FxBrokerReviews.org – Currently emerging as one of the most popular blockchain networks, Solana ranks ninth in market cap among all crypto. Launched in March 2020, the newly created blockchain network resembles striking similarities to the popular blockchain Ethereum.
Solana is a public, open-source blockchain, developed by Anatoly Yakovenko with the purpose to host decentralized and scalable applications. Ethereum – Solana’s biggest rival earned its popularity owing to fast and timely transactions, but processed a significant amount of transaction fees. Therefore, users switched to Solana which addresses both – fast and cheap transactions.
As a result, several leading NFT investors and markets are shifting to the Solana blockchain and creating and selling NFTs through its crypto token SOL. if you are someone who is looking to Solana, we are here to guide you through everything you need to know. This guide covers an intro to the Solana blockchain, NFTs on Solana Blockchain, how to create and sell tokens, and more!
| Important takeaways:
What is Solana Blockchain?
Solana is a public and open-source blockchain that supports smart contracts to mint and trade NFTs. Smart contracts are essential in creating NFTs as they assign ownership and allow users to get access to various digital assets in the NFT marketplace.
The blockchain network was designed with the purpose to provide fast and low-cost transactions in one place. The network is one of the fastest-growing ecosystems in crypto and boasts a capacity of processing 65,000 transactions per second, which was then, only possible by VISA and Mastercard.
Solana supports its cryptocurrency, known as SOL in the marketplace. With a market cap of over $66 billion, SOL is considered to be the fifth-largest cryptocurrency by this measure.
The working of Solana Blockchain: Explained
The Solana blockchain runs on an algorithm developed as a combination of Proof-of-Stake (PoS) and Proof-of-History (PoH) mechanisms. These algorithms help to process the transactions and maintain accurate information across all its participants. Let us get a better understanding of both mechanisms to understand what blockchain does Solana use and whether is it useful for us?
Proof of stake (PoS)
In the Proof-of-Stake mechanism, cryptocurrency owners “stake,” their Solana coins to a validator. A validator is a computer that runs the blockchain software with its copy of the blockchain. These validators are similar to the miners in a proof-of-work blockchain, used by Ethereum where users stake an amount of cryptocurrency to be randomly chosen as a block validator.
The mechanism was developed to process faster and less resource-intensive transactions. Proof-of-stake focuses on maximizing speed and efficiency while lowering fees. It employs a network of “validators” who contribute or “stake” their crypto in exchange for getting new transactions validated, updating the blockchain, and even allowing them a chance to earn a reward. In this system, the network participant gets selected to add their transactions to the blockchain and earn some crypto in exchange.
Proof of History (PoH)
Proof of history mechanism focuses on proving that transactions are in the correct sequence and verifying the time duration between two events or transactions. It is used to make sure that transactions are in the right order and are found by the correct validator, in terms of the Solana Blockchain.
The validators are chosen before the transactions of each slot to save time. Each validator is responsible for continuing a count or tally of the passage of time, known as a proof-of-history sequence, and the next block of transactions for the slot they have been chosen for. This is possible because of a verifiable delay function (VDF). the selected validator is given exactly five seconds to work through the VDF and produce a block.
How to buy NFTs on Solana blockchain?
The process, to buy NFTs from a Solana blockchain is quite similar to that of any other blockchain like Ethereum. The only difference is that you need to connect to a Solana wallet and trade in SOL – Solana crypto. Major crypto wallets like Gemini, Coinbase, and more allow users to buy and sell SOL. Once you have the required funds in your wallet find a suitable marketplace that is powered by the Solana blockchain, explore for NFTs you want to purchase and initiate the buying process.
Follow the steps below to buy NFTs on Solana
- Get a Solana wallet: First, you need a crypto wallet to buy NFTs on the Solana blockchain. Wallets like Phantom, Trust wallet, and more, will help you get your required crypto.
- Purchase SOL Tokens: Head to crypto exchanges like Coinbase or NAGA, register yourself, add a payment method and Select Solana or SOL from the trade page to purchase the crypto. You will need to fill in a few details, and the funds will get transferred. Read our guide on how to buy crypto to know more.
- Pick a Marketplace: There are many Solana-based marketplaces that you can use for buying or selling NFTs with Solana. The most popular among them include, Solanart, Digital eyes and more.
Read below to find out the best Solana Marketplaces.
- Explore the marketplace : Search for NFTs you that you are interested in buying on the marketplace. Once you have found the one Click on the NFT and a pop-up will open displaying lick on buy now, check the total cost along with the gas fee and select buy!
Selling an NFT on the Solana Blockchain?
Before, you learn to sell NFT tokens, it is essential you know how to create a token on Solana Blockchain. Minting is practically, the first step that goes into the process of selling an NFT, unless you are renting an NFT. To learn how to make money with NFT, head to our blog.
Once, you have connected to a Solana wallet, it is time to decide what you want to mint. You can create any artwork on the solana blockchain, including, digital photos, paintiaings, collectables and more.
