Solana (blockchain platform)

Solana is a blockchain platform which uses a proof-of-stake mechanism to provide smart contract functionality. Its native cryptocurrency is SOL. Solana was launched in 2020 by Solana Labs, which was founded by Anatoly Yakovenko and Raj Gokal in 2018. The blockchain has experienced several major outages, was subjected to a hack, and a class action lawsuit was filed against the platform. Solana's total market cap was in January 2022. However, by the end of 2022, this had fallen to around $3 billion following the bankruptcy of FTX. Following the general rise of the cryptocurrency market in 2023, its market cap rose to$7 billion. According to the company's white paper, Solana runs on a proof of stake model. The New York Times and Financial Times described the coin as an alternative to Ethereum. Solana was first opened to the public in March 2020, with its first block being created on 16 March 2020. The Solana blockchain was designed to support smart contracts and decentralized apps in particular. Large numbers of simultaneous transactions have contributed to several outages of the Solana blockchain. In June 2021, Solana Labs sold $314 million worth of its native cryptocurrency, SOL, to a group of funds led by Andreessen Horowitz and Polychain Capital. On 1 July 2022, a class action lawsuit was filed against Solana. The lawsuit accused Solana of selling unregistered securities tokens in the form of Solana from 24 March 2020, onward and that Solana deliberately misled investors concerning the total circulating supply of SOL tokens. According to the lawsuit, Anatoly Yakovenko, the founder of Solana Labs, lent a market maker more than 11.3 million tokens in April 2020 and failed to disclose this information to the public. The lawsuit claimed that Solana stated it would reduce the supply by this amount, but it only burned 3.3 million tokens. On 3 August, 2022, 9,231 Solana wallets were hacked and four Solana wallet addresses stole approximately$8 million from victims. The company stated that the hack was caused by digital wallet software from Slope Finance.