Almost a quarter-century back PayPal changed the way people made payments by transforming the payment processing industry. It facilitated instant payments among businesses, customers, using the internet.
The future innovation in payment processing is expected from Solana (SOL) by many. It could facilitate payment taking NFTs into account. Experts have even called the payment protocols from Solana the PayPal or Visa of the crypto world.
Breaking down Solana Pay and its work will give an idea of its workings and if it is worth the hype surrounding it.
Understanding The Workings Of Solana And Solana Pay
SOL was created in 2017 by software engineer Anatoly Yakovenko who had previously been with high-tech companies like Dropbox. He believed that though other blockchains remain efficient or move towards efficiency, a large number fail to consider one vital factor, time.
Normally in blockchains, instead of each block being dependent on one standardized clock, every block is dependent on the local time of its relevant node.
This poses a problem as due to the lack of any standardized clock, there is a variation in transaction timestamps for every individual block. The confirmation time is a different factor that needs to be validated by all nodes.
Thus, the more factor that requires validation by a node, the slower is the final transaction time.
But on Solana, every node runs on a single clock. It removes one factor of validation and as a result, quickens the network. Yakovenko talks about such a consensus technique as PoH (proof of history). It is an advanced version of PoS that considers time for purposes of verification.
Validation also is similar to PoS in Solana. It uses time as a historical proof record atop the PoS method. This allows it to process 65,00 transactions on an average in each second with nominal fees.
Solana Pay, the digital payment platform gives customers and businesses immediate transactions that are fee-free that have zero environmental effect.