Solana is the world’s first web-scale blockchain. It supports smart contracts which means that developers can build decentralized applications (DApps), like a decentralized exchange, on top of Solana. Solana also markets itself as a cryptocurrency (SOL) that is decentralized, secure and scalable. Unlike other similar blockchains such as Ethereum and Polkadot, Solana adopts a single blockchain (layer 1) solution and does not need to delegate operations to other attached chains (layer 2).
Solana’s Team includes Mr. Anatoly Yakovenko, Co-Founder & CEO at Solana Labs, Mr. Greg Fitzgerald, Co-Founder & CTO at Solana Labs, Mr. Raj Gokal, Co-Founder and COO at Solana Labs and Mr. Eric Williams, Co-Founder & Chief Scientist at Solana Labs.
Solana generates revenue from mainly three sources, Staking, Validators and Transaction Fees.
Staking – Solana provides inflation rewards to delegators proportional to what they have staked in the SOL token in exchange for powering and supporting the network. Every 48 hours, staking income is automatically allocated and staked by the protocol. The current staking APY is at 12.89%.
Validators – Process transactions and run the network. These validators are chosen based on the amount of stake they hold in the network and hence, the biggest staked validators are likely to be chosen to input transactions on the blockchain. When Validators do this, they earn rewards. Validators, to increase their rewards, entice delegators (i.e. non-validator SOL token holders) to allocate tokens to them to stake on their behalf. Validators do this by offering lower commissions, which delegators must pay them in the form of a fee representing a percentage of the rewards earned.
Transaction Fees – When a transaction is sent through the network, it carries a fee for delegators known as a commission rate. Users can use the SOL token to pay for these simple token transactions and smart-contract executions on the network. These fees are meant to provide compensation to the validators for the CPU/GPU resources.
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