Recent years have seen the crypto industry grow rapidly. Developers are becoming more innovative, and new blockchains and cryptocurrencies are being launched regularly. One of the most recent additions to the crypto market is Solana — a high-performance blockchain project.
Even before it launched, Solana generated a ton of interest. Its architecture and functionality opened the doors to many new possibilities and led many to invest in it. Thanks to Nevada’s legislature, you can now also purchase Solana.
This article explains Solana, why it’s become so popular, and where you can buy it in Nevada. Stay with us and decide whether this crypto is the right investment for you.
Table of Contents
What Is Solana?
Solana is an open-source blockchain-based platform built to support various decentralized apps (DApps), decentralized financial (DeFi) solutions, and non-fungible tokens (NFTs). Its most significant advantage over similar cryptocurrencies lies in its ability to solve the so-called blockchain trilemma.
The blockchain trilemma is a design problem unique to the crypto world. It refers to blockchains’ inherent inability to become decentralized, secure, and scalable simultaneously. These three qualities seem to be mutually exclusive in the cryptosphere, so developers always have to prioritize two of them at the cost of the third one.
For example, we have decentralized and secure but not scalable Bitcoin or scalable and secure but not decentralized XRP.
Nevertheless, Solana developers claim they’ve overcome this problem. They’ve devised an innovative design that allows Solana to have all three qualities at once. The secret is combining two consensus mechanisms — proof-of-stake (PoS) and proof-of-history (PoH).
These two mechanisms work together to support thousands of nodes and scale network throughput in proportion to network bandwidth. Such a system allows Solana to process around 50,000 transactions per second (TPS) and become the world’s fastest cryptocurrency.
Solana’s Main Features
Solana is a complex system comprising eight key components that work in harmony. We’ll discuss each of them below, so you get a clearer picture of what Solana is all about.
- Proof of history — PoH is a new concept in the crypto industry. It functions as a cryptographic clock that provides the system with a record of order and passage of time between events on the chain. As a result, the nodes in the network don’t have to communicate among themselves to synchronize. This type of organization makes the entire system more efficient and productive.
- Tower Byzantine Fault Tolerance — Tower BFT is an optimized version of practical Byzantine Fault Tolerance. It’s an algorithm that leverages the PoH clock to reach consensus faster and reduces delays resulting from communication between nodes.
- Gulf Stream — Gulf Stream is Solana’s mempool system. It’s a mechanism in charge of caching and forwarding transactions to the network’s edge. It allows Solana’s validators to execute transactions in advance and, in turn, reduce the unconfirmed transactions pool and confirmation time.
- Turbine — Turbine is a protocol that breaks data into smaller portions, facilitating its transfer between the nodes. This system improves Solana’s overall transaction speed and resolves some of its bandwidth-related problems.
- Sealevel — Sealevel is a transaction processing engine that allows transactions to run concurrently on the same chain. In this manner, the component helps Solana boost its runtime.
- Pipelining — Pipelining is a process that directs input data sequences to various hardware for processing. It allows Solana’s nodes to replicate and validate transaction information faster.
- Archivers — Archivers are a network of nodes that act as data storage for the data from Solana’s validators.
- Cloudbreak — Cloudbreak is a data structure that makes the network’s concurrent reads and writes possible. It adds to Solana’s scalability and throughput.
Solana’s ecosystem is powered by its native token known as SOL. SOL functions like most other crypto coins, meaning you can freely purchase, sell, and trade or use it to pay fees. However, this token has a few other uses.
SOL holders can also use this crypto for staking. The staking process involves locking coins you own for a fixed period to support the blockchain’s security and operations. Supporting the network through staking has several benefits. Participation in the network’s development can earn you rewards and the right to vote on the future of the entire project.
These and other qualities made SOL pick up steam quickly after its launch. Its price has more than doubled in a year. SOL is currently worth $31.44. Over 340 million SOL circulate, and around 508 million exist in total supply. This crypto doesn’t have a max cap, so its coins are not eligible for mining in an infinite number.
Nevada Crypto Laws
Nevada authorities attempted to pass a bill introducing a separate statutory license program for virtual currencies in 2019. However, their efforts fell through. The Financial Institutions Division at the Nevada Department of Business and Industry currently regulates this state’s crypto market.
