Oregon is one of the friendliest states in terms of cryptocurrencies and other digital assets. Cryptos entered the state in 2014, introducing them to many businesses, including restaurants, retail stores, and bars. The Beaver State has also hosted numerous meetups and conferences for Solana and other crypto enthusiasts.
This article will examine Solana from its foundation to the present day. We’ll also share tips on where you can buy the SOL coins and what is the best way to do that. Stick around.
Table of Contents
What Is Solana (SOL)?
Solana is an open-source blockchain project constructed to facilitate the creation of decentralized applications (DApps) and smart contracts. Additionally, the platform supports a wide range of nonfungible token markets (NTF) and decentralized finance platforms (DeFi).
The two most notable Solana features are scalability and efficiency. Due to its unique architectural design, the project possesses both qualities. Namely, Solana incorporates two types of consensus mechanisms — proof-of-stake (PoS) and proof-of-history (PoH). As a result of this hybrid consensus mechanism, Solana can perform 65,000 transactions per second without requiring scaling solutions.
Solana’s super speed also impacts its gas fees. Compared to other cryptocurrencies, the average transaction fee is only $0.00025, making it the lowest fee in the crypto realm.
In 2017, Anatoly Yakovenko published a whitepaper introducing the proof-of-history consensus concept that would later become the foundation for Solana. Along with Raj Gokal, Stephen Akridge, and Greg Fitzgerald, he developed the idea for a single, scalable blockchain.
Solana protocol finally saw the light of day in March 2020. During the private token sale in 2019, the team raised over $20 million and an additional $1.76 in the public token sale following the Solana launch in 2020. Geneva-based Solana Foundation is the leading supporter of this project developed by Solana Labs.
How Does Solana Work?
Today, blockchain developers deal with many challenges when developing new blockchains. However, three of them are probably the hardest to manage — scalability, decentralization, and security.
As blockchains are being built, these three qualities appear mutually exclusive. For instance, discrepancies in time and throughput slow down the system’s transaction verification process on decentralized blockchains. As a result, blockchain developers who prioritize speed must sacrifice decentralization.
However, Solana’s creators have managed to resolve this problem. The hybrid consensus mechanism we mentioned above changes how the system verifies transactions.
With this mechanism, messages can be sequenced differently between nodes, and transaction chains can be created on the network. Consequently, the system increases network throughput and protocol scalability while reducing the workload on the network.
Security is also a priority for Solana. With its delegated proof-of-stake technology (DPoS), Solana validates transactions, distributes SOL tokens, and keeps the network secure.
Also, anyone who owns SOL can participate in the network’s operation. As an SOL holder, you can lock, stake, delegate your tokens to other participants, and participate in the project’s governance.
Similarities and Differences Compared to Ethereum
The Solana and Ethereum networks share similarities but also some differences. The two networks both support decentralized apps, and each with its own crypto token.
Despite its developers’ efforts, Ethereum’s transaction speed has been significantly slower. Additionally, Solana boasts excellent scalability due to its proof-of-history consensus mechanism. Ethereum uses proof of work that has shown limited scalability potential, like Bitcoin.
On the other hand, Ethereum and Solana have unlimited token production potential. The total number of Ethereum coins released to date is 120 million, while the number of Solana coins in circulation is approximately 511 million.
SOL Token Explained
Solana has its own native token — SOL, that you can buy, sell, trade, or invest in. In addition, you can use SOL for running smart contracts, paying transaction-related fees, and participating in the project’s governance. Because of this, SOL, like DOT, has a utility function.
Currently, Solana is among the world’s top cryptocurrencies. During the initial seed sale in 2018, its price was $0.04, but two years later, in 2021, it reached its all-time high of $256.96. Solana’s current value is $42.18 (as of July 2022).
The number of SOLs on the market currently exceeds 346 million. This crypto doesn’t have a market cap, so it’s no surprise that over 500 million SOL coins have been released thus far.
Investing in Solana
In 2021, Solana saw its SOL token value grow by over 10,000%, making it one of the year’s most popular projects. Along with gaining more mainstream attention, Solana has attracted institutional investors because of its established ecosystems, developer adoption, and expanding offerings (such as NFTs).
Still, Solana has plenty of room to grow and expand. Compared to its main competitor, Ethereum, Solana has one-tenth of its size. However, due to its high transaction speeds and over 1,000 new projects, Solana is expected to grow more in the future.
Understanding the risks associated with investing in Solana or other cryptocurrencies is also essential. As a result of the volatile nature of the crypto market, Solana may grow dramatically or fall drastically. Solana is a risky investment, so make sure you understand that and speak to an investment professional if necessary.
Crypto Laws in Oregon
During the past few years, cryptocurrencies have been gaining popularity and acceptance in the Beaver State. Cryptos first arrived in the state in 2014, and the Oregon Legislature considered a bill that would regulate digital currencies as payments for goods and tax services, but the bill failed to pass. In 2016, the state enacted a law exempting virtual currency from property taxes.
