Burnt Finance is a protocol that is built on top of the Solana blockchain platform. It is completely decentralized and can support auctions built on the same principle of decentralized workflows. Burnt Finance interested investors from Alameda Research and some other cryptocurrency funds. In May of this year, the protocol managed to raise about $3 million in investment from these interested companies.
Applications that are built on the principles of decentralization (dApp) are used in various digital areas: individual games are built on them, entire gambling platforms in the form of casinos, and various types of independent financial projects.
A frequent problem, in this case, is not always the high bandwidth of the Internet network. Ethereum is the most popular blockchain platform that supports dApps, but the high load associated with the activity of a large number of users causes speed problems and also drives up transaction prices.
To improve application performance, developers launch new projects. The Solana platform is characterized by open source and also makes a good impression on users with the speed of smart contracts execution and transaction processing.
The blockchain platform, which was launched in 2020 by Solana Labs, sees as its ultimate goal a solution to a triple problem - to create a decentralized network that will simultaneously:
The choice of NFT holders in favor of Solana is also due to innovative technologies that distinguish this blockchain platform from competitors.
In this case, Solana combines two algorithms: (PoH) - Solana Proof-of-History, developed specifically for this platform, and already known (PoS) - Proof-of-Stake. In the first case, the individual communication nodes that form the blockchain in the network operate independently of each other but are synchronized as necessary to ensure security for users.
This synchronization allows the network to simultaneously support thousands of node computers, increasing throughput proportionally. Solana does not use side chains or para chains, maintaining a single chain. Thanks to Proof-of-History, nodes can synchronize the temporal order of events in the chain, while not having to exchange data with each other.
Synchronization of nodes is an important process that significantly reduces the throughput of the blockchain. For example, Bitcoin can perform no more than 10 transactions per second, while using Proof-of-History, the Solana platform achieves synchronization many times faster.
Practical Byzantine fault tolerance (pBFT), which was optimized specifically for the Proof-of-History algorithm. It is a modified version of the Proof-of-Stake consensus algorithm. It can be said that the Solana platform mainly works on PoS, but at the same time uses the Proof-of-History proprietary “decentralized clock” mechanism in its work.
This makes it possible to reach a consensus between the nodes without spending resources on searching for timestamps of previous operations, as well as sending messages between all participants in the blockchain.
Thanks to this protocol, transactions are forwarded to subsequent crypto-validators even before the completion of the previous group of transactions. At the same time, they are not transferred to the confirmation waiting list (mempool).
As a result, this increases the speed of the validators and has a positive effect on the size of the blockchain itself and the mentioned list of transactions for verification.
turbine
This protocol allows you to split the array of data on ongoing operations into several parts, which also significantly increases the performance of the platform as a whole.
Solana is a young, but already quite popular and promising project, which managed to attract the attention of some investors and has good prospects for development in the future. This blockchain platform is great for decentralized applications that involve a huge number of users at the same time, as well as other systems and projects that require significant resources.
These include the Galatic Marketplace NFT marketplace by Star Atlas, the Degenerate Ape Academy project, and other projects. In the second case, a collection of 10,000 unique pictures was sold out in just 8 minutes. Trade was conducted through the Solanart platform. Now the heroes of the collection are sold only on the secondary market, they can be purchased, for example, on OpenSea, an open token marketplace. Individual Degenerate Ape Academy characters are already valued at more than 100,000 SOLs—nearly $7 million in today's exchange rates.