From there, you can either create your own metadata, hire a developer, or use a no-code software to create and mint your NFTs on the Solana blockchain. Now that you have successfully minted your NFT, you can proceed to list the token on the marketplace and sell it. In order to do so, all you need to do is upload your digital link or link of the token on your marketplace, fill in necessary details like its features, price, token details, and the option to buy or make an offer. Once it is done your NFT is ready for buyers to view and purchase!
Solana NFT Marketplaces
Before, Solana most of the popular NFT marketplaces were built on the Ethereum network. However, users preferences are now shifiting to Solana network, due to its low fees and faster transaction rate. This section covers some of the best Solana Marketplaces to trade your NFTs.
It is one of the best NFT Marketplaces overall. The platform allows users to create, sell as well buy Solana-based NFTs. The marketplace charges a 3% transaction fee for every successful NFT sale. It hosts some of the popular collections like Aurora, Degenerate Ape Academy, Solpunks, Galactic Gecko Space Garage, and a lot more.
Magic Eden is a suitable option for traders who do not wish to pay transaction fee to list their NFTs. The marketplace does not have any listing fee, however, they charge a transaction fee of 2%. It also encourages creators by allowing them to specify their royalties while selling their NFTs so that they get paid as soon as a sale is made. The only drawback the marketplace holds that they are currently only accepting a restricted number of projects.
The platform allows users to make, sell, and buy NFTs from the Solana blockchain. Some of the notable collections that the marketplace holds include Aurory, Degenerate Ape Academy, Frakt, Galactic Gecko Space Garage, and more.
Along with this Digital Eyes also offers investors the to see the upcoming NFT projects and NFT drops using the Mint Calendar. The platform charges 2.5 % of each successful NFT sale as a service fee. It supports wallets like Phantom, Sollet, Solflare, Solong, Slope, and MathWallet to transfer cryptocurrency.
Is Solana better than Ethereum?
Solana’s features like transaction speed and cost has drawn comparisons to Ethereum, the leading blockchain for decentralized applications (dApps). We have drawn a comparison between the two blockchain networks to determine which is best suited for you!
- Smart contracts: Solana and Ethereum both support smart contract capabilities, which play an important role in the process of minting non-fungible tokens (NFTs).
- Working Mechanism : Solana uses a combination of PoS as well as PoH mechanism to validate the transactions, which enable low and fast transaction fee. On the other hand Ethereum uses a proof-of-stake (PoS) consensus mechanism, where validators stake their cryptocurrency as collateral to earn rewards for assisting the blockchain.
- Speed: The most anticipated difference between the two blockchains is that of the speed of transactions. Solana can process as many as 50,000 TPS, and its average cost per transaction is $0.00025 whereas Ethereum can only support less than 15 TPS, with an average transaction fees of around $1.68.
- Market Cap : The market cap of Ethereum is quite high, considering it is the most popular blockchain. The network has a market cap of over $210 billion. On the other hand, Solana being relatively new has a low market cap than ETH, of $12 billion.
Should I invest in Solana : Is Solana a good Blockchain?
Though The Solana Blockchain, is new in the marketplace it is definitely a recommended one! The Solana blockchain is highly efficient and stable. The blockchain’s consensus mechanism offers offers low transaction fees at faster rates for users. These factors combine to give the coin potential as a good long-term investment in the NFT marketplace.
Furthermore, the blockchain also hosts some of the top marketplaces rated in 2022, like opensea, digital eyes and more. With more and more marketplaces shifting to Solana Blockchain, creators also mint some of the exclusive NFTs on the network.
If you are someone who is looking to mint NFTs at a lower gas fee than Ethereum, and at a fast transaction rate, then our forex broker reviews guide would consider Solana a good investment for you!
Are there any risks of Solana Blockchain?
The Solana Blockchain is considered to be a high risk, high reward blockchain network. However, the network witnessed a 17-hour outage in September, during which the network couldn’t process transactions. Solana developers blamed it on something called “resource exhaustion.
All in all always remember to only invest as much as you can afford to lose in cryptocurrencies due to their significant risks and volatility.
The Solana Blockchain, though recently developed has paved its way in the NFT marketplace. Investors are attracted by its technology and low transaction costs. More so, several new marketplaces have also entered into the Solana space like Opensea, Solanart and more.
If you are a beginner looking to switch to the Solana blockchain, then we would recommend to conduct a through research and for more information, keep updated with our blog.
Q1. Where can i buy Solana?
Ans : All the major crypto exchanges like Coinbase, NAGA and more allows you to buy SOL and trade in the NFT marketplace.
Q2. What blockchain does Solana use?
Ans : The crypto : SOL is the native token of the Solana Blockchain.
Q3. Should I invest in Solana Blockchain?
Ans : If you are looking for a blockchain with low transaction costs and fast transaction speed then, consider trading in the Solana Space.
Q4. What are the best marketplaces in the Solana Blockchain?
Ans : Popular marketplaces like Opensea, Solanaart, Digitaleyes and more are powered by the Solana Blockchain.