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HapPhi Pay's Unique Advantages Over Bitcoin's The Lightening Network

There are other methods besides the Lightning Network to scale blockchains and reduce transaction fees. Other blockchain projects are working to improve the scalability of their networks and keep transaction costs low. EOS and Ethereum are two examples of projects that use sidechains and sharding, respectively, to keep transaction costs down. Solana is a blockchain project with unique advantages, such as the Lightning Network. This post will explain what makes Solana unique and why it's beneficial to investors. HapPhi has chosen Solana because of these benefits.

Written by
June 15, 2022


The Lightning Network is a great solution for scaling blockchains and reducing transaction fees. However, it’s not the only solution for these problems. Most of the top blockchain projects are also implementing solutions to scale their networks and reduce transaction costs. For example, EOS has side-chains and Ethereum has sharding, both of which can also reduce transaction costs. If you’re researching Solana as an investment opportunity, you may have heard about its unique advantages over other blockchain projects like the Lightning Network. This article explains why these advantages exist and why they are advantageous for Solana investors.


Solana’s Ultra-Fast Speed

Speed is a crucial factor in business and consumer adoption of blockchain technology. Solana has been engineered for the highest throughput of any blockchain protocol in production: upwards of tens of thousands of transactions per second. Solana’s high throughput is due to its unique design of sharded networks, proof of history, and consensus protocol. Solana’s sharded networks allow pieces of the network to be replicated and sharded across different machines. This allows the network to be scaled horizontally and to process millions of transactions per second. Solana’s proof of history consensus protocol allows blocks to be created quickly and with a low level of trust. This means that blocks are created so quickly that they can be applied almost instantaneously. Solana is already operational and has been tested in the wild. Solana’s testnet has been running for over a year and has been stress tested with a large number of nodes to simulate real-world usage.


Solana’s Low Transaction Fees

Transaction fees are how miners are rewarded for validating transactions, including smart contracts. Miners will be rewarded with tokens from the network’s reserve if they mine a block that increases the total supply of tokens. Since the number of tokens and the amount of the reward are both fixed, miners will be rewarded with a fraction of the total transaction fees that were collected. Solana’s low transaction fees will allow the network to reward miners with a larger portion of the total collected transaction fees. Solana’s low transaction fees are due to its high scalability. Since the network is able to process millions of transactions per second, it can also collect millions of transaction fees per second. For example, if Solana has a market cap of $100 billion, the network will collect $100 billion in transaction fees per year. If Solana’s transaction fees are only $0.001 per transaction, the network will earn $1 billion in transaction fees per year.


Solana Is Already Operational

Most of the top blockchain projects are still in the process of developing their full network and proving their value to investors. Solana is already operational and has a running testnet that has been stress tested for over a year. The testnet includes a many nodes that have been operating in the wild. This means that you can use Solana’s wallet right now without having to wait for the mainnet launch. You can send and receive cryptoassets with Solana’s wallet on the testnet, mine blocks to earn SRL tokens, and use the wallet to create and deploy smart contracts.


Short-term Roadmap For Solana Network

- Summer 2019 - Protocol finalization, PoW release, SRL token distribution - Fall 2019 - Stress test and beta launch - Q1 2020 - Mainnet launch - Q2 2020 - Oracle integration - Q3 2020 - DApp integration - 2020+ - SaaS deployment


Unique Consensus Protocol: Proof of History

Solana’s unique consensus protocol, proof of history, is a semi-random lottery consensus algorithm that uses a trusted source of accurate information to select blocks to mine. This is useful for distributed networks because it requires very little trust between nodes. Solana’s trusted source of accurate information is the hash of the current block height and the hash of a block from the blockchain that is being used to verify the accuracy of the current block height information. The unlucky nodes that don’t have the correct current block height information won’t be able to win the consensus lottery and will be skipped. This means that nodes can be sure that they are only competing with nodes that have the same accurate, trusted block height information as them. This makes it so that Solana can be sure that the consensus lottery is fair and that only nodes with accurate information are mining blocks.


Final Words: Why Solana May Incorporate Oracles

Oracles are a trusted source of information that can be used to verify the validity of data. They are similar to the trusted source of information that is used in Solana’s unique consensus protocol, proof of history. Oracles are useful for many use cases, including creating and executing smart contracts. However, if Solana chooses to incorporate oracles, this could mean that the network needs to be significantly altered to accommodate them.


Conclusion

The Lightning Network is a great solution for scaling blockchains and reducing transaction fees. However, it’s not the only solution for these problems. Many other blockchain projects are also implementing solutions to scale their networks and reduce transaction costs. For example, EOS has side-chains and Ethereum has sharding, both of which can also reduce transaction costs. If you’re researching Solana as an investment opportunity, you may have heard about its unique advantages over other blockchain projects like the Lightning Network. This article explains why these advantages exist and why they are advantageous for Solana investors.

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