Thread by @tkdotventures

SOLANA: THE SLEEPING GIANT (P1)

Solana is one of the biggest blockchains in this crypto space. Recently, however, it seems that Solana has slowed down. In this article, we take a look back at Solana's progress and project its next stretch.

#Solana #Layer1

Whitepaper was published in 2017, soon after, Solana received interest from many big VCs. Especially, when metion Solana, many people will immediately think of Alameda Research and FTX, a huge backer and top tier exchange. For early investors, Solana is definitely a bargain.

However, another big VCs, Multicoin Capital, also invested in Solana from the early stages and holds to the later stages. The estimated profit of this deal can be up to 614000%. This is also one of the most successful investments of Multicoin Capital.

Solana is one of the efficient blockchains in this crypto space. Due to some good blockchain technology, Solana solves many problems such as scalability, TPS, gas fees, latency very well... compared to other blockchains (e.g. ERC20)

1. Solana is the first to use POH. One of the limitations of scalability is the time it takes to have a consensus on the order of transactions. POH creates a record to prove that an event was happening at a specific time. This allows transactions to be ordered automatically.

1a. However, POH still has its own limitation. The speed of Solana network depends on the leader node's hardware. The faster the hardware, the faster of the Solana network.

2. Solana uses a consensus mechanism called Tower BFT. This mechanism is designed to optimize the advantage of POH. Moreover, Sealevel is a parallel smart contracts run-time in Solana, designed to scale horizontally on GPUs and SSDs.

Compared to other blockchains, the use of POH and the strengths mentioned above make Solana superior in terms of fees and TPS. However, recently Solana's TVL has been somewhat declining because the development of other systems like Avalanche, Terra makes Solana less noticeable.

Here are some outstanding events of $SOL in 2021. Before that, the crypto market fell into winter and accumulated sideways, so there were not many significant events except funding rounds.