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28 September 2022

The Trends for Solana Blockchain Development in 2023

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Solana appeared in 2017. It was designed for decentralized and scalable applications. Compared to other blockchains, Solana provides high transaction speed and low fees. Currently, the project is one of the fastest. The blockchain is unique due to various applications and industries, including DeFi, GameFi, and NFTs. Solana is a decent competitor to Ethereum. 

Why is Solana so popular? Blockchain review 


The users can employ the blockchain for decentralized transactions, which is fundamental for the cryptocurrency world as we understand it. Numerous networks have considerable disadvantages compared to centralized platforms, i.e., transaction speed. 


Solana’s features

Solana is a solution that allows scaling cryptocurrency networks, making them significantly faster. The programmers have employed many intelligent technologies and mechanisms called Proof of History. 

A significant benefit is the fast-growing smart contracts and open source blockchain protocol. Solana is the first project to achieve such success within one project. The open source code allows the creation DApps in the ecosystem, providing security, financial benefits, and censorship resistance. 

Proof-of-History (PoH) is Solana’s basic concept. According to the consensus, the model employs a set of protocols for transactions to provide a bandwidth of above 60 thousand transactions per second. PoH solves the scaling and timing issues for specific consensus orders within the blockchain. 

Also, the blockchain uses the Proof-of-Stake mechanism to enhance the bandwidth and scaling. A pair of consensus models is not a new algorithm; it’s a blockchain synchronization model for Solana’s network. The project's target is to eliminate complex and time-consuming computing like the Ethereum blockchain has. Nodes manage to verify the transactions faster, thus reducing the load on the network and increasing the bandwidth. There are another eight innovations but for PoH and PoS. 


Core technical innovations that make Solana a highly productive blockchain

Tower BFT


Solana is different from other blockchains since it creates consensus between the nodes. Tower BFT provides a decentralized universal time source for the network via PoH. Furthermore, the innovation allows for consensus in the network despite possible attacks.

Gulf Stream 


Gulf Stream is a mempool-less transaction forwarding protocol. The system directs operations to nodes for verifications. The protocol helps to maximize the transaction verification speed and increase the bandwidth for simultaneous and parallel transactions. 

Sealevel 


Sealevel is a parallel smart contracts processing. The system optimizes the blockchain resources to process thousands of contracts simultaneously by employing validators’ cores. 

Solana’s ecosystem 


Solana is a permission-free productive project. The architecture completely meets all ‘right’ blockchain requirements:

Solana is an actively growing contact cryptocurrency and an effective blockchain that charges minimal transaction fees. In 2021, the project proved to be the most efficient in the cryptocurrency world. The network outperformed Cardano (ADA) and Polkadot (DOT) blockchains. 

Speed and commissions 


An essential advantage of Solana is the transaction speed; therefore, the blockchain is the leading Ethereum competitor among altcoins. ETH employs a Proof-of-Work consensus mechanism, so miners have to work on complex computing to verify a transaction. Solana verifies holding coins and utilizes a combined consensus that charges small fees compared to ETH. A regular fee is under 1 cent. 

Smart contracts and NFT


The development and popularity of smart contracts and the integration of decentralized applications are the factors that cause the overload in Ethereum’s network. Solana’s blockchain offers ETH similar possibilities, which helped it become an alternative on the market. Also, the blockchain actively gets influential in the non-fungible token industry. 

There is an NFT platform — Solanart, on Solana’s network. It provides any NFT buyers with high transaction processing speed and low fees. In 2023 and in the long run, the demand for smart contracts and NFTs can open a wide range of opportunities and ways to succeed for Solana.

The impact on the environment


Bitcoin and Ethereum are among the first networks on the market, and they both have a critical disadvantage in technology, namely a negative impact on the environment. The computing powers employed for mining and verifying operations in the PoW algorithm emit about 60 million tons of CO2. PoS and PoH in Solana are not energy-hungry; thus, the network and its native token can become an eco-substitute for the first cryptocurrencies. 

