5 Reasons why Solana might just be ‘The Next Big One’ in Crypto
Disclaimer: This article is not meant to be investment advice and is merely the opinion of this writer. If you are interested in crypto trading, you are expected to extensively learn more about crypto and how it works.
Cryptocurrency is here to stay folks. Due to its potential as a global instrument for payments or cross-border remittances, it has attracted more users with each passing year. Global estimates show there are currently about 300 million crypto users in the world, or equivalent to a 3.9% penetration.
It’s here and it shows no sign of slowing down. And the old adage that says “if you can’t beat them, join them” still rings true. This is why I wanted to talk about this new cryptocurrency, Solana (SOL) that’s been making waves worldwide in the past few months.
In the Philippines, Interest in Solana reached another level as PDAX, the leading homegrown crypto exchange in the country announced that Solana is finally available on the platform starting May 2022.
What is Solana and why do some of the leading voices in the crypto industry see it as potentially the next big thing in crypto?
Solana is a public blockchain platform with smart contract functionality. This cryptocurrency first appeared in March 2020 which was also the same time that the SOL’s first block was made. It was described by Joanna Ossinger, a Bloomberg journalist, to be a “long term rival” to Ethereum largely because of the lower associated costs as well as faster speeds when it comes to transactions.
What makes it a possible contender for the next “Big Thing” in cryptocurrency is the strong Solana protocol which was developed by Anatoly Yakovenko, called “proof of history”. Fun SOL Fact – proof-of-history is a sequence of computations that allows for the network to better track the ordering of events to make validating transactions much more time and energy-efficient than other blockchains like Bitcoin. . Simply put, they have a timestamp that can “synchronize time” across its entire global network, weaving through the thousands of transactions per second that need to be verified, without being affected by latency issues.
This unique protocol allows Solana to hit a total of 65,000 transactions per second (TPS), putting it at par with the speeds of credit card companies, plus to sweeten the deal, this also effectively results in low-cost fees and cheaper gas expense rates. It truly is the perfect jumping-on currency for Pinoys who want to dip their toes in the world of cryptocurrencies and blockchain technology.
Solana is showing strong potential to be one of the leading cryptocurrencies because of its high yield. It’s currently ranked ninth in the global coin rankings with a market capitalization of $17 billion as of May 2022.
It has been dubbed by many investors and investment firms as the “Ethereum Killer” because it has often shown that it can outperform its rival, Ethereum. Lately, it has been gaining in the NFT market due to its lower fees for trading and minting.
A high yield also means more flexibility with what you can do or spend on, something that a lot of Filipino crypto enthusiasts are looking for; not to mention the myriad of people who want to jump in on the action.
High Volume of DeFi Projects
Another basis that could make SOL the next “big thing” is the high volume of decentralized finance (DeFi) projects it carries along. DeFi is a concept in the crypto industry that eliminates the need for a middleman for financial transactions. As a Layer-1 blockchain, SOL takes this concept and pretty much rolls with it by offering lower fees that attract even more DeFi developers to build on Solana.
Critical Role in the growth of NFT
One of the uses of Solana in today’s setting is related to a hot topic these days, NFTs or Non-Fungible Tokens. Because of the transaction speed that SOL has in its arsenal, it has also become the go-to blockchain for NFTs and NFT trading.
The reason for this is that the majority of other blockchains can not handle the number of transactions that are needed for trading NFTs in real-time. This puts a lot of strain on the network and often results in very high transaction fees.
With Solana however, we see very fast transaction speeds that can handle a large number of transactions at once without any issues. This makes it the perfect blockchain for NFTs, as it can easily handle the load that comes with trading these tokens.
Not only is Solana fast, but it is also very affordable to use. This is another reason why it has become the go-to blockchain for NFTs. With other blockchains, you often have to pay very high fees just to make a single transaction. This can eat into your profits quite a bit and is not sustainable in the long run.
With Solana however, you can make as many transactions as you want without having to worry about fees.
Solana also has an environmental advantage over more established blockchains like Bitcoin and Ethereum which have become notorious for their high energy consumption due to their proof-of-work protocols that make use of “mining”. Mining involves the entire network engaged in difficult number-crunching operations for validating transactions, which in turn requires a lot of energy even for just one transaction.
Solana on the other hand, makes use of a proof-of-stake protocol that only requires a fraction of the energy cost of Bitcoin. In fact, a single Solana transaction only uses the energy equivalent of two Google searches, or 0.00004 percent of the energy requirement for a transaction on Bitcoin.
And the best thing about all this is that Solana and the rest of the new breed of cryptocurrencies are currently available with the PDAX mobile app. You can download the PDAX app absolutely free of charge on the Google Play Store, Huawei App Store and the Apple App Store! Download and install the app and you can already start trading with cryptos like SOL, SUSHI, XLM, and BNB. For more information about PDAX, visit our official website at https://pdax.ph or download our mobile app at http://bit.ly/PDAX_MobileAppDownload to start trading today!
How to Buy Solana on the PDAX Mobile App
- Funding your account
- If you’re already an existing PDAX user, sign in to your PDAX mobile app. If you still haven’t downloaded the app, you may do so here.
- Deposit PHP to your PDAX account.
- As soon as you see the PHP amount in your account, click the Trade icon at the bottom of your screen.
- Select the PHPT/PHP trading pair.*
- Enter the amount of PHPT you wish to convert. Alternatively, you may choose a percentage (25%, 50%, 75%, 100%), and the system will automatically calculate the PHPT amount for you. Then click Convert to proceed.
- Be sure to double-check your order details before tapping the Confirm button.
- Return to Wallet and click Recent Wallet Transactions to view your order’s status.
- Buying Solana on the PDAX mobile app
- Make sure you have enough PHPT balance.
- Tap the Trade icon at the bottom of your screen, then select SOL/PHPT.
- Enter the amount of PHPT you wish to trade for SOL. Alternatively, you may choose a percentage (25%, 50%, 75%, 100%), and the system will automatically calculate the PHPT amount for you.
- Tap the Convert button.
- A new window will appear asking you to confirm your order. A quotation will appear for 15 seconds before it automatically updates. Be sure to double-check each detail before clicking the slippage disclaimer box (“I understand that the amount indicated is only an estimate and might change upon placing an order.”)
- Click Confirm.
- Return to Trade and click the clock icon at the top right to view the status of your order.
*Currently, the PHPT trading pairs and their historical trading data are only available through the PDAX mobile app. You will not be able to view any PHPT-related transactions using the web app (trade.pdax.ph).