Where Does Solar Come From?
Once upon a time, there was a Swipe payment system, which managed to make a real revolution in the financial market and acquire influential partners and hundreds of thousands of users around the world for several years of its existence. Even such market giants as Binance and FTX used the platform’s services. The SXP token successfully functioned within the framework of the project, and its value steadily (naturally with a note on the volatility of the crypto market) grew. In July 2020, it became known that Binance had acquired the Swipe company. After a while, it was announced that Swipe is waiting for big changes — the launch of its own Solar blockchain. Solar has become a new round of ecosystem development — a community-driven and energy-efficient payment blockchain.
Solar Blockchain
Solar is a Layer 1 blockchain that focuses on decentralization and community involvement. Solar operates based on Delegated Proof of Stake consensus mechanism with 53 node operators, in other words, Delegates. Solar developers are adherents of the original idea of cryptocurrency creation, which is characterized by true governance, decentralization, openness, and security. So everyone can contribute to the development of the Solar ecosystem, share their opinions or make proposals for improving the system. The developers set an extremely ambitious goal — to become neck and neck with such market giants as Solana and Ethereum.
How Does Solar Work?
Solar utilizes Delegated Proof of Stake consensus algorithm, making the blockchain more eco-friendly, efficient, decentralized, and 51% attack resistant. 53 validators are responsible for the security and maintenance of the network. Delegates are selected by voting. By the way, users can vote for the Delegate directly in the Solar wallet. The main criterion when choosing validators is the weight of the wallet. The greater the weight of the wallet, the more chances a potential validator has to become a Delegate and start earning rewards. Delegates receive block rewards and transaction fees for their work. It is important to note that the amount of reward depends on the ranking of the delegate. An interesting fact is that Delegates can share part of the profits with their voters to encourage them.
Solar and Decentralized Finance
In addition to the fact that Solar is a peer-to-peer payment network, users can also use the additional Side Ledger Protocol feature to create decentralized applications and tokens, both fungible and non-fungible. The project developers have emphasized the ease and efficiency of creating tokens. So, even a newbie can create fungible tokens or NFTs directly in their Solar wallet or use a specially developed SDK. Developers using Solar to launch their tokens also benefit from low service fees. For example, the cost of creating brand new tokens is only 5 SXP.
SXP Deflationary Coin
To ensure the further prosperity of the ecosystem and the growth of the SXP value, the project team endowed the coin with a deflationary nature. They implemented a coin burning mechanism that is activated in several ways:
- Firstly, as mentioned earlier, developers of decentralized applications pay a certain fee for launching their projects. This amount doesn’t go to the Solar team but is immediately burned. Thus, the more users use Solar as a native platform for launching decentralized applications and tokens — the more SXP tokens are burned. In simple words, if Solar becomes a native platform for 5 million contracts, it means that 25 million SXP tokens have been burned.
- Secondly, the developers mentioned that they are actively working on creating a Solar Metaverse. So far, too little information is available, and the project team keeps users excited. But it’s not about that. It is essential that all SXP transaction fees that are used in the Metaverse are also burned.
- Thirdly, the project team is working on the development of a launchpad. Naturally, those wishing to place their project on the Solar Launchpad will have to pay a certain fee. From 10 to 1000 SXP, depending on the range of features used: whether it’s just a regular listing or fundraising. All fees received on the Solar Launchpad are also burned.
Final Thoughts
Solar offers a simple and efficient environment for developers of decentralized applications. The blockchain is fully decentralized and community-driven, allowing each community member to participate in the development of the ecosystem. Of course, how the project will develop depends on the success of the goals set and the launch of the features described earlier. But we can say with confidence that with Binance at the helm, the success of Solar is assured.
