Solana introduces a novel approach to blockchain validation with its proof-of-history (PoH), a cryptographic system that creates a verifiable timeline of transactions. Unlike traditional consensus mechanisms like Bitcoin's proof-of-work (PoW) or Ethereum's proof-of-stake (PoS), which face limitations in speed and scalability, PoH allows Solana to achieve transaction speeds of 50,000 to 65,000 transactions per second (TPS). This is a significant improvement over Bitcoin's seven TPS and Ethereum's 15-30 TPS. By pre-establishing transaction order through continuous hashing, Solana minimizes the communication overhead between validators. However, this scalability comes at a cost; only well-funded entities can efficiently run validators due to high computational demands, leading to potential centralization risks. Additionally, the high speed necessitates different security measures to handle issues like front-running and spam. Despite these challenges, Solana's PoH represents a significant leap in making blockchain technology competitive with traditional financial systems, allowing for near-instant and low-cost transactions.

Source đź”—