The price of the Solana (SOL) cryptocurrency has hit an impressive rally this year, far behind other digital currencies, as the innovative blockchain technology it relies on, continues to attract interest.
The digital currency climbed to a record high of $214 on Wednesday night, marking an increase of more than 13.000%, compared to its price on January 1st, 2021, when its price was around $1.61.
The cryptocurrency fell slightly to $192 at the time of writing, but has continued to record gains of more than 11.800% since the beginning of the year.
Solana, whose innovative technology has attracted a lot of investment interest, claims to have created the fastest blockchain network in the world.
According to Solana’s white paper, its network can theoretically process 710.000 transactions per second, using a 1 gigabit network connection, per second.
Anatoly Yakovenko, founder and CEO of Solana, provides a more specific example of the bandwidth of his company’s blockchain network in a post on the company’s blog.
“In the current iterations of Solana Testnet, a network of 200 distinct nodes supports continuous processing of more than 50.000 transactions per second when running with a GPU,” he commented. “Achieving this requires the implementation of several optimisations and new technologies, while resulting in a significant improvement in network capacity that marks the transition to a new phase of blockchain development,” he added.
Solana uses proof-of-history, which “creates a history file that proves that a transaction took place at a specific time“. In addition to this promising technology that can offer high trading capacity, Solana has other cards up its sleeve. According to the website, the average transaction fee is $0.00025, significantly lower than the average transaction cost on the Ethereum network at the time of writing.
Solana Labs, the company behind the network’s software, raised more than $300 million during a round of funding led by major companies such as Andreessen Horowitz and Polychain Capital.