Solana is a cryptocurrency with web-scale technology on a blockchain that provides decentralized smart contract applications.
The price of the majority of cryptocurrencies was observed falling in trading Wednesday (8/9/2021) morning Indonesian time, after the bitcoin law in El Salvador was officially used in the Latin American country.
Based on data from CoinMarketCap at 09:10 WIB, of the eight largest non-stablecoin cryptocurrencies, only digital coin Solana was able to survive in the green zone this morning.
Solana digital coin shot 1.63% to a price level of US$ 175.01/coin or equivalent to Rp 2,490,392/coin this morning (assuming today's exchange rate is Rp 14,230/US$).
While the rest were observed to sink. Bitcoin slipped 10.55% to a price level of US$ 46,997.56/coin or Rp 668,775,279/coin, ethereum plunged 10.94% to US$ 3,474.24/coin (Rp 49,438,435/coin), cardano collapsed 10.36% to US$ 2.52/coin (Rp 35,860/coin).
Furthermore, binance coin fell 15.87% to US$ 418.82/coin (Rp 5,959,809/koin), ripple collapsed 17.2% to US$ 1.13/coin (Rp 16,080/coin), Dogecoin collapsed 14, 3% to US$ 0.2607/coin (Rp 3,710/koin), and polka dots dropped 16.19% to US$ 28.61/coin (Rp 407,120/coin).
Bitcoin and other cryptocurrencies which previously had shot and touched records for two consecutive days, this morning immediately turned into the red zone, after the government of El Salvador bought bitcoin as much as 200 coins last Monday, ahead of the enactment of the Central American country's Bitcoin Act.
Under the law in force in the Central American region, bitcoin is now accepted as legal tender.
Meanwhile on Tuesday (7/9/2021) yesterday morning, El Salvador temporarily deactivated the government-run bitcoin digital wallet, Chivo.
This was done to increase the capacity of the server which could prevent new users from installing it, President Nayib Bukele announced on his Twitter at around 07:00 local time.
"Any data they are trying to enter at this time will give them an error, however this is a relatively easy problem, but cannot be easily fixed by currently connected systems." Bukele said in his tweet, quoted from CNBC International.
As part of the new law, companies will be required to accept bitcoins in goods and services transactions, although merchants who are technologically incapable of accepting bitcoins will be excluded.
The government of El Salvador has installed 200 bitcoin ATMs in its country. The local government also bought 400 bitcoins for about $20 million and loaded Chivo's wallet with $30 worth of bitcoins for Salvadorans who signed up.
Crypto advocates reportedly bought $30 worth of bitcoins to commemorate the passage of El Salvador's bitcoin law, known as "Bitcoin Day." But it seems a lot of good news has been counted over the past month.
“Despite the sluggish trend today, the market has been strengthening for the past six weeks without any significant pullbacks,” Kevin Kang, founder of crypto hedge fund BKCoin Capital, told CoinDesk.
What is Solana (SOL)
Solana is a cryptocurrency with web-scale technology on a blockchain that provides decentralized smart contract applications. The technology allows lightning transactions up to 70,000 transactions per second and a block time of less than 0.5 seconds.
Web-scale IT architecture refers to the computing environment that allows applications to be dissected into web services. Systems that claim to be web scale can handle rapid growth efficiently and don't have bottlenecks that need to be redesigned at critical times. Big internet companies like Google, Facebook, and Amazon use a web-scale architecture.
Solana is named after Solana Beach, California, a beach and surf spot about 30 minutes north of San Diego. The developer of the project, Anatoly Yakovenko has worked hard to perfect it.
The system currently supports 70,000 TPS (transactions per second) and a block time of 400 ms (less than half a second).
The performance is absolutely amazing, every 400ms, a new block is added to the blockchain. It is not surprising that Solana is called the fastest blockchain in the world.
Amazingly, all that without even sharding. Sharding is a method of splitting and storing a logical set of data in multiple databases.
By distributing data across multiple machines, a set of database systems can store larger data sets and handle additional requests. Sharding is required if the data set is too large to be stored in a single database.
Speed can be achieved by incorporating new protocols that interact and execute transactions in a complementary style.
Compare that to Bitcoin which only has 7 TPS or Ethereum which only has 15 TPS. Solana is also a single blockchain (layer 1) and does not delegate operations to other related chains (layer 2).
Mainnet Beta was launched in March 2020. However, the whitepaper was published in 2017.
The Solana Foundation was founded in April 2020. The Foundation now owns all intellectual property and rights owned by Solana Labs.
In the process, 167 million SOL tokens were transferred from Labs to the foundation, to promote the adoption of decentralized technology as a public good. A small number of SOL tokens will remain available to Solana Labs for financing operations.
