When it comes to non-fungible tokens (NFTs) and decentralized finance, Solana blockchain has quickly become one of the most talked about blockchains in the world (DeFi).
Solana NFTs, in particular, are becoming increasingly popular, and the cryptocurrency itself is presently listed as the fourth most popular in the world.
Solana satisfies the needs of its users by providing platforms with faster and cheaper transaction speeds.
Thus, many market leaders plan to or have already implemented Solana integration. Increases in the number of available integrations also contribute to a rapidly growing user base for Solana.
Solana NFTs are one of the most noteworthy developments in Web3 in this regard. However, getting started with new blockchains and NFT markets can be intimidating.
Fortunately, nft is now here to help. Everything you need to know to enter the Solana ecosystem is laid out in this guide.
In this article, we’ll explore Solana in detail, explaining what it is, how it operates, why it’s important, and how you may make the most of this exciting new world of cryptocurrency and NFTs.
What Is Solana Blockchain?
Solana is an open-source, public blockchain. Its native coin is SOL, designed to support various scalable decentralized applications (dApps).
Like the world’s other most prominent blockchains, Solana allows smart contracts.
This is of the utmost importance, given that NFTs are issued and sold using smart contracts, which assign ownership, grant users access to digital assets in the NFT, etc.
Anatoly Yakovenko founded Solana in 2017, intending to address the high transaction costs and sluggish transaction speeds that limit the scalability of existing blockchains, such as Ethereum and Bitcoin.
Initially, blockchains could only execute approximately 15 transactions per second (TPS). In contrast, major credit cards could process about 65,000 TPS.
In addition, users must pay transaction fees for every transaction attempt on a blockchain when blockchain networks get crowded.
These costs can skyrocket during a significant NFT launch to hundreds of dollars. Solana was designed to address both of these problems, and it did so.
Solana’s TPS is now faster and more scalable than Visa’s and Mastercard’s, making it a frontrunner in the industry. The cost of Solana is really low, too.
Solana’s transaction price is only a fraction of a penny, but Ethereum’s hefty fees make it difficult to utilize for those who don’t have a high-risk tolerance to participate in NFT trading.
As a result, Solana has become one of the most widely used cryptocurrency ecosystems. The fully diluted market valuation for SOL as of this writing is almost $67 billion.
How does Solana Blockchain work?
At its heart, Solana’s scalability solution is a decentralized clock called proof of history. It addresses the timekeeping issue in dispersed networks with no central, trustworthy time source.
PoH allows every node to independently construct SHA256-computed timestamps using verifiable delay functions (VDF). In doing so, we increase network efficiency by not wasting bandwidth broadcasting timestamps.
The flexibility to scale up is a major benefit of SOL. Solana can handle more than 700,000 transactions per second.
High-frequency traders are particularly interested in its high throughput capability. Serum, developed by the same people who brought you FTX, was the first application to use Solana’s DeFi capabilities.
What is Solana Blockchain used for?
Similar to Ethereum, Solana is a multipurpose blockchain. Since its applications are written in Rust rather than Solidity or Vyper, its technical foundation is distinct.
User use cases incorporate non-fungible tokens (NFTs), marketplaces, gambling, and decentralized finance (DeFi).
Solana’s native cryptocurrency, SOL, is used for staking and transaction fees.
Getting a Solana wallet
You can choose from various wallets to store your Solana cryptocurrencies and NFTs. However, you should find out who has access to your information.
You may wish to use a wallet like Phantom, one of the more popular non-custodial wallets, if you prefer to be the sole custodian of your SOL wallet.
Your private keys will be accessible only to the wallet provider if you use a custodial wallet. No one but you can access your information, NFTs, and assets when using a non-custodial wallet like Phantom.
Buying, selling, and storing NFTs and tokens on the Solana blockchain is simplified using Phantom’s user-friendly interface.
To create a Phantom wallet, visit the app’s official website. To set up your wallet, follow the instructions corresponding to your browser of choice. If you value your privacy and security, give Brave a try.
You’re not stuck with that one choice, though. There is a good chance that you should stick with what you know at this point if you are just starting off.
