Buy Solana in Delaware

Even though legislators often don’t see eye-to-eye with new technology, that is not the case with Delaware. Being crypto- and blockchain-friendly, the First State has passed a few legislations that confirm this industry has a bright future there. One such bill has legalized blockchain-based stock trades.  

Like the other states in the US, Delaware has legalized the use of cryptocurrencies. However, crypto enthusiasts can only trade Solana and other coins on regulated exchanges. Fortunately, there is plenty of them across the US, and the majority of them operate in the First State.

In this piece, we’ll discuss where you can purchase SOL tokens, and we will show you exactly how to do it. But before that, let’s take a deep dive into what Solana is, who created it, and what makes it unique. You need to be familiar with all those things before you make any investments. 

What Is Solana (SOL)?

Aside from being a cryptocurrency, Solana is an open-source network that supports smart contracts, such as NFTs and a variety of DApps. It was founded in 2017 by Anatoly Yakovenko, Raj Gokal, Greg Fitzgerald, and Eric Williams, but it wasn’t launched until 2020. 

Its main goal was to solve high costs and slow transaction speed that other blockchains struggled with. Solana has succeeded in these endeavors, and it now boasts 65,000 transactions per second and a transaction fee under $0.01. 

Solana’s ecosystem is massive, with countless NFTs, Web3 apps, and DeFi projects flourishing on its platform. In 2021 alone, the number of projects skyrocketed from 70 to 5,100. Some of those include Serum, Audius app, Arweave blockchain, and many others. 

Solanas Distinctive Features

Solana’s hybrid consensus model that includes both PoS and PoH, as well as innovative mechanisms, is what keeps this network up and running. Here are its key features:

  • Proof of History (PoH) — Yakovenko wanted to create a historical record that would accelerate the network without affecting decentralization. That’s how Proof of History was born. Unlike PoW and PoS used by other blockchain-based networks, Solana’s new and unique mechanism proved to be much superior. This mechanism cryptographically verifies the passage of time between two events and keeps a record of them. It assigns a timestamp to each transaction or event along with the data structure. Thanks to it, Solana boasts of processing up to 65,000 transactions per second. Furthermore, all validators have their own cryptographic clocks to keep track of events and do not rely on one another to verify transactions. In turn, this makes the network more effective and increases transaction speed.
  • Tower BTF — On top of PoH, Solana runs on a consensus mechanism called Tower BTF. This mechanism resembles a PBFT consensus (Practical Byzantine Fault Tolerance) and keeps the network running smoothly. It also uses the PoH’s cryptographic clock to achieve network transaction consensus. 
  • Turbine — Solana employs a distinct protocol known as Turbine to transmit blocks between validators without relying on consensus. The protocol divides data into smaller chunks so that nodes can transfer data more easily. As a result, Turbine helps Solana address bandwidth issues and improve the network’s transaction processing speed.
  • Gulf Stream — Gulf Stream uses the mempool concept as a waiting room for the next trade, enabling transactions to be validated prior to the trade taking place. Consequently, network validators can execute transactions ahead of time, reducing confirmation times and memory demands on validators.
  • Sea Level — This is a feature that has never existed before on any blockchain network. Sea Level refers to validators’ ability to run smart contract code simultaneously. This feature enables multiple transactions on one chain, which allows the network to run faster.
  • Cloudbreak — This memory mechanism aims to keep track of participant balances. 
  • Solana cluster — Clusters are groups of validators that serve different purposes, but their main work is to process client transactions. Solana claims that clusters can coexist, and when two clusters share a common genesis block, they may converge.
  • Pipelining — Pipelining is a CPU design technique that entails routing input data to different hardware pieces for processing. This allows faster replication and validation of transactions across network nodes. 
  • Archivers — The data storage function is entrusted to a network of nodes called Archivers. They do not participate in consensus meetings.

SOL Token Explained 

The Solana blockchain has its native token, SOL. It provides network security through staking and is also used for payment. 

By staking your SOL tokens, you contribute to the network’s security and earn rewards at the same time. You can do it by delegating your coins to validators in charge of running the network and processing transactions. Your reward will be proportionate to the period during which your tokens are pledged.

Moreover, the more stakes are assigned to a validator, the more often that validator is chosen to write new transactions into the ledger. Validators whose systems can process more transactions earn proportionately greater rewards. This is also because they keep the network running fast and smoothly.

Solana in Numbers

Despite being a new crypto on the block, Solana has been ranked among the top ten cryptocurrencies. Its market cap exceeds $17 billion, and the entire supply of circulating tokens goes over 339 billion. Plus, there is no maximum supply for this token. 

Solana is an inflationary crypto with an annual inflation rate of $8. This rate will decrease each year by 15% until it reaches the fixed rate of $1.5.

In the months that followed SOL’s launch in March 2020, its price fluctuated between $0.50 and $1.50. SOL’s price reached $55.91 by May 2021, making it one of the top-performing cryptocurrencies. After plunging as low as $23.49 in July, its price spiked again by November, reaching a record high of $258.93.

Crypto Laws in Delaware

The popularity of blockchain technology investments has grown dramatically in recent years, and Delaware is among the states that want to stay in the loop. 

