Solar

About Solar

Solar is a blockchain network that operates on a Delegated Proof-of-Stake (DPoS) consensus mechanism, featuring 53 block producers chosen to confirm transactions. This platform’s currency, formerly known as Swipe and now rebranded to Solar, is recognized by the symbol SXP. These block producers play crucial roles in upholding the network by generating and validating blocks, engaging in governance votes, and ensuring transaction integrity. The Solar blockchain stands out for its remarkable speed, executing transactions in roughly 8 seconds, alongside boasting high levels of security, sustainability, and energy efficiency. Positioned as a Layer 1 protocol, Solar addresses common blockchain challenges such as transaction speed, network scalability, and true decentralization.

History of Solar

Solar, a blockchain-based payment solution emphasizing sustainability, was initiated in 2018 by Joselito Lizarondo and Nayiem Willems. This duo is also behind Swipe.io, a notable cryptocurrency payment platform. Their vision for Solar, which officially launched in 2022, was to extend the capabilities of blockchain technology to facilitate eco-friendly payment systems globally. The transition from Swipe to Solar occurred after Binance acquired Swipe, leading to the establishment of the Solar Blockchain Foundation, a non-profit organization, to oversee the project’s development and rebranding efforts.

How Solar (SXP) Works

The Solar (SXP) network operates on a Delegated Proof of Stake (DPoS) architecture, a layer-1 blockchain design, secured by 53 block producers. Here’s an overview of how Solar functions:

DPoS consensus mechanism: Compared to Proof of Work and Proof of Stake systems, DPoS stands out for its efficiency, environmental friendliness, scalability, and reliability. In this system, token holders delegate their voting rights to select validators responsible for processing transactions and generating new blocks.

Adaptation from ARK: The core framework of Solar is derived from ARK, enhancing its security capabilities through the implementation of Schnorr signatures, which contribute to a more robust block production process. These advancements position Solar as a stable and effective platform for the development and deployment of decentralized applications (dApps).

Side Ledger Protocol (SLP): The SLP feature enables the creation and deployment of both utility and asset tokens, including fungible and non-fungible tokens (NFTs), on the Solar blockchain. This protocol is compatible with various programming languages and offers functionalities similar to established token standards like ERC-20, BEP-20, and ERC-721, facilitating a wide range of blockchain-based applications.

SXP Wallets

Solar’s ecosystem offers its users a variety of engagement possibilities through the Solar Wallet. This platform enables them to cast votes for block producers, stand as candidates for block production, and craft tokens within the Solar network. As of now, the Solar Desktop Wallet is the only option for storing digital currencies and engaging with the network. However, plans to launch Solar Mobile Wallet and Solar Browser Wallet are underway, which will broaden user capabilities to include token creation, blockchain exploration, and metaverse interaction from various devices.

SXP Metaverse and NFT Marketplace

Within the Solar project, an ambitious venture into a metaverse designed for social connectivity in both 2D and 3D is unfolding. This virtual cosmos is being developed with several key utilities in mind:

• Tools for crafting fungible tokens and NFTs on the Solar blockchain;
• A marketplace for artists and creators to sell digital items such as characters, furnishings, and artwork;
• Options to purchase, customize, and enhance spaceships using SXP coins;
• The creation of global challenges and puzzles, inspired by real-world treasure hunts like Cicada 3301;
• Capabilities for users to develop dApps that interact with the SXP blockchain;
• Special access to exclusive events with celebrities and influencers;
• A system to burn SXP coins as transaction fees within the metaverse.

The forthcoming NFT marketplace is anticipated to be a hot spot for creators and collectors alike, offering functionalities akin to those found on OpenSea. It will enable participants to trade their NFTs, either through third-party platforms or directly via the nascent Solar marketplace, which is currently in development.

Pros and Cons

The Solar blockchain is uniquely designed to facilitate the easier and more cost-effective creation and deployment of NFTs, fungible tokens, and decentralized applications (dApps) compared to traditional blockchain environments. While established blockchains might deter users with high costs and complex development prerequisites, Solar emerges as a user-friendly alternative offering notable advantages.

Advantages of Solar:

User-Friendly Design for Creators: On many blockchains, the technical and financial barriers to creating NFTs and dApps are significant. However, Solar simplifies this process, allowing creators to develop directly within their Solar wallet or through an SDK, making it more accessible to a wide range of creators, regardless of their technical expertise.

Affordable Launch Fees: The expense of launching tokens and dApps on certain blockchains can be exorbitant, but Solar provides a more economical path. Launching tokens on Solar incurs minimal fees, with the cost to create a new token set at only five SXP coins, broadening access for creators.

The Deflationary Nature of SXP: Solar introduces a deflationary token model, where fees for launching tokens are systematically burned, reducing the overall supply of SXP as the usage of the platform increases. This burning mechanism extends to transaction fees within Solar’s emerging Metaverse and Launchpad, further accentuating the coin’s deflationary aspect.

Limitations of Solar:

Despite its innovative approach, Solar is not without its limitations.

Block Processing Speed: While Solar’s eight-second block submission time outpaces many mainstream blockchains like Ethereum and Bitcoin, it does not claim the fastest speed, with networks like Solana leading in this regard.

Pending Feature Releases: Although Solar launched in March 2022 with foundational features like the Solar wallet, core infrastructure, and Side Ledger Protocol (SLP), key components such as the NFT marketplace, Metaverse, and Launchpad are still under development. The full potential of Solar will be realized as these features become operational.

Investment Perspective on Solar (SXP)

The limited supply of SXP, compounded by the network’s token burning strategy, suggests a deflationary trajectory as more digital assets are created and more transactions occur, potentially driving up the coin’s value. SXP can be acquired through exchanges or earned by Delegates, who can also distribute tokens to promote blockchain engagement. This creates opportunities for users and Delegates to obtain SXP without direct purchase. The deflationary pressure, combined with the anticipated utility of SXP for creating tokens and applications, may present a compelling investment case.