Exploring the Potential of Solana Smart Contract Development

In 2017, Solana came into existence with an aim to address scalability issues in the existing blockchain space. Solana emerges as a high-performance, permissionless blockchain that offers fast, cheap, and scalable transactions. These features are attracting several businesses to step into creating Solana smart contracts, also known as Solana programs.

Let's understand the emerging potentials of Solana smart contract development for blockchain-based solutions.

Understanding Solana

Solana is a decentralized blockchain platform designed to avoid congestion and scalability issues in the existing blockchain space. The prime functionality of the Solana blockchain focuses on scalability improvements, such as higher transaction per second (TPS) and fast confirmation time.

Moreover, it is an open-source platform comprised of technologies such as Intel, Netscape, Google, and Qualcomm. These technologies help Solana in balancing high-performing standards. 

Check it Out: Why to Develop DApps on Solana

Exploring Smart Contracts on Solana

Compared to conventional EVM-based blockchains, Solana offers a distinct smart contract approach.

In EVM-based chains, contract code/logic and state are merged into a single contract for on-chain deployment. Whereas a Solana smart contract (or program) is read-only or stateless and consists solely of program logic.

External accounts can use smart contracts after their implementation. These accounts communicate with the programs to store data related to program interaction. In this way, the logical separation of state (accounts) and contract logic (programs) occurs.

It is a key distinction between Solana programs and smart contracts based on EVM. Accounts on Solana and Ethereum share differences. Solana accounts, unlike Ethereum accounts, which are pointers to people's wallets, can store data (including wallet information).

In addition, Solana comes with a CLI and JSON RPC API to enhance DApps’ interaction with Solana. Moreover, decentralized applications can also use existing SDKs to interact with the blockchain and programs on Solana.

Solana offers CLI and JSON RPC APIs to communicate with decentralized applications (dApps). They can also take advantage of an existing SDK, which enables clients to communicate with Solana and its programs. 

See how to Develop NFT on Solana

Pros of Developing Smart Contracts on Solana

Here are some of the benefits of smart contract development on Solana.

• Better Returns per Transaction: A platform will not face gas pricing or a limit on the Solana blockchain. As a result, the platform owner should expect a better return on each transaction.
• Customization: There is a provision for customization in Solana smart contract solutions by a smart contract owner for specific requirements.
• High Security: The Solana network ensures high security for smart contract development.
• Scalable DeFi Solutions: By leveraging Solana smart contracts, developers can create fast, scalable DeFi (decentralized finance) applications.

Also, Explore | Simplicity: For Creating Highly Promising & Sophisticated Smart Contracts

Advantages of Solana Smart Contracts

The following are the main advantage of choosing Solana smart contracts: 

• Increased efficiency and speed: There is no requirement for real-time communication between Solana nodes. Solana needs 400 milliseconds to mine a block, but Ethereum needs 10-15 seconds.
• Less bandwidth: To speed up the transport, data is divided into smaller packets within the Solana network.
• Increased Scalability: Layer 2 solutions are not required for Solana developers to scale the network core.
• PoH: For each transaction, Solana generates a timestamp. It keeps a history record using a cryptographically secure function. With this, the common issue of timing agreement in distributed ecosystems is resolved.
• Requires Lower Prices: Since October 2021, the average transaction fee on the Solana blockchain has been around $0.00025. The gas costs on Ethereum can reach 10% of the transaction value. In addition, they vary greatly, ranging from a few cents for a regular transaction to $250 for an NFT buy.

Additional Advantages of Developing Solana Smart Contracts

Solana is a popular choice among smart contract developers for several reasons. In addition to the faster speed, this environment provides:

• Low Transaction Costs: Transaction costs are low because of PoH and Turbine. The network will now be under less strain due to smart contracts. It makes it great for those who create and trade NFTs.
• Customization: To suit their demands, developers can modify new smart contracts.
• Programming Languages: Solana uses Rust as its programming language. Creators do not need to understand any proprietary for writing smart contract code. Rust is suitable for new blockchains, games, and even marketplaces.
• Sustainable Growth: Unlike Bitcoin and Ethereum, Solana does not employ proof-of-work (PoW). Its agreement process utilizes 99.9% less energy.

Explore: Ethereum Smart Contract Development | Discovering the Potential

Conclusion

More and more industries are adopting blockchain technology and the graph of decentralized apps continues to grow. In addition to high-speed, scalable, and low-cost transactions, Solana empowers the development of fast and scalable smart contracts. As a matter of fact, smart contract development on Solana is the hottest topic in the blockchain world.

If you are planning to develop a project on Solana, feel free to connect with our Oodles blockchain experts.