In 2017, the Delaware Governor signed blockchain-related provisions into law. They were passed with the aim of amending several sections of the Delaware Corporation Law (DCL). This legislation has allowed Delaware corporations to use blockchain technology to create and maintain corporate records. This also refers to corporations’ stock ledger. 

Furthermore, the Delaware Governor signed Senate Bill 103 into law in 2021. This bill defines virtual currency as property. It is seen as a digital representation of value, used as a medium of exchange that doesn’t have a legal tender status in the US. If the virtual currency owner doesn’t put any interest into it for five years, it is presumed abandoned and has to be reported as unclaimed property.  

Where Can I Buy Solana in Delaware?

When it comes to purchasing Solana, Delawareans have the same options as the residents of other states. They can buy SOL coins via a centralized crypto exchange or from another SOL owner.  We’ll touch upon both, but since the former method is safer, we’ll cover it in great detail. 

Centralized Crypto Exchanges

There are two types of exchanges where Delawareans can buy, sell, and trade Solana — centralized and decentralized ones. 

The former act like mediators between buyers and sellers, and they are the safest way to purchase any crypto. These platforms are owned by companies that are responsible for your holdings. They need to have a valid license to operate, and, unlike decentralized crypto exchanges, they usually require their clients to go through the KYC process. Gemini, Kraken, Coinbase, and Binance are among the platforms where you can purchase Solana. 

There are many CEXs, and they all differ to an extent. This is why you need to take into account the following factors when choosing the perfect exchange:

  • Availability in Delaware — The primary aspect of a crypto exchange is its availability in Delaware. Generally, most popular exchanges work across the US, but it’s always a good idea to double-check.
  • Solana support — The more tradeable cryptos an exchange offers, the better it is. You should also find out what other cryptos besides Solana are available. 
  • Security and privacy — Take the time to ensure the exchange is as secure as possible. Check whether it uses advanced encryption and firewalls to protect your financial information.
  • Overall reputation — In today’s online world, reputation means everything. Googling each exchange, reading reviews, and looking at customer feedback can tell you more about its reliability.
  • Fees — Exchanges impose various charges. Some have a flat fee, while others take a percentage of your trade. Furthermore, they differ depending on whether you’re a buyer or seller. However, most exchanges charge a transaction and a conversion fee.
  • Limits — Some exchanges limit the volume of trades you can make during a specified period. Consider this before opening an account.
  • Liquidity —  Liquidity is essential for faster transactions because it prevents price volatility. Additionally, check to see if the price is locked in, as this guarantees that it will remain unchanged at the time of the transaction. Since liquidity varies among trading pairs, choose the exchanges with the highest trading volume. 
  • User interface — The user interface should be intuitive and straightforward, whether accessed on a desktop or a smartphone. An easy navigation interface and a good user experience will make the entire process easier, especially for beginners.
  • Payment methods — Crypto exchanges typically offer multiple payment methods, including debit and credit cards, bank transfers, and e-wallets. You’ll have an easier time making deposits if your preferred methods are available.

Buying Directly

Delawareans who are not interested in joining a CEX and going through its verification process have the option of purchasing SOL coins from another owner. On the one hand, this is an easier and more affordable alternative, as there are no fees that exchanges usually impose. On the other, it is not that safe.

You’ll have to be super cautious when it comes to exchanges like this. First, you need to research and get familiar with the SOL token. Then, you need to find a person you trust to perform the trade. This is why it is better to conduct such transactions via CEXs, as they are more secure, and you have no way of knowing whether the other person has good intentions. 

How to Buy SOL on an Exchange — Step-by-Step Guide

All exchanges have the same basic procedure for buying SOL and any other coin. If this is your first time doing it, here are some instructions on how to proceed:

  1. Pick a wallet — You need a wallet for storing and securing your SOL coins. The safest choice is to use one of the supported wallets at the official website of the token of your choice.
  2. Choose an exchange — You can choose one of the exchanges we’ve talked about earlier or find one that works for you. Just make sure you have picked the one that covers all the important aspects we’ve discussed.
  3. Register an account — Provide all the necessary documents, such as your name, an official government document, and proof of address.
  4. Fund your account — You can deposit money with one of the available methods after comparing fees and exchange rates.
  5. Purchase SOL — Deposit the amount of money you wish to exchange for SOL coins into your account. Note that transaction and conversion fees will apply.
  6. Withdraw SOL tokens to your wallet — Your Solana tokens have now been added to your exchange account. You can leave them there, or you can withdraw them to your wallet as a security measure, depending on what you intend to do with them.

Final Thoughts

Solana is currently one of the most promising and well-worked-out solutions on the market. The fact that it has adopted the new PoH protocol and demonstrated strength in various aspects, such as technological innovation and the development of a community ecosystem, only shows that this crypto is on the right track. However, since Solana is in its early days, it is worth tracking its future development to see which way it goes.

We hope this guide has helped you understand what Solana is and where you can obtain its token. Now, you should conduct your own research, read some reviews on the internet, and follow the trends on the market to decide whether it is a worthwhile investment.

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