Thread by @Cov_duk

#Solana 101: the incredibly innovative, lightning fast chain.

Here's your everything guide to #Solana, the a lightning fast, cheap af innovative L1.

A thread🧵👇

1. ETH has many limitations. It’s can only handle a few transactions per second and isn’t scalable.

The blockchain trilemma that blockchains face is that they can choose only 2 out of the 3: decentralization, security and scalability.

2. #ETH is great for secure and decentralization. For crypto to get bigger, scalability is key.

This is the next billion dollar question. This is why you see so many chains rushing to solve this.

#Solana is a super fast, cheap, scalable L1.

3. It’s radically different architecture enables this innovation.

Solana can handle 65,000 transactions per second and only costs around $0.01 per transaction. It’s also completely decentralized, with over 2240 nodes.

4. #Solana’s goal is “for a decentralized network of nodes to match the performance of a single node.” It’s so fast that it feels like using the internet.

$SOL achieves these insane results are due to its unique consensus system.

5. It uses a PoS mechanism plus a Proof of History system, a decentralized source of time.

Essentially, transactions on #Solana are verifiably ordered without all nodes needing to agree simultaneously. That’s what makes it so fast.

6. Additionally, $SOL can single shard. Most new chains enable a high number of tps through sharding.

Which means that they divide up the blockchain into smaller pieces or sidechains and tie them back to the main chain. However, $SOL does everything on one chain.

7. $SOL is incredibly innovative, completely changing up the architecture.

Sol is focused on onboarding the next billion users and were laser focused on delivering some of the fastest speeds. This is one of the reasons for their huge success.

8. Another key innovation is Proof of History. PoH creates a historical record that proves that an event has occurred at a specific moment in time.

9. Instead of waiting for other validators, validators can use the information encoded in the ledger itself to determine whether a transaction is valid or invalid.

Here’s a good vid explaining it further.

10. #Solana's team is very solid. Founder @aeyakovenko (heard the guy speak a few months ago, cool guy) team are very solid, this is validated by the innovative breakthroughs they’ve had and the magnitude of growth its had.

11. The Solana ecosystem is popping, with $6.64B in total value locked (TVL). Solana has done good job and attracting talent. They’ve funded projects, had hackathons and provided support to attract talent.

12. DeFi, NFTs, gaming all avenues of the #Solana ecosystem are sprawling and haven grown tremendously.

Projects like Star Atlas and Saber have had massive success. DeFi is particularly great on $Solana.

13. $SOL is the primary token. Holders can stake their $SOL or earn through Miner extractable value (MEV).

$SOL began 2021 at a modest price of $1.52 and has since surged by an insane 11,150%.

14. However, lately Solana has been having some troubles. It has lost 2/3 of its market cap, currently sitting at around $26B. Solana suffered 6 severe outages that lasted longer than 8 hours in January.

15. A blockchain of Solana’s magnitude going out for that long is bad news. This drove fear and reduced trust in Solana.

16. #Solana is def very innovative and has a lot of potential. It’s lightning fast and cheap af.

It has a sprawling ecosystem, with especially strong DeFi roots.

However, the recent outages are scary. Many got burnt and have completely lost faith in Solana.

17. That said, I do think that was not representative of #Solana’s potential. Now that the dump has happened and the hysteria is gone, Solana can build and continue to grow.

18. Accounts to follow for #Solana insights:
@packyM @ScottChipolina @aeyakovenko @Austin_Federa @irvinxyz @sandraaleow @OmniscientAsian @pencilflip @0xMert_ @nkumar23 @jito_labs @thedefiedge @PaikCapital @Wuki @ImGetlowe @SolDadDev @Solasher_ @JGxFazciste

RT would mean a lot!

19. Accounts to follow for #Solana insights:
@DrBluechip @goose_sol @Cosmos_NFTs @SparcFN @ScottGod_SOL @zBanksSOL @solana @richcousinsol @pumpmynfts @JimmyCerasoli @LegardeJ_ @DegenSenpaii @nbhsoflo @Crypto15mod1 @0xKNFT @DangerDaveBTC @jonjonchitla

RT would mean a lot!

20. More solid #Solana accounts:
@cuatro3s @offwhitewalker @zoneFi_ @FomoK1ng @A_WIICE @jarxiao @KemonomichiNL @MushieGunter @Ayylonzo @ScorpioArise @angry__pacifist @astralsonx

RT would mean a lo!

21. Hope this was insightful. I write 101s and breakdowns regularly, follow to keep up.

Here are some of my past 101s:

https://twitter.com/Cov_duk/status/1500714387417436168