SolanaSOL
Solana Price (SOL)
0.003634 BTC2.62%
0.04765 ETH4.45%
A Quick Overview of our Solana Review:
Solana uses a Proof of History (PoH) mechanism which is an additional component in the PoS consensus employed by the project. PoH involves the process of timestamping transactions when they are included in a new block on the chain.
What is Solana?
Solana, unlike other cryptocurrency projects, is one that is different in that it focuses on a simple, yet devilish, element: time. It is a high-performance blockchain that supports smart contracts as well as a variety of decentralised applications (DApps). In addition, Solana uses a proof-of-stake mechanism and a low barrier to entry in addition to timestamped transactions which maximise efficiency.
Key Features and Takeaways of Solana
Solana has a different approach where blockchain technology is concerned, setting it apart from the competition. Solana has the following key features and takeaways:
Solana uses a Proof-of-Stake (PoS) consensus mechanism and timestamps transactions so that efficiency of the platform is maximised, allowing it to process between 50 to 65 000 transactions every second, with a maximum limit of more than 700 000 seconds per second.
As opposed to similar projects like Polkadot and Ethereum 2.0, Solana is a single-layer blockchain which does not delegate operations to any other attached chains.
Solana’s blockchain was designed with a long-term vision in mind and it consists of a team professional with experience in working with Qualcomm, Google, Apple, Microsoft, and Dropbox.
Solana is based on similar database technologies which is also used by Google and Microsoft, with its architecture inspired by Filecoin, which is a decentralised data storage crypto project.
Solana uses a Proof of History (PoH) mechanism which is an additional component in the PoS consensus employed by the project. PoH involves the process of timestamping transactions when they are included in a new block on the chain. There is a new block generated every 400 milliseconds, with the SHA256 has function used as reference for timestamps.
However, instead of working to solve hash functions, Solana uses the repetitive outputs of SHA256, or the timestamps, which results in a “clock tick” with each tick representing 400ms.
Solana’s native token is SOL, and it is burned to pay for fees on the network. In addition to this, SOL can be staked to become a blockchain node.
Of the total 500 million SOL, 36.2% was sold to private investors in four sales while 12.8% was allocated to the Solana team. 10.4% of the total supply was allocated to the Solana Foundation, and the remaining 39% has been allocated to the Solana community as validator node rewards.
How to buy Solana (SOL)
Step 1 – Register an account with Gate.io
Navigate to the official Gate.io website and select the option to “Sign Up” from the homepage.
Complete the online registration form by providing country/region, a selected username, email address, and user-selected password. Read and accept the User Agreement and Privacy and select “Next”.
Create a fund password and select “Create Account”. Complete the “I am not a robot” reCAPTCHA. Check your email inbox for the activation email and click on the link in the email. If the link does not work, you can copy and paste the URL into your browser.
Log into your account using your credentials and complete the reCAPTCHA.
Check your email again for the verification email that contains the 6-digit code and click on “Confirm”. Enter the code that you received into the blocks provided and select “Log In” to proceed.
Before you can use the platform to purchase Solana/SOL and other cryptocurrencies on Gate.io, you must complete the “Know Your Client” or KYC procedure to verify your identity and your proof of residence.
Click on “KYC Now” at the bottom of the webpage to start the process.
Select whether you are an individual or an organisation by selecting “Verify Now” under the relevant option.
Select your country from the dropdown list, enter your full name followed by confirmation thereof. Select your ID document type and provide your ID Number as shown on your official ID Document.
Click on the first image to upload a clear photo of the front of your ID document followed by a clear photo of the back of the document.
Next, write your Gate.io unique ID on a piece of paper and take a photo of yourself holding up your identity document (front) and the paper containing your unique ID.
Once you have done this, click on “Confirm and Submit”.
Next, you must enable the Timed One-Time Password (TOTP) to be able to log into your account. This can be done by clicking on “Set Now” at the bottom of the page.
On the new page that loads, select “Click here” to set up Two-factor Authentication.
Download Google Authenticator onto your mobile device by making use of any of the abovementioned methods.
Follow the steps indicated to add your Gate.io account by scanning the QR code or entering your unique key.
Enter the TOTP, your fund password, and the code sent to your email address and select “Enable Two-factor Authentication”. With this setup, you must use the Google Authenticator app to sign into your account every time.
Step 2 – Deposit funds
You must note that Gate.io is only a crypto-to-crypto exchange which means there is no fiat gateway. The only way through which funds can be added, is to transfer an existing crypto into your Gate.io wallet.
SOL can only be bought through Tether/USDT or Bitcoin/BTC while it can be traded with USD as a futures contract.
Navigate to the deposit/withdrawal section by hovering over your account and selecting the relevant option. Choose from the list of coins in which you can make a deposit and select “deposit” next to the appropriate coin.
You will be redirected to a page which generates a deposit address for the coin that you wish to deposit.
Copy this address, or scan the QR code, into the wallet where you are making a withdrawal from and depositing to Gate.io and wait for the relevant blockchain to confirm your transaction. Once the transaction has been completed and verified by the nodes on the chain, the coins will be sent to the Gate.io wallet and you can start trading SOL.
Step 3 – Explore your trading options
Gate.io offers a variety of ways through which cryptocurrencies can be obtained. Each of these can be explored individually depending on your trading needs and objectives.
To start trading SOL, select the option from the “Trade” Menu. Enter “SOL” into the search bar to see which trading options are available.
For spot trading, for instance and as an example, select SOL_USDT. Once you have selected, you will be directed to the exchange page which corresponds to the cryptocurrency pair SOL/USDT.
Here, you will see that you have the option to buy or sell SOL either as a limit order, grid trading, or as a time condition. The most common trading method is that of limit trading and thus it will be used for this guide.
Step 3 – Buy SOL through via Limit Order
To buy SOL and create a limit order for it, you can enter the amount of SOL you want to purchase, and the price you want to buy it at in USDT. This tool will tell you what the overall cost is in USDT, or any other chosen counter-currency, which will be deducted from your wallet once the order has been executed.
Step 4 – Sell SOL through via Limit Order
To sell SOL, find the panel under the chart and create a limit order for USDT according to your own preferences. Note that with a peg to USD, SOL that you exchange for USDT will hold the flat value that it has despite market conditions in the cryptocurrency market.
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