The rise of blockchain technology has put various cryptocurrencies in the spotlight. And Solana is among those that have drawn the most attention. Thanks to its unique design and capabilities, investors worldwide have backed this project, and Oklahoma’s current money transmitter regulations allow its residents to do so, too.
If you’re interested in investing in Solana, read this article, as it will introduce you to the Solana ecosystem, explain how it works, and outline how you can legally obtain this crypto in Oklahoma.
What Is Solana?
Solana is a web-based blockchain project designed to support decentralized apps (DApps) and smart contracts. Its high-speed and permissionless layer-1 blockchain is known for its scalability, speed, and low transactional costs. Solana has quickly risen to popularity thanks to these qualities and became known as the Ethereum killer.
The idea for this crypto project comes from Anatoly Yakovenko, an ex-Qualcomm executive. He wanted to create a decentralized system that could reach the level of scalability some traditional payment methods boast. However, until then, only centralized networks like Visa could process thousands of transactions per second.
Yakovenko came up with an entirely new concept he believed would solve this problem. The concept in question is known as the proof-of-history (PoH) consensus mechanism. Its creator published a white paper explaining the secret behind the mechanism in 2017.
Proof-of-history is a system that tracks the event order happening on the network and the passage of time between them. That way, it provides a historical record of events occurring at a particular time.
The record is readily available to all nodes working in the system, eliminating communication to come to an agreement. Instead, they can focus on adding blocks to the network, allowing for a more rapid flow of transactions.
Solana was first presented during the 2017 initial coin offering boom. It went through several testnet phases in the following years and was officially launched in 2020.
Proof-of-history is not the only mechanism that allows Solana to function. This crypto project relies on another system called proof-of-stake (PoS). The PoS mechanism chooses one of the nodes in the network as a leader and allows it to guide message sequencing between the other nodes. The unique combination of PoS and PoH enables the network to reduce workloads, increase throughput, and achieve greater scalability.
Moreover, a few more components make Solana as efficient as it is:
- Tower Byzantine Fault Tolerance (BFT) — BTF is an algorithm whose primary function is to shield Solana’s network from failure. It ensures the system keeps running even if one or more nodes fail to complete their tasks.
- Gulfstream — Gulfstream allows Solana to forward transactions to validators in advance. It ensures no unconfirmed transactions are waiting for their turn in the system and speeds up their processing.
- Sealevel — Sealevel is the technology that allows Solana’s ecosystem to run more than one smart contract simultaneously. It saves time and makes the network more efficient.
- Cloudbreak — Cloudbreak is a component that connects hardware and software necessary for Solana’s functioning. In this way, the database can read and write transaction input.
- Pipeline — Pipelining is the process by which hardware assigned with input data in Solana validates information blocks quickly and efficiently.
- Turbine — Turbine is a block propagation tool that divides nodes in the system into smaller clusters. Smaller clusters of information like these are much easier for the system to validate, which helps speed up transactions.
Solana’s native token is better known as SOL. It’s both a unit of monetary value and blockchain security. The first functionality allows users to buy, sell, and trade this crypto like any other coin on the market. The second gives users a chance to support the Solana project through staking.
The staking process involves locking the coins you own to validate transactions in the network and secure the blockchain. In return, the validator turns a profit and gets a say in the project’s governance.
There are currently around 350 million SOL in circulating supply and 508 million in total supply. This cryptos’ price currently sits at $43.61.
Where Can I Buy Solana in Oklahoma?
As mentioned, Oklahoma’s money transmitters legislation regulates its crypto market. It allows its residents to purchase Solana in this state using two ways — through a licensed crypto exchange platform or from an individual selling the coins. We discuss both options in the section below.
Crypto Exchange Platforms
Crypto exchange platforms are marketplaces where users can obtain, sell or trade cryptos they own. The community divides them into two categories — decentralized (DEX) and centralized (CEX). The former is less popular and doesn’t work with fiat currencies, so we’ll focus on the latter.
A single authority owns centralized crypto exchanges. They’re also licensed and regulated and more secure than their decentralized counterparts. So, most buyers choose to purchase cryptos using this type of platform.
Since numerous centralized exchanges operate in Oklahoma, it can be hard to decide between them. Feel free to use the list of following characteristics as your guide through the process of choosing the right CEX:
- CEX availability and licensing — The first two things you should check off your list are crypto exchange’s OK availability and licensing. Make sure the platform you’re interested in operates in Oklahoma and has its money transmitters license.
- Available cryptos— Check out the cryptos your platform of choice works with. Its list should include not only Solana but also other popular cryptocurrencies you might want to trade in the future.
- Reputation — Crypto market abounds with exchanges, but not all have pristine reputations. Learn as much as possible about a platform before registering to make sure it’s legit. Visit crypto forums, look for past and current users’ comments, and read the reviews.
- Security — Speaking of legitness, don’t forget to look up the exchange’s security measures. The best CEX employs state-of-the-art encryption and security protocols to keep their users protected 24/7.
- Fees — All CEX impose fees on their users — that’s how they earn profit. Nevertheless, these fees vary depending on the platform. Check how much your CEX charges for SOL transactions and compare those costs to its competitors. Choose an exchange whose fees won’t break your budget.
- Available payment options — Before buying SOL on a crypto exchange, you’ll have to top your account balance. Payment methods vary between platforms. Go through the available banking methods list before joining an exchange to ensure it works with the payment processors you like to use.
- User-friendliness — Last but not least on our list of important CEX aspects is user-friendliness. If you’re new to crypto exchanges, finding your way around can be challenging. Make your experience more convenient by choosing a platform with an intuitive interface and easy-to-navigate layout.
Buying Solana From an Individual Seller
If you’d like to forgo using centralized crypto exchanges, you can purchase SOL from an individual willing to sell you the coins. However, you should know this is not the safest option to obtain Solana in Oklahoma. Crypto markets are not free of scammers, and it’ll be hard to protect yourself if you pick this type of trade. Our advice is to buy only from people you know and can trust or use CEX platforms instead.
How to Buy SOL Using a Crypto Exchange — Step-By-Step Guide
Those who’ve decided to buy SOL using centralized crypto exchanges will be pleased to know the process is relatively straightforward. You can follow our guide below if you need any help along the way.
- Choose a crypto wallet — Before purchasing your first SOL coins, you must find a digital wallet to store them. The market offers many different versions, so do your research and pick the best one for your needs.
- Pick a crypto exchange — Your second step in this process should be picking a centralized exchange. Use our tips above to compare available platforms and choose the one that seems the most suitable.
- Open an account — Visit the chosen exchange’s website and start the registration process. You’ll have to provide personal information and verify your email address and identity before your account is fully active.
- Make a deposit — Navigate the platform to find the section where you can top your account. Select your preferred payment method, enter the amount of money you’d like to transfer, and confirm your request.
- Purchase Solana — Browse through available crypto/fiat currency pairs and choose the one you’d like to use. Input the number of coins you want to buy, submit your request, and wait for the transaction to clear.
- Withdraw your coins — If you’re not going to stake or trade your SOL further, make sure you send them to your e-wallet as soon as possible. Crypto wallets have tighter security, so your coins will be better protected there.
Solana is one of the top-rated projects in the crypto world, and its glory days are nowhere near their end. Thanks to its steady progress, experts expect this crypto will gain more supporters and investors in the future. If you’d like to join this crowd, you can buy Solana in Oklahoma right now. All you need to do is choose an exchange platform and follow our step-by-step guide above. Good luck!