Solana’s team


The project’s main office is in San Francisco. The team created the network in 2017 and launched the test blockchain in 2018. The project founders are:

On 23.03.2020, token sales started, and everyone who bought SOL in the auction could receive up to 90% cashback for funds spent on the auction. 


Prime ecosystem’s team

In 2020, the Solana Foundation company was created to support efficient and quality ecosystem development. In 2020, they attracted many investors and users. Serum — a decentralized exchange on Solana appeared. In October 2020, they launched a cross-chain bridge with Ethereum’s network. The main advantage is the opportunity to transfer funds between various blockchains. 

For a lasting period, Anatoly Yakovenko has worked for Qualcomm —  a leader in mobile connection chips developments, including 5G chips for Apple. Parallel computing, processing massive volumes of information, and other engineering projects are Yakovenko’s experiences. Hence, the users can be sure of the efficiency of Solana's growth.

Furthermore, investors, including Sam Bankman-Fried, eagerly support the network.  And early in the development of blockchain, the potential as a platform to create a decentralized exchanger was noticed. Today, institutional investors, among them Osprey Funds, are seeing similar potential. The developers are making the Solana Trust, thereby opening up the possibility of investing in the traditional stock market in Solana.

SOL token


Any blockchain or project has a native token for paying transaction fees. SOL token fulfills this task; the token holders can be validators in the network. The project aims to maintain a deflationary model and regularly burns coins to manage inflation. 


SOL distribution

Like other blockchains, Solana allows the creators to employ the network and launch new applications and smart contracts. Blockchain already has:

The users also use the native token for votings within projects on this blockchain. Also, users can stake SOL which is considered an element of PoS consensus.

SOL as a cryptocurrency can outperform ETH, and the following factors are evidence:

  1. Solana is both fast and cost-effective. In 2022, a transaction on Ethereum cost 32.95 dollars, while in Solana, it was 0.00025 dollars per operation. This is the best solution for NFT collectors. 

  2. The ecosystem develops more actively than other blockchains. Indeed, there are numerous projects on Ethereum, yet they face scaling issues, high transaction fees, and poor bandwidth. Solana managed to solve these issues and, in one year, became one of the TOP-20 blockchains by market capitalization. 

  3. Solana is an excellent decentralized environment for NFT solutions, DeFi projects, and smart contracts. LLVM system and Rust language helped to achieve it. The developers can quickly transfer applications and protocols to this ecosystem from other blockchains. 

  4. Eco-friendliness is another advantage since PoS requires much less computing resources than PoW.

  5. Turbine protocol for splitting blocks into elements, segmenting data, and sending them to separate nodes significantly reduces the load on the network. 


The benefits above make the coin and the entire Solana project promising for 2023 providing yearly capitalization growth. 

Solana network issues


Indeed, the project is not perfect and has some drawbacks. The main issue is network failures that happen now and then. In February 2022, the user experienced a blockchain stop lasting two days. The main points were a combination of hacker attacks and increased network load. 

After the sixth considerable failure, the SOL price dramatically fell, the capitalization was reduced, and the prime competitor XRP (Ripple), beat SOL. 

Solana's prospects and advantages 


Many blockchains aim to solve scaling issues with the help of level 2 or sharding. Solana has in-built scaling at level 1 that can’t be achieved while processing transactions on different levels or shards. DeFI shows that compatibility is vital for transactions between different blockchains. These operations' cost, volume, and complexity will grow with time; therefore, they will require higher bandwidth and processing in under one second. Level 2 solutions or sharding will not provide it. Solana can process massive volumes of transactions on level 1 following institutional requirements to completion. The blockchain is compatible with other tier 1 networks.

The project supports USDT and USDC stablecoins that DeFi and other environments actively use.

It is hard not to notice the price correction of the blockchain’s native token, yet it will restore together with the whole cryptocurrency market. The experts emphasize that SOL’s exchange rate depends on the network’s security. The developers must convince the investors that there would be failures lasting several days as it was in 2022. Warrants against hacking are also essential. The audience will trust the network if the blockchain solves security and other issues. 


