Do You Miss Bitcoin? Buy This Cryptocurrency Now

Despite all the volatility, Bitcoin (BTC -1.69%) a unique investment for those who buy and hold in the long term. Over the past five years Bitcoin has grown by 1120% and during that time it has become a form of digital gold.

If you miss Bitcoin, there are still cryptocurrencies that play a huge role in our future. But the future of blockchains may not be digital gold, but a tool that will disrupt everything from payment networks to the metaverse. and Solana (SALIG -4.90%) is a blockchain worth investing in today.

Image source: Getty Images.

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On the way fast

The Solana blockchain is designed to be a fast and inexpensive blockchain that enables innovations that are impossible to run on a blockchain like. Ethereum (ETH -3.63%) built with proof-of-work (soon to be proof-of-stake) mechanisms that speed up sales for security and stability. Given Solana’s relatively recent status and explosive growth over the past nine months, there have been growing pains such as outages and slow transactions, but there have also been impressive growth metrics.

  • Daily active portfolios: increased from 354,000 a year ago to 1.1 million at the start of June 2022.
  • Solana token transfers: averaging 3.5 million per day since early April 2022.
  • Daily active programs: increase from 67 a year ago to 1,068 on June 2, 2022.

You can see the explosion of daily active programs or applications deployed on the blockchain below.

Active Solana programs every day last year.

Image source: Solana Network Analytics.

What most caught Solana’s attention was the large collection of non-fungible tokens, or NFTs. Developers quickly created NFT projects and used them to fund everything from art to metaverse projects built by Solana. But there is a lot going on ahead of NFTs.

There are good decentralized finance apps like Raydium that allow users and projects to provide market liquidity to buyers and sellers for hundreds of tokens, which are often associated with NFT projects. Solana Pay is a payment layer using the Solana blockchain and a token like Solana or USDCwhich is a stable coin focused on the U.S. dollar, which means it is intended to maintain the value of a dollar over time.

There are many metaverse projects being built by Solana and this is the place to look for the future of metaverse technology. Solana’s fast and short transactions will create short value transactions possible, which opens up the possibility of selling more digital goods or services in the metaverse than can be used in a blockchain like Ethereum where transaction costs can be anywhere from a few dollars to hundreds of dollars just to buy something.

Growing pains for Solana

The biggest blows to Solana today are outages and bot attacks hitting the network. This makes the actual performance much slower than the theoretical 50,000 transactions per second, and the Solana is unusable at times. The development team fixed several bugs in validator updates over the months.

Even if these are very serious concerns, they are not unexpected. Ethereum experienced similar issues in its early existence, including a hack of 3.6 million Ethers in 2016 and forks when DoS attacks affected the blockchain. Solana raised thousands of transactions per second in record time, causing increasing pain. I believe these technical challenges will be resolved in a timely manner, but Solana is unlikely to execute tens of thousands of transactions per second in the near future, as others have expected.

The future of the blockchain

If you think blockchain technology can disrupt many industries and the most widely used blockchains can be fast and inexpensive, Solana is probably the winner. There are still many bugs that need to be fixed and performance issues to be fixed, but developers are taking Solana at a rapid pace and investors are pumping money into the ecosystem, making this a cryptocurrency bet. .

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