Investing in Solana
Solana is a layer-1 smart contract platform for decentralised applications (dApps) featuring high throughput and low transaction costs. The project originated in 2017 when founder Anatoly Yakovenko proposed a whitepaper draft with a new timekeeping technique for distributed systems called proof of history (PoH), which underpins the Solana network today.
The Solana network is designed for high transaction throughput. It delivers fast transactions processing up to 50,000 transactions per second, with each transaction taking place at a relatively low cost.
The Solana ecosystem currently hosts over 500 projects on 14 categories including banking and payments, data and analytics, wallet and browser, gaming and non-fungible tokens (NFTs), decentralized finance (DeFi), and infrastructure amongst others. Over half of all projects are in the NFT/gaming and DeFi categories.
Why invest in the WisdomTree Physical Solana ETP
+ WisdomTree is a world leader at securing physical metals underlying ETPs and have used the same structure to protect the underlying physical holdings.
+ The ETP is physically backed by Solana, professionally secured in cold storage.
+ The product utilises institutional digital assets custody solutions which are continuously evaluated and monitored by WisdomTree.
+ The ETP is priced and structured for the institutional investing community.
For each digital currency there may be multiple available reference prices in the market. In order to provide an indicative USD NAV to the market, WisdomTree intends to use the CF Benchmarks reference rate to value the WisdomTree Solana Coin Entitlement.
Solana Staking
The Solana networks uses a proof of stake consensus mechanism. This means that one can delegate (i.e. ‘stake’) SOL cryptocurrency to one of the validator nodes that run the network. A node is a computer that runs the Solana software. This node then validates new entries to Solana’s distributed ledger (‘blockchain’). In return for helping to update and secure the ledger, validator nodes are probabilistically allocated new SOL cryptocurrency (the ‘staking reward’). The higher the staked amount of SOL cryptocurrency the higher the probability of receiving this reward. The staking reward can vary over time depending on a number of factors including the digital asset network’s inflation rate and the performance of the validator node.