A Comprehensive Guide to Solana Blockchain Token Development
written by Nitin Garg | Dec 23, 2022
Over the past couple of years, we have noticed a surge in blockchain development. Many startups and established businesses have started using blockchain technology in their business to bring transparency and install decentralized systems. Speaking of blockchain, Solana tokens are gaining immense popularity these days. While many blockchains are prevailing for crypto tokens such as Ethereum, Tron, BNB Chain, Solana etc.
The Solana blockchain platform has been attracting the attention of a lot of entrepreneurs for building decentralized finance applications, smart contracts and non-fungible tokens. Solona token has received a market capitalization of roughly $59.3 and ranks as the sixth-largest cryptocurrency market. Solana blockchain network offers developers the support to develop highly scalable applications and quick transaction processing times.
Just like Ethereum, Solana requires no centralized database to deploy an independent digital ecosystem or asset. Most enterprises hire a Solana blockchain token development company to get high-performance and feature-rich token development.
You must be wondering how Solana is better than Ethereum and how we can create a Solana token. Don’t fret, in this blog, we will cover all the aspects of Solana blockchain token development.But before we deep dive into the same, let’s first understand the basics surrounding it.
Table of Contents
Solana Blockchain- Market Overview
Founded in 2017, Solana is a blockchain platform that is primarily built to process decentralized and scalable application development. The crypto asset based on the solana platform is traded as SOL Or SOLUSD. As per the market research, Solana blockchain development had a capitalization of more than $66 billion, which also made it the fifth largest cryptocurrency market in the world.
The main reason behind the growth and efficiency of the Solana blockchain development solutions are proof-of-stake methodology and the trending proof-of-history protocols. Moreover, the market cap of the Solana blockchain connected with decentralized finance grew by 400 per cent in the summer of the year 2021. The performance of the Solana blockchain token is impressive and is seen as the direct competitor to Ethereum, which can power decentralized applications in a much more effective manner.
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Just like Ethereum, Solana is a type of blockchain network, which is increasingly used to create crypto tokens. Most investors use the Solana blockchain network to develop a variety of things such as Defi, Dapps, tokens and NFTs. Solana token development is becoming mainstream due to its plentiful benefits and cost-effective nature. Many startups and established entrepreneurs develop Solana tokens at affordable prices and then later utilize them as utility tokens that serve multiple purposes in the cryptocurrency market.
Many people get confused between Ethereum and Solana blockchains, and often ask for the difference between Ethereum blockchain and Solana Blockchain. To give you a clear picture, here we have listed all the points, explaining the distinction between these two blockchain networks.
What Makes Solana Different from Ethereum?
The major difference between the Solana blockchain and the Ethereum blockchain are:
A major disadvantage of the prime blockchain development platform Ethereum is the congested networks. This means the platform is unable to handle a large number of transactions. While Solana blockchain token helps users to process a large number of transactions in a matter of few seconds and that too with lower transaction fees.
Solana blockchain token development has gained a high market value in the cryptocurrency space. Ethereum is also famous but due to its congested networks, people nowadays prefer Solana based tokens.
Solana token can handle 50,000 transactions per second, while the Ethereum blockchain token can handle only 15 transactions per second.
Ethereum charges high when it comes to transaction fees. On the other hand, Solana token development is much more profitable as it charges around $0.00001 per transaction, which is way too less and affordable.
Solana tokens are much more sustainable when compared to Ethereum.
Solana is developed after Ethereum, and hence it seems to have $1.5b Defi TVL. while Ethereum is considered to be a home for Defi.
The transaction speed of the Solana token is much more than that of Ethereum.
Ethereum works on a Proof-of-work mechanism while Solana follows the most effective and energy-saving method of Proof-of-Stake.
Popular Solana Blockchain-Based Tokens
A. Tether (USDT)
Tether is widely known for converting cash into digital currency. The platform reflects the value of the price of multi-national currencies like the Euro, US dollars, Rupees and many more. Tether helps to send, store and receive digital currency across different exchanges, platforms or wallets.
B. Solana (SOL)
Solana token is a blockchain-based token that is also a highly functional open-source project, offering decentralized finance solutions. It works on proof-of-history and proof-of-stake concepts that facilitate the development of Dapp, smart contracts and NFT token development.
C. Terra (LUNA)
Terra makes stablecoins available on each blockchain. With the help of anchor protocol, terra stable coin generates stable yields with leading proof-of-state blockchains.
D. Ren (REN)
Ren is a decentralized and permissionless virtual machine protocol that allows cross-chain exchanges, lending, and collateralization. It is backed by a network of machines, also known as darknodes to generate great rewards for providing storage space and computing power.
