallets
List of Solana Web Wallets
How to Buy SOL in the Philippines?
You can purchase SOL from Binance through P2P. This is the simplest out all the options right now. Here are the steps:
- Log in or register to Binance
- Go to its P2P page
- Find a seller of USDT for your PHP
- Transfer USDT from Binance P2P to Binance Spot
- Find SOL/USDT Pair
Here is our step-by-step guide to buy crypto using Binance P2P: How to Use Binance P2P to Buy Bitcoin, USDT in the Philippines
Things to Consider About SOL
Solana has solved two of the major problems faced by Ethereum: the slow speed and high costs of on-chain transactions. Moreover, its high composability has also made it more appealing for DeFi projects. Many crypto proponents have sworn by the mind-blowing developer talent building in the Solana ecosystem. However, note that many critics have also questioned Solana’s decentralization, considering that the blockchain was allegedly shut down due to network overload last September 14.
This article is published on BitPinas: Solana Guide and Usecases | How to Buy SOL in the Philippines