Below is a summary of the eventful journey of Solana, its birth, launch, the challenges and obstacles it had to overcome, and all the technological advancements that were made along the way. It also sheds light on the overall growth of the Solana ecosystem, not forgetting the massive opportunities and impact it aims to have in Africa.
Fueled by innovation and the urge to provide a more functional and stable solution to the problems legacy blockchain were facing, Qualcomm Engineer Anatoly Yakovenko set out with a few of his colleagues (Greg Fitzgerald and Stephen Akridge ) to provide a more stable and functionally malleable codebase that would one day become the blockchain we now know as Solana.
The Solana initiative was appealing and showed promise even at its initial stages. During the years of 2018 and 2019 prior to its launch, the founder and co-founders tasked themselves with securing funds for their promising new open-source blockchain network. With bold claims of revolutionizing the blockchain space, it was no surprise that the Solana initiative captured the minds of many investors and venture capital firms, among which was Multicoin Capital. This was just the start of its long line of success stories.
The Solana blockchain was officially launched on the 16th day of March 2020. At its launch, it wasn’t the blockchain giant it’s now known to be. At first, Solana could only handle basic functions like transferring assets and simple smart contracts. It did not originally have a way of rewarding the validators and node operators who helped secure and run the network through a process called staking.
In the years that followed, Solana progressed quite steadily. The developers kept working and making improvements, ensuring that it would be capable of handling the next wave of users that were bound to emerge, and as predicted, it happened. The year 2021 ushered in a surge in the crypto market, the preparations and advancements the developers had made prior to the surge made it easier for users to adapt. Its high throughput, low-cost transaction fees, and fast network made it not only stand out but also dominate the market.
Solana utilizes a combination of advanced technologies, including the Proof of History (PoH) and Proof of Stake (PoS) consensus mechanisms. This innovative approach allows Solana to deliver exceptional transaction speeds and scalability that surpasses many other blockchain networks. To have a better understanding of what Solana is truly capable of, here’s a list showcasing the average block validation time for some of the legacy blockchains.
| Blockchain | Coin | Block Validation Time |
|---|---|---|
| Bitcoin | BTC | 10 minutes |
| Ethereum | ETC | 12 seconds |
| Solana | SOL | 400-800 milliseconds |
| Binance Coin | BNB | 3 seconds |
| Cardona | ADA | 20 seconds |
The year 2021 proved to be a remarkable one for the Solana initiative, as the project began the year with its token trading at a meager price point below $3 and by the end of the year had skyrocketed to over $170.
Stats from: https://coinmarketcap.com/currencies/solana/
The journey of Solana has been one marked by numerous triumphs as well as formidable obstacles. With its number of users rapidly increasing, the network was frequently overburdened. This led the blockchain to suffer from lengthy outages. However, despite facing setbacks and network outages along the way, the developers have been consistent in implementing the necessary fixes and improvements. Through this process, the network has gradually become more stable and decentralized over time.
Solana proudly features thousands of independent validators contributing to its security and it also has a better Nakamoto Coefficient score relative to its rivals (Ethereum, Avalanche, and NEAR). The Nakamoto Coefficient represents the minimum number of entities that could collectively halt operations on a blockchain, making Solana's higher score a positive indicator of its resilience against potential attacks or shutdowns.
Another notable challenge the Solana blockchain faced was the collapse of the FTX cryptocurrency exchange. FTX, once the third-largest cryptocurrency exchange, experienced a sudden and catastrophic downfall in 2022. This shocking downfall sent shockwaves through the entire crypto industry. The sudden collapse of such a major player caused widespread distrust among the general public toward cryptocurrencies. Additionally, it brought about the collapse of other crypto services that had been doing business with FTX, and among them was Solana. Its collapse was an incredibly damaging phase for Solana, with many believing that that was the end of Solana. The price of the SOL token plummeted to as low as $8 and even some of the biggest projects and NFT collections decided to migrate away from the Solana blockchain. But despite the setbacks, Solana still prevailed.