Solana Blockchain & NFTs | 5 Things You have to Know First

The NFT space first started in Ethereum blockchain, then it exploded like crazy. And soon, some sidechains like Polygon, Cardano, and Solana. Today, we’ll be diving more with Solana, but before we start.

Disclaimer

We are not financial advisors. The content on our website is for educational purposes only and merely cites our own personal opinions.

Like the NFTs in Ethereum blockchain, Solana NFTs could also be a good venture as it got a low gas fee. Also, at the end of this article, you’ll discover why Solana is dominating the NFT space. So, enough words, let’s dive in.

The Rise of NFTs

When you hear the word blockchain, the first thing that perhaps would come to your mind is Cryptocurrency. However, since the start of Quarantine during the Covid Pandemic, another aspect of blockchain has boomed, the NFT space. Jpegs were being sold for thousands, if not millions of dollars. Going back to the blockchain, everyone who’s interested in joining the bandwagon has to face a wall, gas fee. Perhaps this is what you often hear that most people on Twitter are complaining about. Yes, with the Ethereum blockchain, gas fees could be as high as 70$. And here’s why.

Proof of Work vs. Proof of Stake

The biggest blockchains like Bitcoin and Ethereum mainly use “Proof of work” to validate its transaction. This means that blockchain participants, called miners, have to provide a computational value that acts as proof of a transaction. But this is proportional to how powerful the computer is being used. This means the cost required for a transaction to push thru or the gas fee is more expensive.

However, in Solana blockchain, “Proof of Stake,” or what they called “Proof of history,” is being used instead. The way this work is, in order to become a network participant, you’ve got to stake some of your cryptos. Then, this would give them a chance to validate a transaction earning some more crypto as a gas fee. So, the bigger crypto you stake, the more chance of validating transactions. And this made the Solana blockchain gas fees way cheaper.
Since the transaction is being validated thru records, not with powerful computers competing, which has the higher computational value.

Where to Buy and Sell SOL?

So, the blockchain mainly operates with SOL or Solana as its native token. And you can get SOL in major crypto exchanges like Binance, Coinbase, Kucoin, and FTX. Mostly the crypto exchange that we’ve mentioned is easy to use and easy to navigate for beginners. You just need to have your account created, and then verified. And with that, you can start buying SOL.

Creating your Solana Wallet

There were a ton of wallets for Solana, but for newbies and beginners, the Phantom wallet is highly suggested. But again, make sure to do your own research first. Still, the Phantom wallet is the most popular non-custodial Solana wallet today. And a non-custodial wallet means you own your private key and secret phrase. And just like MetaMask, to install it, go to the app’s website. And there, it’s either you install the extension in your browser or download the app on your phone. Then, the final step is to create a new wallet. Then, the Phantom app would provide you with the secret recovery phrase that gives you access to all your assets. So make sure you never share it with anyone. Maybe you can write on a piece of paper and keep it secured.

Top Solana NFT Marketplace

Still, the most popular NFT space as of now is Ethereum, with its marketplace, OpenSea. But again, the expensive gas fee is preventing entry-level NFT collector aspirants from riding the same bandwagon. In that case, one of the growing alternatives is the Solana NFT space, and despite OpenSea finally integrating the Solana blockchain.

Currently, the most popular and most secured Solana NFT Marketplace is Magic Eden. It’s a great platform that has 0% listing fees and only takes a 2% fee per sales transaction. As special mentions, there’s also Solanart and SolSea. So, if you happen to be interested in a Solana NFT project like DeGODs, Solana Monkey Bussiness, and so on, make sure you use these verified and secured Solana NFT platforms.

Solana Dominating the NFT Space

It’s no surprise that with the meteoric rise of both the Solana blockchain and its native token SOL, many people are viewing the Solana NFT as a better alternative. Well, since January last year, 1 SOL only cost $1.51 and exponentially reached $200 in November that same year. Now, in 2022, 1 SOL seat at $100 up to $136. Moreover, more people are shifting to the Solana NFT space as it’s more accessible and still profitable. And the more technical aspect of that is Solana blockchain is currently the fastest among other sidechains.

Conclusion

Theoretically, it can process 50,000 to 65,000 transactions per second. So, now, we’ve learned things about the Solana blockchain & NFTs. It’s still unquestionable that the Ethereum blockchain is a way more secure and decentralized option between the two. However, the user’s preferences in both blockchain and the NFT marketplace are quickly changing due to the astronomical energy consumption, congested transaction speed, and expensive gas fees when using Ethereum. In contrast, Solana is dominating the NFT space with its cost-effective, efficient, and faster transactions.

To be continued…