You probably know that most NFT projects are built on the Ethereum network. And while the Ethereum chain remains the most popular solution for minting and buying and selling NFTs, many market participants are looking for a replacement due to the general congestion of the network and the rapid growth of gas prices. Solana (SOL) is one of the possible and very interesting alternatives, the cost of which has grown from $ 1.60 to $ 225 since the beginning of the year and continues to grow rapidly.
Like Ethereum, the Solana blockchain is designed to create smart contracts and decentralized applications, including launching various NFT projects – from art collections to marketplaces for minting and selling various non-fungible tokens. This article will focus on just such projects – we will tell you how to develop your own NFT solution based on Solana, and why you should choose this particular blockchain, and not Ethereum or another blockchain.
See more: How to create an nft project on solana
Solana Blockchain Review
Founded by former Qualcomm, Intel and Dropbox engineers in late 2017, Solana is an open, decentralized blockchain network focused on providing scalability without compromising transaction costs, decentralization, and security. Basically, it is a faster, safer and more censorship-resistant counterpart to Ethereum, providing the open infrastructure needed for global blockchain adoption.
Solana is powered by an improved Proof of Stake (PoS) consensus algorithm. The main feature of Solana PoS is the Proof-of-History (PoH) protocol, which allows each node to generate timestamps locally with SHA256 computations. This eliminates the need to broadcast timestamps over the network, increasing the overall efficiency of the Solana network, which allows for very high speed and scalability of the blockchain.
The project has its own coin – SOL. As with the Ethereum network, SOL can be used to initiate smart contracts and decentralized applications, and pay network fees. At the time of launch, in the spring of 2020, SOL was sold for $ 0.60, now its price exceeds $ 225 (that is, the rate has grown 375 times in a year and a half).
7 benefits of Solana for NFT
The explosive growth of the SOL rate, which we have not seen on the market since 2014-2018, is explained by the advantages of Solana in comparison with its main competitors – Ethereum and Binance Smart Chain, including for launching NFT solutions. What’s more, in just a year since launch, Solana has become the second most popular NFT launch space after Ethereum, with multiple projects launched every day.
Maybe you are interested: The top 50 NFT collections you should know about | Finder
It is considered by many to be a true “Ethereum killer” as the Solana network can process up to 65,000 transactions per second for as little as $ 0.00025 per transaction. Moreover, in the future, the Solana development team promises to achieve a throughput of 700,000 transactions per second. By comparison, the Ethereum network is capable of processing an average of 16.5 transactions per second, while the average transaction fee is $ 46 (December 2, 2021). That is, the Solana network is almost 4,000 times faster and 185,000 times cheaper than Ethereum.
When it comes to NFT processing, the difference becomes even more significant. Minting and sending non-fungible tokens on Ethereum requires more computing resources than sending regular ETH and ERC-20 tokens, because NFT processing requires interacting with a custom smart contract. Consequently, gas charges will be even higher— sometimes over $ 100, which can be more expensive than the NFT asset itself. Whereas the minting of NFT on Solana is only 0.00001 SOL, or $ 0.015.
The speed and cost of processing non-fungible tokens are not the only advantages of the new blockchain. Here are some other benefits you can look forward to if you decide to develop your NFT solution based on Solana.