Due to being highly volatile, in 2018, the state’s treasurer advised investors to be careful when investing in digital currencies without taking any formal action. In 2019, Oregon’s Division of Financial Regulation clarified that cryptocurrencies do not qualify as securities. A bill introduced in the Oregon Legislature in 2020 would establish a new type of financial institution authorized to custody and trade cryptocurrencies — a digital asset bank.
However, Beaver State has yet to decide how to treat Bitcoin, Ethereum, Solana, and other cryptocurrencies. But judging from the state of things, there is no doubt that their future is bright.
Where Can I Buy Solana in Oregon
Many sites operating in the US allow Solana purchases, including Oregon. Such websites are called cryptocurrency exchanges. Cryptocurrency exchanges can be centralized or decentralized and function as marketplaces for exchanging cryptocurrencies and fiat currencies. Our focus will be on the former because they are licensed, safe, widely accessible, and allow fiat currency usage.
In addition to crypto exchanges, it is possible to buy SOL directly from someone willing to sell it, so we’ll cover both options below.
Centralized Crypto Exchanges
A centralized cryptocurrency exchange is a platform for trading cryptocurrency, making it an essential transaction tool. The word centralized refers to the third party that facilitates the exchange of assets between buyers and sellers. Additionally, decentralized cryptocurrency exchanges are also available. Their peer-to-peer capabilities allow direct crypto transactions without any intermediaries.
Compared to individuals, exchanges provide security and monitoring that are impossible to achieve independently. Holders of SOL trust the exchange to complete their transactions safely and to connect them with traders.
Binance, Kraken, Gemini, Coinbase, and Huobi Global are some of Oregon’s most popular crypto exchanges. When choosing an exchange to complete your transaction, consider the following factors:
- Availability in Oregon — The exchange must be regulated by local US authorities and be available in Oregon.
- Accepted cryptocurrencies — Not only does Solana need to be available, but many other cryptos as well, as this shows that the exchange is popular and provides many trading pairs. This option allows you to diversify your portfolio further by exchanging SOL for other cryptocurrencies.
- User interface — While some exchanges have great user interfaces, others are difficult to use for beginners. Thus, find the one that will be easy to use and operate.
- Reputation — The company’s reputation is crucial since you will leave your money in its hands.
- Liquidity — There are a lot of exchanges that offer Solana, but they may not have enough. Trade volume should be sufficiently high, so you can quickly complete each transaction.
- Security — A cryptocurrency exchange must use proper security measures to protect its users’ data. The cryptocurrency world is not immune to breaches, so checking how the chosen exchange handles them is vital.
- Payment methods — While exchanges have various payment methods, it’s still important to check because the platform you prefer might not have the one you’re used to. The good news is that if the exchange is regulated, debit and credit cards will always be available to you.
- Fees — Crypto exchanges make money by charging fees, but each platform charges differently. Make sure you check out the fees and how high they are.
You can obtain SOL tokens directly from another owner if you do not wish to go through the verification process crypto exchanges impose. This might be a more convenient and cheaper option, but a risky one.
If you are unfamiliar with the latest SOL worth, negotiation tactics, and other security issues, we do not recommend you proceed with this alternative. You’ll want to find someone you can trust to do the deal with, or you’ll risk getting scammed.
How to Buy SOL on an Exchange — Step-by-Step Process
Purchasing Solana is the same as buying any other digital currency. Nevertheless, if you are new to this process, you can refer to the following step-by-step guide:
- Find a wallet: You’ll store your SOL coins in a digital wallet. If you are interested in finding one, you can browse the list of supported wallets on the official Solana website.
- Pick an exchange: Choose an exchange to get started. Don’t forget it needs to cover everything we mentioned before.
- Create an account: Visit the official website of the exchange of your choice, open an account, submit your documents, and verify your account.
- Make a deposit: Choose the payment option you prefer, and deposit the fiat money you’ll use to purchase SOL coins.
- Buy SOL: Click on the Buy button when you have selected the amount of Solana tokens you wish to buy.
- Transfer SOL to your wallet: Once you have purchased the SOL tokens, you should keep them in your wallet for extra security. However, if you plan to trade with them in the future, you can leave them on the exchange.
Overall, Solana is a popular crypto with low fees and super-fast transactions. The growing list of applications on this platform puts it on par with competitors like Ethereum or Cardano.
Despite so many improvements and problems it solves, Solana is still a relatively new ecosystem that continues to grow and improve daily. On top of its many existing projects, Solana also runs an NFT marketplace with hundreds of dApps in development. Only time will tell if Solana’s growth continues to accelerate in the future, but currently, it is one of the most promising blockchain projects.