Solana is a highly functioning open-source project that builds a new, permissionless, high-speed layer-1 blockchain.
Anatoly Yakovenko, a former Qualcomm executive, founded it in 2017. Solana aspires to outperform popular blockchains in terms of throughput while keeping prices low.
Solana employs a revolutionary hybrid consensus model that combines a unique proof-of-history (PoH) algorithm with a lightning-fast synchronization engine, a kind of proof-of-stake (PoS).
As a result, the Solana network may theoretically perform over 710,000 transactions per second (TPS) without requiring scaling solutions.
Solana’s third-generation blockchain architecture aims to make smart contracts and decentralized application (DApp) development easier. The project supports a variety of decentralized finance (Defi) systems and non-fungible token (NFT) marketplaces.
What makes Solana unique?
Solana’s ambitious design seeks to overcome the blockchain trilemma. A notion introduced by Ethereum developer Vitalik Buterin, in a novel manner. This trilemma explains three primary issues that blockchain developers confront while constructing: decentralization, security, and scalability.
It is often assumed that blockchains are designed so that developers must compromise one of the three benefits to supply the other two simultaneously.
The Solana blockchain platform has suggested a hybrid consensus process that sacrifices decentralization. Solana is a one-of-a-kind initiative in the blockchain market due to its novel blend of PoS and PoH.
Solana’s architecture addresses this issue by selecting one leader node based on the PoS mechanism that sequences messages between nodes. As a result, the Solana network benefits by lowering the burden, leading to greater throughput even without a centralized and precise time source.
Solana’s primary consensus mechanism is named after this history of transactions: PoH, a notion that enables better protocol scalability, increasing usability.
How does Solana work?
The Solana protocol’s central component is proof-of-history. A series of calculations give a digital record that certifies that an event occurred on the network at any time.
It may be provided as a cryptographic clock that offers a timestamp to every network transaction and a data structure that is a simple addition to it.
Solana employs it to achieve an agreement. The Tower BFT maintains the network safe and operational and serves as an extra tool for transaction validation.
Furthermore, PoH may be seen as a high-frequency Verifiable Delay Function (VDF), a triple function (setup, evaluation, and verification) that produces distinct and dependable output.
VDF preserves network order by demonstrating that block creators have waited long enough for the network to go forward.
Magic Eden Raises $130M at $1.6B Valuation
This past June, Magic Eden, one of the most widely used NFT markets on the Solana blockchain, raised $130 million in a Series B financing that values the enterprise at $1.6 billion.
According to the official release, funding was provided by Electric Capital, Greylock Partners, Paradigm, Sequoia Capital, and Lightspeed Venture Partners.
In addition, it will be utilized to enroll new employees, prioritize multi-chain possibilities, and improve user experience via different trading and analytics tools.
More than 250 projects are already available in Magic Eden’s first NFT marketplace, Launchpad. Its secondary market, on the other hand, features approximately 7000 different collections.
Additionally, Magic Eden provides “marketing support, operational execution, and ultimate customization” for new non-fungible token (NFT) collections that are approaching the primary market.
What does Magic Eden’s CEO have to say?
NFTs, according to Magic Eden CEO Jack Lu, is the most acceptable approach to win over a large number of individuals. His ultimate goal is to teach them about cryptocurrency and blockchain technologies. He concluded by saying:
“NFTs are exciting, social and cultural experiences that bring connectivity to the world. We’ve made the conscious decision to support both our creators and users through this tremendous era of growth for both the company and the industry.”
Magic Eden Zhuoxun Yin, the company’s COO, also remarked on the $130 million closings. He says that such initiatives motivate the business even more as it looks “forward to delivering on Solana and beyond.”
Magic Eden now rules the Solana NFT community, having released over 50 games. Furthermore, it handles more than 90% of all gaming NFT volume.
Despite the current crypto market instability, many firms are not afraid to provide large sums of money.
For example, true Global Ventures 4 Plus (TGV4 Plus) announced a $146 million Follow On Fund closing a week ago.
According to reports, the cash will be used to assist Web3 startup activities in the firm’s portfolio and other late-stage Web3-related projects.
Similarly, earlier this month, the largest cryptocurrency exchange Binance launched a $500 million fund. The main objective was to assist organizations researching cryptocurrency use and steer the utilization of Web3 and blockchain technology.
Key takeaways:
- During its Series B investment round, Magic Eden raised $130 million at a $1.6 billion value.
- Magic Eden, which debuted in September 2021, has swiftly evolved to become the largest NFT marketplace on Solana.
- Despite the current bitcoin drop, NFT activity on Solana is increasing.
