Solana Price Prediction: Will the Solana Cryptocurrency Reach $500 in 2022?

Solana (SOL) is a token powering the Solana network — a Layer 1 blockchain for dApp developers. Solana Foundation has existed since 2017, but the network itself was launched in 2020, with the mainnet beta going live in March 2021.

Solana aims to solve the blockchain trilemma, providing scalability, security and decentralization. To achieve this, Solana’s founders developed a unique consensus protocol called Proof-of-History (PoH), which synchronizes the network nodes and ensures the immutability of timestamps within the chain. It works much faster than other mechanisms serving similar purposes. Solana also employs Proof-of-Stake (PoS) protocol as an additional security measure, which together with the high speed of PoH effectively solves all three parts of the trilemma. Note that, unlike the more common Layer 2 solutions for the same problem like sharding or sidechains, Solana operates on an autonomous blockchain and is not dependent on other chains like Ethereum. All these technological innovations have enabled Solana to maintain very high transaction speeds and some of the lowest fees in crypto space after its mainnet launch (i.e. despite increasing usage).

Validators have to stake their Solana tokens (SOL) to secure the network, and they receive their rewards in the same currency. The tokens are also used as gas fees and in the network’s governance.