solana blockchain

This section describes the Solana blockchain and SOL cryptocurrencies.

Table of Contents

1. What is Solana Blockchain?

2. What are The Features of Solana Blockchain?

　2.1 Fast Processing Speed and Low Transaction Costs

　2.2 Being Layer 1 Blockchain

　2.3 Interoperable with Other Blockchains

3. Staking on Solana

4. SOLANA x Wormhole Bridge

　4.1 To The Network Connecting each Project

5. Introduction of recommended Solana Wallet

　5.1 Introducing The Ledger Wallet

6. Summary

1. What is Solana Blockchain? ( solana blockchain )

SOLANA is a blockchain network founded in 2017 with a focus on high-speed transaction processing and high throughput. For scalability issues plagued by layer 1 blockchains such as Bitcoin Ethereum and many other projects, Solana uses PoH (Proof of History), a unique way to order transactions, to speed things up. It is a feature that it is.

Using this technique, the Solana blockchain can process tens of thousands of transactions per second. Solana also has SOL, the network’s native cryptocurrency. This allows network users to use SOL to pay for transactions such as token generation, sending and receiving, and interacting with smart contracts.

Solana is an open source project that implements a new high performance unauthorized blockchain (as well as Bitcoin, Ethereum, etc.). The Solana Foundation is based in Geneva, Switzerland and maintains an open source project. Solana is allowed in the Proof of History (PoH) blockchain data structure.

Solana Official WebSite : https://solana.com/ja

2. What are The Features of Solana Blockchain? ( solana layer 1 )

The Solana Blockcahin has three main features.

2.1 Fast Processing Speed and Low Transaction Costs ( solana layer 1 )

Solana’s transaction processing speed and transaction costs are significantly better than many blockchains. For example, when compared with the major cryptocurrencies Bitcoin and Ethereum.

Comparison of Solana and other blockchains

Layer 1 Blockchain	Transaction Processing / Sec	Transaction Fee	Block Generation Speed
Solana	50,000	atout $0.00005	0.4 Sec
Bitcoin	7	about $15	600 Sec
Ethreum	15	about $15 to $20	300 Sec

2.2 Being Layer 1 Blockchain

Ethereum and others use the Layer 2 solution (transactions are executed on the overlay network (Layer 2) on the underlying main blockchain network (Layer 1)) as one of the solutions to the scalability problem. There may be cases.

Bitcoin and Ethereum have scalability issues, and trying to trade and record on Layer 1 alone would be too time consuming and costly. Therefore, we are trying to solve the scalability problem by executing some of the transactions at Layer 2.

However, with Solana, transaction processing speed and block generation speed are very fast and the cost is low, so processing can only be completed on the underlying main blockchain network (Layer 1).

2.3 Interoperable with Other Blockchains

Solana plans to work with other blockchains to build interoperability. First, the cross-chain bridge “Wormhole” project was recently announced, allowing (Sorana) SPL tokens to be exchanged for Ethereum ERC20.

This is a solution that enables interoperability between Solana and Ethereum and acts as a bridge between the Decentralized Finance (DeFi) ecosystem and the Solana ecosystem on Ethereum.

Wormhole Official WebSite : https://wormholenetwork.com/

3. Staking on Solana ( solana blockchain )

This is an overview of the Proof of Stake (PoS) design (that is, the protocol uses asset SOL to provide a secure consensus). Solana implements the following on the validator nodes in the cluster.

Validator node in Solana cluster

Proof of Stake Reward

Security Scheme

This has three purposes.

・Align validator incentives with larger cluster incentives through high-risk in-game skin deposits.

・Avoids “risk-free” fork voting issues by implementing slash rules aimed at facilitating fork convergence.

It provides a means of validator reward provided as a function of validator participation in the cluster. Solana’s ledger validation design is based on a stake-weighted select reader broadcast transaction of rotation of the PoH data structure to the validation node.

・Upon receiving the reader’s broadcast, these nodes have the opportunity to vote for the current state and PoH height by signing in the transaction to the PoH stream.

To become a Solana validator, you need to deposit / lock up part of the SOL by contract (eg, in Japan today, small software companies are looking for a lockup to a validator, of course, yourself. You can deposit / lock up your SOL to the validator by entering the Unix command in) .