Its official statement establishes that all cryptocurrency operators in Nevada must obtain a money transmitter license and surety bond. Nevertheless, they also note that different business models might fall under different licensing statutes. So, the Division also requires that all NV businesses involved in virtual currency-related activities contact it to determine whether and what kind of license they need.
Where Can I Buy Solana in Nevada?
Nevada’s residents can buy Solana in two ways in this state — through a crypto exchange or from an SOL holder. Let’s discuss what both of these entail, so you can make the best decision for you.
Crypto Exchange Platforms
Crypto exchanges are platforms that allow users to buy, sell, and exchange cryptos like SOL. There are two types of crypto exchanges — centralized and decentralized. Decentralized exchanges don’t work with fiat currencies and provide less security than centralized ones. So, we’ll focus only on the former type.
Centralized exchanges are licensed and regulated marketplaces that you use to obtain your first cryptos. They work with various fiat currencies and allow you to stake your coins.
The first step to using centralized exchanges is to choose the one you’d like to join. This is not an easy task, so we’ve provided some tips below to help you out. Make sure the crypto exchange you pick meets the following criteria:
- NV licensing — As mentioned, Nevada’s authorities require that all businesses involved in cryptocurrency operations obtain a license. So, your priority should be to check whether the platform you’re interested in holds a valid NV license.
- SOL availability — SOL is a fairly popular crypto, but not all exchanges support it. Make sure the platform you’re planning to join works with Solana, among other cryptos.
- Good reputation — Not all crypto exchanges are equally good. So, don’t forget to do the background check on the one where you’re about to register. You can find a ton of useful information online.
- Safety — Crypto exchanges work with sensitive information, so they’re often targets of cyber attacks. Look into the history and the security protocols each platform uses to ensure your funds and data would be safe there.
- High SOL trading volume — All exchange platforms boast different levels of liquidity. Search for exchanges with a high SOL trading volume, which will make your transactions faster.
- Numerous payment options — Crypto exchanges typically collaborate with more than one payment company. The bigger number and variety of payment methods a platform offers, the better options you’ll have for your SOL purchase.
- Reasonable fees — Crypto exchanges rely on commissions and fees to survive. However, these costs vary from one platform to another. So, make sure the exchange you’re choosing imposes fees that fit your budget.
- Amicable customer support — If you’re a beginner, chances are you’ll need help from your exchange’s customer support agents to find your way around. So, remember to test the customer support service to check its efficiency, reliability, and friendliness.
Buying SOL directly is an alternative to using centralized crypto exchanges. However, it’s not the safest way of obtaining crypto. To avoid scams, we suggest buying from someone you already know, meeting in a public place, or using the help of a mediator.
How to Buy SOL via Crypto Exchange in Nevada — Step-by-Step Guide
If the previous paragraph dissuades you from buying SOL directly, here’s how you can do it through a crypto exchange. All centralized exchange platforms operate similarly, so you can follow the steps below no matter which one you choose.
- Choose a crypto wallet — Crypto wallets are digital places where you can store your coins after buying them. They all come with a private key that keeps your funds safe. There are many of them on the market nowadays, so research to find the best one.
- Pick a centralized crypto exchange — Once you’ve read our advice for choosing centralized exchanges, you shouldn’t have problems deciding on one. You can join it by visiting its website, filling in the registration form, and following its KYC requirements to verify your identity.
- Obtain SOL — Crypto exchanges don’t take long to activate users’ accounts if all their data and documentation align. So, you can purchase your first SOL shortly after you register. Simply find the payment method you like, make a deposit, select SOL on the crypto list, enter the number of coins you want to buy, and confirm your request.
- Withdraw, stake, or trade your SOL — Your SOL will appear in your exchange account balance as soon as the transaction clears. You can exchange them for another crypto, stake them, or withdraw them to your wallet.
Solana is currently one of the best-known blockchain-based platforms in the industry. Its unique design, exceptional scalability, and vast potential made it popular among investors worldwide, including in Nevada. If these qualities are enough to tempt you to invest in SOL, nothing is holding you back. Check out our advice and guideline for buying Solana in Nevada, and you’ll be good to go.