Some projects in Solana’s ecosystem

Cointelegraph published several factors that will drive the SOL’s price in 2023:

  1. The rapid development of derivative markets.

  2. Increased demand for the project from significant funds and investors.

  3. Stable development of the blockchain. 


Despite some drawbacks, Solana is a successful and promising project with significant potential in 2023. Any failures and security issues are currently being worked on and fixed since the developers in 2022 put a lot of effort into solving the problems. Furthermore, the cost of operations within the network is significantly lower than ETH, while the transaction speed is several folds higher. 

Ultra–productive applications


Numerous applications depend on minimal fees and high transaction speed; these solutions mainly employ centralized systems since decentralized networks might not be a reasonable idea for them. 

Solana’s blockchain allows for creating, launching, and developing such applications:

Blockchain already helps to implement it and can work for about 1 billion users in one system.

Solana provides tools more efficient tools compared to many networks for decentralized popular industries:

In the future, Solana will run scalable infrastructure services starting from banking cards and ending with stock trading. It is expected that blockchain’s bandwidth will outperform NASDAQ.

Best projects on Solana to keep an eye for


Solana is one of the best modern ecosystems with thousands of projects in DeFi, NFT, Web3, and other industries. The blockchain helps DApp developers to create cost-efficient applications. The network includes about 350 projects, yet the investors must pay attention to some trends in 2023. 


Solana’s significant growth in 2020 and connecting famous crypto projects to the ecosystem

DeFi


Decentralized finances target changing usual financial projects to more reliable and transparent projects that function without intermediaries. Employing decentralized networks help to achieve this aim. 

Mango Markets


Mango Markets is a trading platform that allows borrowing money and offers decentralized cross-trading and crediting with open source code. Users can utilize the functions to earn on transactions. 


Mango’s main page

According to developers, the platform provides a decentralized environment for traders and market makers. Mango Markets aims to substitute centralized exchanges in trading volume. Solana will help them to achieve minimum fees. 

Orca


Orca is an excellent decentralized exchange on Solana with massive trading volumes and a general capitalization of 520 million dollars. The platform appeared before Solana became considerably developed. 

Orca differs from other platforms since it has an appealing design focused on users’ needs. The developers questioned numerous people to create the interface and maintain existing functions and products to find issues and fix them. 

Serum


The serum is a DEX and derivative platform on Solana. It is remarkable to use a central order limit book at the blockchain level to compete with centralized exchanges regarding order execution speed and commission. The users appreciate the platform for its high transaction speed and low fees. FTX cryptocurrency exchange team and Alameda Research trading platform participated in developing Serum. 

Wallets


The ecosystem is a decentralized platform that allows access to famous exchanges:

Solana’s protocol is often employed for NFT DeFi, and staking; there are hardware wallets that allow managing cryptocurrency. Before starting treading in Solana’s network, it is recommended to consider several types of wallets. 

Phantom 


Phantom was one of the most successful projects within the blockchain in 2021. It is a new-generation multicurrency wallet. Solana is a payment method; still, it allows token exchange. 


Phantom’s friendly interface

The wallet supports NFTs and collectibles, providing additional benefits for users who can manage their assets via the application and trade it within the platform.

It is one of the best solutions in terms of security. The fees are 1 cent per operation. There is a mobile application and a browser extension for this product. Phantom also supports private keys on users’ behalf, allowing them to generate them. 

Solflare


Solflare is also a popular wallet in Solana’s system. The solution focuses on ease of use, storage, and operations with NFTs. The prime benefit is permanent and complete access to assets and possibilities to invest in audio and visual non-fungible tokens. The target audience is users seeking solutions for storing, staking, exchanging, and sending coins. 


Solflare’s main page

Stablecoins 


These are cryptocurrency assets pegged to a currency or product. Cryptocurrency is a highly volatile instrument; therefore, stablecoins are much better for everyday transactions. 