1. Warm-up period: The SOL is deposited and the node is no longer accessible, but PoH transaction validation has not started. It is mainly an order for a few days to a few weeks.

2. Validation period: The minimum period during which the deposited SOL is inaccessible, at risk of slash (see slash rule below), and rewarded for validator participation. Probably a period of a few months to a year.

3. Cooldown period: The period after the “withdrawal” transaction has been sent. During this period, you will no longer be responsible for verification and will not have access to your funds. At the end of this period, you will be required to provide a cumulative reward along with a refund of your initial deposit.

4. SOLANA x Wormhole Bridge

Wormhole is a popular cross-chain messaging protocol that allows smart contracts on various blockchains to communicate with each other.

Wormhole Crosschain is a technology that connects across blockchains of different standards and specifications. Wormholes are 19 independent validators (Oracle called Guardian (bridging external data between off-chain and on-chain)) placed in the wormhole and whether the token is locked to the source blockchain etc. Validate to ensure the safety and integrity of cross-chain tools.

Wormhole has so far developed a token bridge feature between Solana (SOL) and Ethereum (ETH) and released a replacement tool. BSC (Binance Smart Chain) and Terra will also be bridged in the future.

Wormholes allow you to send NFT art between different chains

Wormhole states, “Users are now free to send DegenApeAcademy (Sorana NFT), BoredApeYC, CryptPunks (Ethereum NFT), etc.” So far, the emphasis has been on token (non-NFT) compatibility in DeFi (decentralized finance), and various projects have been involved in the development of token bridges, such as Ethereum, Solana, Avalanche (AVAX), etc.

It is a popular block of. With the spread of NFTs within the chain, the development of NFTs for operation in various chains will continue to increase.

With the newly released NFT Bridge, based on the principles of the original token bridge, users write (burn) Ethereum (ERC-721) or Solana-based NFTs (SPL assets) to replace tokens in the destination chain. Issuance (wrapped token wETH, wSOL). Going back in the opposite direction will write an alternate token.

4.1 To The Network Connecting each Project

Wormhole has 6 high value networks, 2 centralized exchanges, and 19 dexes. Anyone in the community can add a new network to the protocol.

Image・Data Source : https://wormholenetwork.com/

Wormhole Official WebSite : https://wormholenetwork.com/

5. Introduction of Recommended Solana Wallet ( solana blockchain )

Here, we will introduce the wallet that stores SOL. Software wallets that store SOL, such as Sollet, are also famous. In addition, various wallets for storing SOL are available. But the safest is a hardware wallet that is disconnected from the network. Here, we will introduce the most famous hard wallet, Leisure.

5.1 Introducing The Ledger Wallet

Ledger Nano X and Nano S support SOL tokens. Ledger is a smart hardware wallet for protecting, buying, exchanging and growing crypto assets. SOL is supported on all Ledger devices, including Nano X and Nano S. As a storage method, you can protect your important SOL by generating and storing the private key for Ledger. It is common to copy the private key on paper and put it in a special container.

6. Summary ( solana blockchain )

So far, we’ve talked about Solana. It turns out that Solana is a future-proof layer 1 blockchain, like Avax and others. Some NFT games, like Axie Infinity, use Ethereum sub-chains to trade Axie on wETH, but this also has a vulnerability issue.

Previously, hackers had stolen tens of billions of yen worth of wETH in Wormhole. However, NFT games on Solana are considered safe because they are exchanged using SOL (though I think they also use subchains, of course). I think this is the advantage of Solana, which handles transactions only at layer 1.

The price of the virtual currency SOL is about 15,000 yen as of April 1, 2022, but it can be expected to continue to rise. Solana’s NFT art is also booming, and in Southeast Asia, it is ranked in the trend by the hashtag #SolanaNFT on Twitter trends almost every day.

Also, since the validator is dispersed for SOL staking, it is thought that the damage of hacking can be suppressed like Axie Infinity. From this point of view, SOL can be said to be a hot stock in cryptocurrencies and staking. I am looking forward to seeing how far Solana, known as the Ethereum killer, will make a leap forward.

Reference URL: https://recruit.gmo.jp/engineer/jisedai/blog/solana_blockchain_and_token/

https://solana.com/wormhole

https://docs.wormholenetwork.com/wormhole/tutorial-nft-bridge

Solana NFT Marketplace : https://solsea.io