Solana tokens are becoming highly popular among different industries. You can create your own Solana network with the help and guidance of a Solana blockchain development company. Here are some of the most important features that you must take care of while creating your own Solana token.
1. Proof of Stake
Solana blockchain allows users to stake SOL coins in a similar manner to that in Ethereum which helps users to quickly do the transactions in the faster and safest manner.
Solana blockchain tokens are optimized to manage, control and maintain digital identity and transactions through blockchain technology.
3. Proof of Ownership
Solana blockchain tokens contain crucial information and details of each transaction that can help you display the full record of your digital asset. This also helps you show proof of ownership.
4. Exchange Value
Being a widely popular network among entrepreneurs worldwide, Solana tokens offer high exchange value to digital assets that can be traded across multiple platforms.
5. Digital Collectible
Solana tokens can be well-optimized and used as collectable currency for various purposes. The value of a token is unique, and original and can be destroyed by any means.
Solana blockchain tokens are interoperable, which means multiple projects can be connected through a single network. The concept of interoperability allows users to use existing digital assets and build new applications of defi from the same.
7. Increased Governance
Solana software development allows users to have more control over the entire infrastructure. Solana tokens offer a high amount of governance and management over digital assets.
Solana Blockchain Token Development- Step-by-Step Process
Solana token development is not an overnight task and hence requires a set of stages to create a safe, high-performance and reliable Solana token. It is advisable to hire a Solana blockchain developer to get a ready-made Solana token that too of high value. Here is a step-by-step guide-
1. Market Research
Before developing any software, app or even a token, it’s advisable to do proper market research to know how well you can penetrate the market. Make sure to do a Swot analysis to know the market threats and opportunities. Besides that make sure to notice your competitor’s strategies and USPs in detail to make your Solana token cut above the rest. Research well on the popular types of Solana tokens to know the clear differentiation between the Solana token you are providing and already existing ones.
2. Decide Its Features
Make sure to define the features and functionalities of the Solana token. If you are not that much familiar with crypto tokens and blockchain technology, hire a Solana blockchain development company, offering best-in-class Solana tokens at their best. Make sure that your Solana token reflects and conveys security, interoperability, proof of ownership, and accessibility.
3. Setting Up a Crypto Wallet
Another step is to integrate a crypto wallet. As there are numerous crypto wallet development companies out there in the market such as web wallets, mobile wallets, paper wallets, hardware wallets, desktop wallets, etc. For accessing a wallet, each individual has given a private and public key. A public key is like a wallet address that is used to transfer and receive crypto tokens. Whereas, on the other hand, the private key is almost like a password that is used to access a crypto wallet.
4. Creating Solana Blockchain Token
This is the phase where you actually develop Solana tokens. Either you hire an experienced and renowned Solana token development company or you have the technical expertise to develop a full-fledged Solana blockchain token. Make sure that you don’t leave any room for errors or glitches that may contribute to development or performance risk.
5. Testing and Quality Assurance
It is important to do proper testing and quality check to ensure the seamless performance of the Solana token. Testing is the best way to ensure that the platform is bug or error-free. This will increase user credibility and reliability.
6. Deployment and Maintenance
It’s time to launch your Solana token into the market after you have conducted proper testing. Even after the launch, make sure to check the regular updates, market reviews and performance of the Solana token.
Are you wondering about the Solana token development cost? Well, that depends on various factors. Hence, it is nearly impossible to define the exact cost of developing the Solana blockchain token until and unless we don’t know your token specifications and features. The cost may vary from region to region and business requirements. Here is the list of factors affecting the cost of Solana token development.
The complexity of the features
The location of the developer
Experience of Solana token development company
Solana token development platform
On average, the cost to develop a Solana blockchain token with basic features and functionalities is around $10,000 to $12,000. The cost may shoot up depending on your blockchain token specifications or features.
We hope by now you might have received all the information you were looking for Solana blockchain token development. Solana tokens are becoming quite famous and mainstream in the cryptocurrency ecosystem. Due to its faster transaction speed and low transaction fees, the Solana token is becoming the center stage for most entrepreneurs and business owners to make huge profits. We offer top-notch, scalable and highly reliable Solana blockchain token development services that are hard to find.
I am Nitin Garg Founder of BR Softech PVT LTD - an Award-winning, app, web & game development company. We are armed with 180+ geeks & 2753 clients worldwide, I have driven by the spirit of entrepreneurship and dream to build a billion-dollar-company.
BR Softech Pvt. Ltd. excels in providing cost-effective IT Solutions. Established in August 2012 with over 10+ years of rich experience. An Apex rated IT serving company around the world. Our team of innovative and creative designers deals in web designing, and mobile game/software development intending to deliver outstanding digital outcomes.