Blog Borrowing Solana token (SOL) is growing fast, and even has crypto projects jumping from Ethereum

Solana token (SOL) is growing fast, and even has crypto projects jumping from Ethereum

date October 5, 2020 time 4 min read 430 views

Solana is the world’s first web-scale blockchain and is supported by some of the leading cryptocurrency platforms like Serum, FTX, Terra, and Chainlink. Discover everything you need to know about the Solana token including the Solana coin price and where to get and where to store Solana coin.

In March of 2020, the price of Solana coin(SOL) shot up more than 600% in the wake of the rising DeFi industry and has continued to grow.

SOL is the native token of the Solana blockchain. It was created and sold in June of 2018 and has been a rising start in the industry ever since.

The Solana platform has support from multiple major players in cryptocurrency including Serum, FTX, and Terra. Notable investors include Multicoin Capital, Foundation Capital, Distributed Global, and CMCC.

Here is everything you need to know about Solana and why the Solana token (SOL) is one to add to your watchlist.

Solana Coin review
Solana token is one of the hottest cryptos of 2020 (source: coinlist.co)

The chain behind Solana token

To understand the coin, you must first understand the chain.

Solana is the world’s first web-scale blockchain taking on the challenge of scaling blockchain for global adoption.

Here’s what that means in English:

The most important feature and the backbone of Solana is its Proof of History (POH) function. 

Proof of history is one of many new solutions to slow transaction speeds on the blockchain. For example, Bitcoin, the premier cryptocurrency can only guarantee up to 7 transactions per second. When you compare this with the 1,700 transactions per second VISA typically handles, you can see how crypto still is flagging behind traditional finance.

One of the most difficult problems in blockchain networks is agreements on time. Everyone around the world has slightly different timing on their computer clocks. This can be a big problem when trying to run a global network requiring time-sensitive consensus.  a decentralized clock is an essential feature for a blockchain to run effectively.

Solana blockchain
The Solana blockchain operates similarly to the Ethereum blockchain (source: needpix.com)

Solana’s Proof of History feature allows you to create a historical record proving an event happened at a specific moment in time. Every node on the chain has a complete, time-stamped copy of every transaction that has previously happened. This prevents time-based disagreements on the blockchain

Because of the PoH features, the Solana blockchain currently supports more than 65K transactions per second. Like the popular Ethereum blockchain, it supports smart contracts and onchain ecosystems. In December of 2020, KIN blockchain announced that they were migrating their entire project to the Solana chain from Ethereum in what many consider the largest migration in blockchain history.

So what is the purpose of Solana token (SOL)?

SOL is the native token of the Solana blockchain.

It is a Proof of Stake Token that rewards users for maintaining the chain and penalizes them for acting maliciously.  

Staking is the process of actively participating in transaction validation. When users stake their tokens, they earn interest (currently around 10% APY) when their node correctly validates transactions. If they attempt to use their node to falsify information on the chain, then their staked SOL is forfeited.

In the future, SOL will likely be used as collateral for P2P loans on the Solana chain in the same way ETH is used as collateral for the MakerDAO coin DAI.

You will need to get a crypto wallet specifically designed for SOL to store Solana tokens
You will need to get a crypto wallet specifically designed for SOL to store Solana tokens (source: pixabay.com)

Where to get Solana coin

Currently, you can get SOL on most broker exchanges like Coinbase. You can also trade Solana pairs on the following platforms:

  • Coincodex
  • Crypto.com – not available for residents of the U.S.
  • Binance
  • Bithumb Global
  • MXC
  • FTX
  • BitMax

Where to store Solana coin

Since SOL is its own blockchain, if you want to store your SOL outside of exchange wallets you’ll need to download a blockchain-specific wallet. Some of these include:

  • SolFlare
  • Sollet
  • MathWallet (currently desktop only)
  • Trust Wallet
  • Coin98
  • SOL hardware/paper wallets

Want to get in on SOL token

Get an SOL loan at the lowest prices on the market with MyConstant Crypto-Credit 

You can automatically buy SOL with a stablecoin loan on MyConstant. When you borrow in SOL, we automatically source the best prices from all the major exchanges for you so you always know you’re getting a good rate.

When you withdraw in SOL with Crypto Credit on MyConstant, you also get the following benefits:

  • You set the rate and terms
  • Rates starting as low as 6% APR
  • Your collateral is held by a secure third party
  • Early repayment options for lower rates
  • 24/7 customer service
  • Low matching fees

We also accept SOL tokens as collateral for P2P loans on our platform. Unlock the value of your SOL without divesting with flexible terms and some of the lowest rates in the industry.

Get in on one of the hottest trends in DeFi and unlock a world of investment options while you’re at it. Sign up for a free account today and see what we’re all about.

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