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Solana foundation hopes to raise $450 Million to Battle Ethereum Domination - TCR

source-logo  thecoinrepublic.com 09 June 2021 09:50, UTC
  • Help to end Ethereum monopoly of decentralized finance ecosystem
  • Solana process up to 50,000 transactions per second
  • Very low transaction charges attract many investors

Ethereum supremacy in the Decentralized Finance ecosystem is well known. However, many are challenging the Ethereum decentralized supremacy. Solana, the proof of stake, smart contracts-enabled currency, is eyeing to raise $450 million in its efforts to take on Ethereum.

Ending Ethereum monopoly of decentralized ecosystem

The Solana ecosystem is supported by the founder and CEO of derivatives exchange FTX, Sam Bankman-Fried. The decentralized ecosystem is hoping to Raise $450 Million in a funding round that was extended last March. The fund will help the decentralized ecosystem jostle for space in the Defi ecosystem largely monopolized by Ethereum.

Solana foundation to Raise $450 Million in Funding Round

The FTX-backed, proof-of-stake coin Solana started a funding drive scheduled to be closed in March but has since been extended. According to a report from Decrypt, the digital currency had first aimed for a smaller amount of money, but it found that big entities were keen to fund the project. In light of the new developments, the target and the time for its realization were increased beyond March’s closing date, which was initially scheduled.  

Funds will be used to attract developers towards Solana decentralized ecosystem

It is not clear how much money Solana was able to raise. However, the funds will attract builders to construct and bring their existing projects into the ecosystem. The project is created by a consortium of cryptocurrencies named “Ethereum killers,” The project tries to mimic this project’s functionalities while improving throughput and fees.

Process up to 50,000 transactions per second

Solana tries to upstage Ethereum by offering to process up to 50,000 transactions per second. Coupled with meagre transaction fees and the compatibility of the token platform with FTX exchange that allows deposits and withdrawals from this network makes it a desirable option. These inherent advantages inspired FTX CEO Sam Bankman-Fried to build the company’s Serum decentralized exchange with Solana blockchain instead of the Ethereum network.

Solana blockchain makes use of the most efficient technologies to enable quicker transaction speeds. It is a very secure platform which uses the Delegated-Proof-of-Stake (DPoS) consensus mechanism. It comparison with the PoS system it is much faster and takes just 2.34 seconds to produce a new block. This is many times faster than it compatriots and makes the blockchain very popular among the crypto community.  

‘Solana is not alone to take on the might of Ethereum. Another notable entity is Avalanche, which was launched last year and swiftly climbed the Ethereum killers ranks. Avalanche offers even more advantage to the users, including allowing users to issue subnets with higher throughput and faster finality. Cardano is another such platform that Ethereum founder Charles Hoskinson has created, and it has generated a lot of interest in the cryptocurrency community.

In a number of ways the DPoS blockchain and the PoS blockchain are similar. Developers can get either of the two positions on the blockchain while creating the native token SOL. The two positions are a validator, or a delegator. Validators process the transactions made on the blockchain while the delegator assigns the SOL the user hold to the validator of his choice earning rewards in the process.

Other blockchain profits from Ethereum scaling woes

Solana does away with the scalable problems which has besieged Ethereum. Ethereum decentralized ecosystem is too congested and is getting choked by numerous decentralized finance projects. Solana ecosystem has a number of tools at its disposal and concludes the transactions proportional to its bandwidth.

Ethereum’s loss is another’s gain, and chains are racing to topple Ethereum as it struggles with its scaling problems. Sharding the viable option for scalable woes will not be introduced before 2022, according to Ethereum founder Vitalik Buterin. It gives the other blockchains a big head start, and it needs to be seen how they utilize it.

Solana volumes up during last 24 hours

Solana is ranked 11 in the overall crypto market. It has a market cap of $11,780,595,814 while the Fully Diluted Market Cap is $21,271,919,008. In the last 24 hours trading Volume was $1,748,567,599. It has a Circulating Supply of 272,637,427.58 SOL.  Solana Price was $43.23 and the Price Change in last 24 hours was $7.2820 down 27%. In the last 24 hours the value peaked $43.08 and the low was $33.69.

thecoinrepublic.com