Solana has gained significant attention and generated a lot of buzz in recent months. The network has become a hub for several meme coins, with many claiming it to be a superior choice compared to Ethereum.
It seems that investors have regained confidence in the crypto market. Following a significant decline in crypto asset prices in 2022, they have experienced a remarkable surge over the past 15 months. Solana could potentially benefit greatly from this positive momentum.
Solana takes a different crypto turn
According to an X post, Solana developers have announced that a new software update is now being recommended for general use by mainnet validators. This update aims to address the congestion problem on the popular blockchain.
“The v1.17.31 release is now recommended for general use by MainnetBeta validators,” they said. “This release contains enhancements which will help alleviate the ongoing congestion on the Solana Network.”
The reasons are clear – Solana offers faster and more cost-effective solutions. When network usage is high, the cost of a transaction on Ethereum can soar to over $100. However, on Solana, you can usually complete the same swap for less than a cent.
However, it does have its fair share of challenges. According to one crypto analyst, the latest update (Version 1.17.31) is the first of many planned updates aimed at resolving network congestion that has been experienced in recent months. This update was rolled out on Monday, as mentioned in an X post.
Validators are entities that operate nodes or software to verify transactions and ensure the security of a blockchain network. These entities must consistently update their node to newer releases to address any potential issues that may occur while a network is operational.
The network has been facing congestion issues in recent months due to a surge in user activity and a high demand for its services, possibly triggered by the meme coin frenzy. The transactional volumes in March skyrocketed to $4 billion, a significant increase from the average daily figures of under $500 million in 2023.
The latest update, version 1.17.31, was released to address the issue of network congestion. Some of the items in the changelog include:
- Show staked vs. nonstaked packets sent down/throttled
- Quic: use smallvec to aggregate chunks, save 1 alloc per packet
- BankingStage Forwarding Filter
- Treat super low staked as unstaked in streamer QOS
- Tighten the minimal streams per 100ms for staked node
What to know before investing in Solana
Prior to making a hasty purchase of Solana, it is crucial to fully understand these three essential facts about the crypto. Solana also operates a proof-of-stake consensus mechanism, similar to Ethereum. Token owners play a crucial role in approving transactions and validating the blockchain. Solana also offers smart contract capabilities.
However, this innovative crypto boasts a distinctive feature called proof-of-history. This system revolutionizes the way time is recorded on the blockchain, leading to a more efficient process and improved speed. It’s worth noting the reason behind Solana’s ability to theoretically process 50,000 transactions per second (TPS).
Furthermore, Solana’s unique infrastructure, which prioritizes speed and affordability, has successfully introduced a valuable use case. Introduced in February 2022, Solana Pay has the potential to become a game-changer for this network.
In addition to that, it enables direct connections between consumers and merchants through the blockchain, facilitating transactions using either the native token, SOL, or a stablecoin. There is rapid settlement and minimal fees.
Investors should have a clear understanding of the volatile nature of the crypto industry before deciding to own cryptocurrencies. Price movements are often influenced by narratives, particularly in the short term. Expect ongoing volatility in the near future.
