How to buy Solana (SOL) securely

Remember to buy tether, USDT or another cryptocurrency to be able to buy Solana, as the pair with euros or dollars is not yet available.

What is Solana?

Solana is an open source project that implements a new high-performance, permissionless blockchain. The Solana Foundation is based in Geneva, Switzerland, and maintains the open source project.

It is possible for a centralized database to process 710,000 transactions per second on a standard gigabit network if the transactions do not exceed, on average, 176 bytes. A centralized database can also replicate itself and maintain high availability without significantly compromising that transaction rate by using the distributed system technique known as Optimistic Concurrency Control [H.T.Kung, J.T.Robinson (1981)]. At Solana, we are showing that these same theoretical bounds apply equally to blockchain in an adversarial network.The key ingredient? Finding a way to share time when nodes cannot trust each other. Once nodes can trust time, suddenly, 40 years of research in distributed systems applies to blockchain!

Token Staking

Staking your SOL tokens on Solana is the best way to help secure the world’s highest performing blockchain network, and earn rewards for doing so!

Solana is a Proof-of-Stake (PoS) network with delegations, meaning that anyone holding SOL tokens can choose to delegate part of their SOL to one or more validators, who process transactions and run the network.

Delegation of participation is a risk-sharing and reward-sharing financial model that can provide returns to delegated token holders over a long period. This is achieved by aligning the financial incentives of token holders (delegators) and the validators they delegate to.

The more holdings a delegated validator has, the more often it will be chosen to write new transactions to the ledger. The more transactions the validator writes, the more rewards he and his delegators earn. Validators who configure their systems to be able to process more transactions at a time not only earn proportionately more rewards for doing so, but also keep the network running as fast and smoothly as possible.

Validators incur costs for operating and maintaining their systems, and this is passed on to delegates in the form of a fee charged as a percentage of the rewards earned. This fee is known as commission. Since validators earn more rewards the more game they are delegated, they may compete with each other to offer the lowest commission for their services in order to attract more delegated game.

Solana’s economy

The Solana cryptoeconomic system is designed to promote a healthy and self-sustaining long-term economy with incentives for participants aligned with the security and decentralization of the network. The main participants in this economy are validation clients. Their contributions to the network, state validation and necessary incentive mechanisms are discussed below.

The main channels for sending participants are called protocol-based rewards and transaction fees. Protocol-based rewards are generated from the inflationary emissions of an inflation program defined by the protocol. These rewards will constitute the total protocol-based rewards delivered to validation clients, the remainder coming from transaction fees. In the early days of the network, protocol-based rewards, deployed on the basis of a predefined issuance schedule, are likely to drive most of the participants’ incentives to participate in the network.

These protocol-based rewards are calculated on an epochal basis and distributed among the pool of delegated participations and active validators (validator fee). As explained below, the annual inflation rate is based on a predetermined disinflation schedule. This provides the network with supply predictability that promotes long-term economic stability and security.

Transaction fees are participant-to-participant transfers attached to network interactions as motivation and compensation for the inclusion and execution of a proposed transaction. In the following we discuss a mechanism for long-term economic stability and fork protection by partially burning each transaction fee.

First, an overview of the inflation design is presented. This section begins with the definition and clarification of terminology that is subsequently used in the discussion of inflation and related components. Next, Solana’s proposed Inflation Calendar, i.e., the specific parameters that uniquely parameterize the protocol-driven inflationary issue over time, is outlined. This is followed by a brief section on adjusted betting performance and how token dilution can influence betting behavior.