Solana Blockchain - Crypto Academy S4W4 - Homework post for pelon53 by @ammyy
Hello guys. Today I will be participating in a cryptoassignment by Prof @pelon53 that is based on the Solana Blockchain. I will be answering all the questions listed by the professor.
QUESTION 1.
Explain in details the POH of solana
Before I begin to explain the POH of solana let me give a brief explanation about the Solana blockchain.
What is Solana blockchain?
Solana is a web scale Blockchain that is secure, fast and scalable, it is the fastest Blockchain in the world and also the fastest growing ecosystem in the world of crypto. It is Decentralized and an open source, it allows 50,000 Transaction/second which is quite incredible.
The Solana Blockchain was founded by Anatoly yakavenko in 2017. The goal of the Solana software is to show that there is a possible set of software algorithms using the combination to create a Blockchain which would make transaction to scale proportionally with network bandwidth which will satisfy all the properties concerning a Blockchain which pertain to scalability, security and Decentralization.
There are 8 Core innovation.
- Proof of History.
- Tower BFT
- Turbine
- Gulf Stream
- Sealevel
- Pipe line
- Cloud break
- Archivers
Proof of History of Solana ~ A Clock before consensus.
Proof of history is an important core in the Solana Blockchain because it provide historical records that shows an event has occurred during a particular period. Proof of history allows the system to easily track transactions made and also keep track of the ordering of events without depending on the local clock. Another unique thing is transaction that are evaluated will be given a unique hash and in addition to it a count that can be publicly and effectively verified.
It is important to know that the proof of history relies on a cryptographic procedure to originate reliable arranged transactions recorded to the ledger. This procedure helps to solve the issue of agreement on time which permit fast finality of thousands of exchange/transaction per second.
A white paper was taken by the founder of Solana in the aspect of time keeping technique concerning the distributed system known as proof of history.
Proof of history runs with a hash function (SHA256), the hash runs continuously and the output becomes the input of the next function which creates a long chain that cannot be interrupted. With the help of the cryptographic clock it allows the Solana network to be more efficient and gives way for high production/throughout.
QUESTION 2.
Explain at least 2 cases of use of Solana.
1. Mango Market.
Mango market is a Decentralized platform, it offers a trade hub for spot market, swap and futures. It acquires liquidity from its own pools as well as from serum which is an exchange built on the Solana Blockchain. Mango market raised $70 million in a token sale, it is a decentralized cross-margin trading platform where it's users are permitted to use up to 5× leverage with lightening-fast network speed and near - zero transaction costs. which is incredible. Makers can also earn interested based on deposit and margin positions, trading can also be done with near-zero transaction just like I said earlier.
| TOKEN NAME | MNGO |
|---|---|
| Current Price | $0.3189 |
| Market cap | $318,896,838.44 |
| Rank | #236 |
Key Features of the Mango markets.
- Chart System.
- Lending.
- Limit and market order trades.
- Leveraged trades.
- Near - Zero fees.
2. Raydium
Raydium is an automated market maker (AMM). It serve as a liquidity provider which is built on the Solana Blockchain for the serum decentralized exchange. Raydium facilities trade, fast-token swaps and deep Liquidity. Raydium seeks to find the best possible price when swapping a token by routing orders through either a liquidity pool or through the serum order book.
Raydium platform has a native utility token called Ray Token. The Ray Token has alot of advantage when bought and held.
- Ray Token holders can keep the Ray Token to receive a share to token launch events.
- Ray Token holders can keep the token to earn protocol fees.
- Ray Token is used for protocol governance which gives the raydium community the chance to vote on proposal to make changes to the protocol.
- Liquidity providers can earn Ray Token by providing liquidity to liquidity pools known as raydium farm.
| TOKEN NAME | Ray Token |
|---|---|
| Current Price | $9.26 |
| Market cap | $659,964,015 |
| Rank | #110 |
key features on Raydium
- Raydium swap
- Raydium trade
- Raydium farm
- Accelerator
- Only 1
QUESTION 3.
Detail and explain the SOLA token.
Sola token is a combination of a sec and cex that makes use of Solana. The sola token is a market maker that enhance asset management efficiency by distributing liquidity mechanically. When the token user hold the Sola token they get to participate in every decision that will be made by the solatoken.net platform. The sola token is the governance token of the platform, the token is not listed on any other exchange except DEX Sola token application. The sola token can only be traded with SOLA/USDC pair.
| TOKEN NAME | Sola Token |
|---|---|
| Current Price | $0.054179 |
| Market cap | $1,464,660 |
| Rank | #1839 |
| 24hrs Trading vol | $41,733 |
QUESTION 4
When did Solana Blockchain see its operations interrupted? Why? Explain.
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The incident happened on Tuesday 14th of September, the Solana network met a major outrage that lasted for over 17 hours. The incident came when it's native token SOL was making gain it went from $1.86 in Jan 2021 to $171.
What happened.
The incident occurred when the protocol launched their IDO on Raydium, the bot generated quite alot of transaction that flooded the network. A money overflow was created by the transaction which cause many validators to crash forcing the network to slow down and stop. The load touched 400,000 transaction per second which cause the system to breakdown but $11 billion of their investor's money was locked for 17 hours. The SOL price went down from $171.48 to $142.
How was the problem resolved.
When the problem was discovered, they decided to have a change in protocol to allow divergence of the network's path from the last confirmed slot. The proposal had to be endorsed by 80% of the active stake and Solana works with proof of stake.
Global engineers worked together to write down code to rectify the issue and coordinate an upgrade the network.
The network upgrade took 2 and half hour to complete after the consensus was reached.
QUESTION 5
Check the last block generated in Solana and make an approximate calculation of How many blocks per second have been generated in Solana, taking into account from the initial block to the current one? Justify your answer and show screenshots.
- Log in to https://explorer.solana.com
- It takes 0.5sec to develope a block.
- Use the search engine to obtain information about block #1
- The first block was made on march, currently it has been 18months.
Calculation.
HOW TO GET THE SEC A BLOCK IS PRODUCED.
There is 2,630,000 secs in 18 months
Total seconds= 18 × 2,630,000
= 47,340,000
Average second= 47,340,000/99,051,949
=0.477931029908356
= 0.5sec
HOW TO GET THE MONTHS.
= 0.5 × 99,051,949
= 49,525,974.5
Approximately 18 months.
CONCLUSION
Solana blockchain is the fastest in the world, and the SOL token Rose from $1.84 to $171 even though the site crashed actually for people that purchase the token at the lowest price I don't think they face more loss than people that purchase the token at the current price then.
Now the token is worth $141 and it is growing fast.
0.5sec is used to develope a block that means in a minute 120 blocks are generated, in an hour 7,200 blocks are generated, in 24hrs 172,800 blocks are generated, in a month 5,184,000 blocks are generated and in a year 62,208,000 blocks are generated per year.
This is the end of my assignment. Thank you for reviewing it.