After that, if this is your first time using Solana, choose “create new wallet.” If you’re familiar with the Ethereum blockchain and the Metamask application, you’ll recognize that Phantom will provide you with a similar secret recovery phrase. In other words, saying this phrase will unlock all of your cash and other valuables.
Do not give it to anyone or tell them where you kept it. If you’re worried about the security of your smartphone, you shouldn’t download it either.
Your SOL crypto can be moved into Phantom at this time. To achieve this:
- Enter your Phantom wallet and go to “deposit SOL” or “receive” to locate your wallet address.
- Select the “send / receive” option on your chosen exchange now.
- Make your choice of SOL transfer amount and click “send now.”
Instantaneous processing of the transaction is expected. With MoonPay, you may use your credit or debit card to buy SOL right from your Phantom wallet.
In addition, once you have your wallet set up, you may pin it to your browser’s tab bar for quick access.
Solana NFT marketplaces
Even today, Ethereum is the most widely used blockchain platform. This is why it is home to most of the world’s leading NFT exchanges.
However, as was previously said, Ethereum’s high energy costs, slow transaction times, and prohibitive fees are rapidly shifting user preferences.
Consequently, Solana NFT marketplaces are growing in popularity, and leading platforms like OpenSea are including Solana support.
Magic Eden, along with OpenSea, is one of the most widely used Solana NFT exchanges. Users can issue, trade, and purchase NFTs on the platform. If you don’t want to spend money listing your NFTs, this is a fantastic marketplace to use.
Although there is no cost to list with Magic Eden, the company does take a 2% commission on all sales.
Degenerate Ape Academy, Aurora, and Solpunks are just a few of the well-known projects hosted on Solanart, another thriving marketplace. Every time an NFT sale is finalized, a 3% transaction charge is applied.
Solsea also exists, and it’s the first NFT marketplace that lets artists integrate licenses in NFT minting. Because of the uncertainty surrounding who, if anyone, owns the IP rights to the digital asset that is tied to NFTs, this is a huge step forward.
Some of the most well-known NFT initiatives, such as CryptoPunks, have been dogged by such concerns for quite some time.
There are alternatives to the Solana market, such as Solens and Formfunction (1-of-1).
What are the top NFT projects on Solana?
When compared to Ethereum NFTs, Solana NFTs are quite different in terms of practicality. Solana is a great chain for innovators to test out risky concepts because it doesn’t have the same high fees as Ethereum, and it demands developers to know a lot more difficult scripting language.
For instance, in DeGods, NFT holders can mine 10 $DUST every day by staking their NFT for a utility token. Once a DeGod is upgraded to a DeadGod, its owner gains access to daily $DUST mining rewards of $30.
Some outstanding PFP projects have also put extensive effort into developing robust communities that compete favorably with those found anywhere on Web3.
For instance, the owners of Solana Monkey Business (SMB) Generation 2 developed MonkeDAO, the first NFT DAO for Solana. The emphasis on community at MonkeyDAO is evident in the regular events and new initiatives it launches for its users.
How to create an NFT on Solana
Before you can create your very own NFT on Solana, you will need to set up a Solana wallet to pay the mint cost, which is required to mint the token properly.
Additionally, have another wallet address prepared so that you can send your newly-created NFT someplace. If you’re sending the NFT to yourself, you can create an additional wallet, but if you’re sending it to a friend, you’ll need to obtain the recipient’s address from someone else.
You must also ensure that you are connected to the Solana network and that your computer’s terminal and command line are configured.
Once everything is in place, the real work can begin!
First, you’ll need to settle on the genre of the NFT you’d like to create. That’s the simple part (and mostly intuitive). The next step is to decide between making a 1/1 (one-of-one) and an edition. An exclusive 1 for 1 NFT. These are similar to paintings in that there will only ever be one. There is no hard limit on the amount of NFTs that can be included in each edition.
Having a set of qualities that can be randomly produced to ensure multiple levels of rarity and working with an artist to develop visuals may be necessary for bigger, generative NFT collections.
To proceed with minting your NFTs on the Solana blockchain, you can either write your own metadata JSON file, collaborate with a developer, or use a no-code alternative.
A variety of resources, including smart contracts and other infrastructure, are at your disposal to simplify the development and release of NFTs on Solana if you like to work independently. Solana’s website features a catalog of available NFT tools.