The Solana blockchain garnered a lot of attention in 2021. The SOL token rose massively in value in autumn 2021. The blockchain is convinced with an extremely high transaction speed and high scalability. We currently have a new service from the Solana project which is “Solana Pay”, a payment network that could bring new innovation in the field of payment processing.
What is Solana (SOL)?
Solana is a blockchain network that is characterized by a combination of high transaction speed, good security, and decentralization. The combination of these 3 factors has long been considered a problem that the largest and most important smart contract platform, Ethereum, had to struggle with.
With its innovative proof-of-history consensus mechanism, Solana can achieve transaction speeds of up to 10,000 transactions per second. Solana also has smart contract functions, which suddenly made the blockchain extremely interesting for decentralized applications in 2021. Solana offered a massive increase in scalability compared to other blockchains with smart contract capabilities.
In the second half of 2021, Solana became a major player in the NFTs and DeFi space extremely quickly. This caused a price explosion of the SOL token, which peaked in the fourth quarter of 2021. Solana surged into the top 10 cryptocurrencies by market cap, at times even overtaking established cryptocurrencies like XRP and Cardano.
Solana’s problems were often related to reliability, as there have been repeated network failures on the Solana blockchain in recent months. It turned out that the proof-of-history consensus mechanism was prone to errors at extremely high transaction volumes, which can lead to “transaction congestion” and eventually congestion of the network. Still, Solana remained one of the most promising cryptocurrencies. So what is Solana Pay all about?
How did Solana Pay come about?
The company Solana Labs is primarily responsible for the development of Solana Pay. They work with many partners such as Shere, Circle, Checkout.com, Citcon, Phantom, FTX, and Slope. Team Circle conducted intensive studies that highlighted the need for new digital payment methods. According to Circle, 73% of all companies see the range of digital payment methods as a fundamental growth factor for 2022.
Due to this strong demand, the development of a new payment system based on the Solana blockchain began in 2021. Solana Labs and its partners want to be at the forefront of these developments and offer decentralized alternatives to services like PayPal.
How does Solana Pay work?
The Solana Pay digital payment platform offers companies and individuals a fast, fee-free payment system that leverages the strengths of the Solana network for transactions. According to its own statements, the network should support up to 65,000 transactions per second. The software should be easy to integrate into any form of company platform.
Both developers of dApps can integrate Solana Pay for simple transactions, as well as simple digital sales platforms can implement the application if they have a Solana wallet. Many observers are already comparing Solana Pay to PayPal. For example, Solana Pay could bring the same innovations to crypto payments that PayPal brought to traditional digital payments.
Which wallets support Solana Pay?
At the moment Solana Pay supports 3 wallets: Phantom, Crypto Please and FTX. The wallets have the following properties:
- Phantom is a Solana exclusive wallet that allows you to buy and hold tokens and swap cryptos and NFTs.
- Crypto Please is a wallet that focuses on Solana, and that allows users to send cryptos via Telegram, WhatsApp and other applications.
- FTX is a well-known major crypto exchange that offers numerous cryptocurrencies, including Solana.