Tether (USDT)


USDT is one of the most popular stablecoins on the market; it has a large capitalization. Tether integrates with Solana’s blockchain, providing high transaction speed. After the complete integration, USDT will offer +50 000 TPS and 0.00001 dollar fees. Traders and investors use Tether to store funds in crypto without volatility. 

USDC (digital dollar)


Solana USDC was launched in 2021, and the best exchanges accepted it. USD Coin by Circle is the second stablecoin according to market capitalization and has initial integration with Solana that provided economic benefits for transactions and processing speed. USDC is the main element of the cryptocurrency market and capital. 

NFT


Non-fungible tokens are a unique blockchain product with ID codes and metadata. They are all unique and different from other assets. 


An NFT costing 1.1 million dollars

Solanart


Solanart is a complete public NFT platform in Solana’s ecosystem. The platform is easy to use and allows to connect SPL wallets to managed digital assets and collectibles. 

Solanart is a platform for the most renowned NFT collection, including Moonrock Capital, Aurory, and Degenerate Ape Academy.

Metaplex


Metaplex protocol helps to create and mint NFTs. It employs a standard format for wallets and applications. Artist and other creators can make their NFT showcases without complex technical components like building websites on dedicated platforms. Also, they pay minimum fees for creating tokens. 

Metaplex is an excellent substitute for the actual NFT ecosystem. Creators, holders, and validators can employ Solana’s open-source ecosystem.

Solsea


According to developers, Solsea is the first NFT market that allows token creators to set authorship licenses independently. Platform clients can track future NFT releases with the help of an in-built calendar. 

Solsea charges low fees and provides high transaction speed, just like other ecosystem projects. 

Games


Games on the blockchain are a new trend in the digital and cryptocurrency world. They often employ NFTs for game processes. Numerous avatars, maps, and items are non-fungible tokens there; hence, they are unique and owned by a single person, yet people can exchange them within the game and other platforms. 

Star Atlas


Star Atlas is a multiplayer blockchain game in the 2620-year setting. The gamers can select one of three fractions. The developers create a metaverse with an open economy. For this purpose, the developers launched Atlas cryptocurrency and Polis management tokens. The assets are necessary for rewarding players too. 


Unique economy components of Star Atlas

The user owns all assets earned within the game. The game is still in beta, yet people can already try the meta world. They might release the complete version in 2023. This can be a revolutionary blockchain game that will satisfy all expectations. 

Aurory 


Aurory is not a typical Play to earn game. Aurory is one of the most sold projects with an in-game market and Serum exchange support.


Aurory: a leading Web3 game studio on Solanas

A fantasy plot allows playing PVP or PVE. Any mode allows collecting NFT tokens and AURY that can later be traded on the market. 

Aurory succeeded in 2021 when they sold about 10000 Aurorian NFT symbols in a few seconds. The users want to use NFTs for 3D models in 2023 and the following years. 

Other popular projects 


Other exciting directions in the Solana metaverse could be helpful in 2023. The main ones are:

  1. Audius — is a decentralized platform with audio streaming capabilities under performers' control. The goal of the development is to give power back to users. Audius operates as a corporate music community in the hands of node operators, artists, and fans. They are the ones in charge of the network. Audius has implemented a social media style approach and allows anyone to post music to engage audiences and interact with them. It's a non-financial crypto app with over 5.3 million users in 2021. The work is done through a native AUDIO token.

  2. Arweave is file storage software. The goal is to create a perpetual digital archive. The collaboration between Arweave and Solana made it possible to use a decentralized network to permanently store ledgers and other information with a guarantee of retrieval at any period. The data has been held since 2020; the creators try to solve the problems of unauthorized access, providing a high class of protection at any period.

  3. Civic is a decentralized identity solution project that completed the ICO. It is currently working with the Solana blockchain. Civic is designed to make it easy for users to verify their identity with service providers, keeping control over personal and corporate information.

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