THE IMPACT OF INFLATION ON BLOCKCHAIN NETWORKS, UNDERSTANDING THE OUTLOOK FROM SOLANA

in LeoFinance2 years ago (edited)

Author: @madridbg, through Power Point 2010, using public domain images. Damián Di Pace


Greetings and welcome dear readers of this prestigious platform, through the following publication we will make a conceptual approach on the implications of inflation in the cryptoasset markets, using as a starting point the Solana network, so that we can address the performance of the same in terms of developing investments in the short, medium and long term.

In this sense, for no one it is a secret that the year 2021 was the one that allowed catapulting the currency associated with this network, since it presented a substantial increase equivalent to more than 8,866 % , growth that has led the cryptoasset to enter the top 10 of the best existing cryptocurrencies and preferred by users.


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Therefore, it is necessary to take into account that the Solana cryptocurrency is part of the third generation currency, hence many analysts consider that it could be assumed as the strong opponent for the Ethereum network, this due to the exponential growth that the Solana coin exhibited in the year 2021, hence, many investors are betting on accumulating this asset projecting that it will return to the historical maximums that at one point it reached.

Therefore, if we make a review we will realize that the network where Solana is based, allows a greater number of transactions in a much shorter period of time, where the commission costs are really low, aspects that have achieved popularity and adoption by users and developers.

Consequently, if we review the percentage performance of Solana we realize that in the last year, the currency has grown by more than 711%, and although the growth has been sustained, this type of asset is still presented as high risk, despite generating high rewards.


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Thus, the levels of uncertainty are still high and the protocols behind SOL allow for significantly reduced validations, both in transactions and smart contract execution, not to mention the mechanisms associated with the amount of processing and protocols associated with the NFT games that are being run under the structure of this network, due to the cheapness of its commission, as well as how intuitive, easy and friendly the network is for users and developers.

However, despite the aforementioned growth, problems are present, as the network has repeatedly gone into a pause or downtime process, equivalent to more than 7 hours, where according to its developers they assume that the network interruptions are caused by a significant increase in the number of transaction associated with bots used in the minting and staking of the games on NFT.


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Therefore, you are not going to how to have a substantial accelerated growth, the ideal behind each economic process is to achieve generates a greater number of capitalization, which allow to improve the scalability of data, security and efficiency of the network, as a mechanism aimed at minimizing the levels of uncertainty that is still handled among users who have invested or wish to invest in this type of digital business.


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1. The design of the portal was made by @madridbg, using public domain images