What is Solar (SXP)? All You Need to Know About SXP

IntermediateJul 04, 2023
Solar (SXP) is an open-source, layer-1 blockchain designed to facilitate decentralized payments, governed by a DAO and actively maintained by 53 delegates through a DPoS consensus model.
What is Solar (SXP)?  All You Need to Know About SXP

Introduction

Solar was created to enable decentralized payment based on the blockchain while offering developers an open-source network to build and launch their tokens (both fungible and non-fungible) with minimal transaction fees.

Solar is an energy-efficient, open-source blockchain network, governed by the community via a decentralized autonomous organization (DAO) and employs a Delegated Proof of Stake (DPoS) consensus mechanism to secure and validate blocks. SXP is the native cryptocurrency of the network and will be used throughout the ecosystem to facilitate transactions, vote in governance, access Solar features and products as well as create tokens on the platform.

In this article, we will be discussing the Solar blockchain and what separates it from other layer-1 networks.

What is Solar (SXP)? A Decentralized Payment Network

Solar (SXP) is a fast, efficient, and open-source blockchain network designed to facilitate decentralized payments, and overseen by a DAO. Unlike other well-known layer-1 blockchain networks such as Ethereum, Solana, Cardano, etc, Solar seeks to provide users (even those with limited experience) with a simplified, more scalable, energy-efficient, and cost-effective blockchain to launch their tokens either using the Solar wallets or its SDK.

Solar is a community-driven project with no centralized leadership; governed by like minds with similar goals. Decisions are governed by proposals and voting to ensure everyone in the DAO has a say in the development of the ecosystem.

As an open-source blockchain, Solar allows developers around the globe to have easy access to various developer tools on the network, thus actively maintaining the network and developing new features or products, such as Side Ledger Protocol (SLP), Solar Wallet, Metaverse, Launchpad, etc.

Brief History of Solar Blockchain

It all started in 2018 when two visionary minds named Nayiem Willems and Joselito Lizarondo came together to establish Swipe — a popular peer-to-peer payment system used worldwide by notable businesses and individuals. Its primary objective at the time was to create a thriving peer-to-peer payment system that could revolutionize transactions.

In August 2019, Swipe raised $12 million in an Initial Coin Offering (ICO), attracting key investors and users. Recognizing Swipe’s potential in facilitating payments, Binance acquired a controlling stake in the project, thus, setting in motion a new wave of transformation and the birth of Solar — a “fast, modular, sustainable, efficient, and fully decentralized blockchain.”

Launched in July 2020 as a community-driven endeavor, enabling users to create and launch tokens similar to ERC20/BEP20 or ERC721 standards that are not strictly bound to Ethereum’s Solidity technology, and with its Restful APIs, you can use almost any coding language to access the SLP features.

Solar blockchain has attracted new partners and collaborators, it’s now on Mainnet, operates an advanced staking mechanism, and has introduced the Side Ledger Protocol (SLP) and the Solar Wallet, thus, showcasing its commitment to innovation and enhancing peer-to-peer payment system.

Solar Blockchain Foundation

Established in Estonia, the Solar Blockchain Foundation is an organization that caters to the SXP ecosystem. It’s run in the form of a DAO where members have a say in the operations and governance of the Solar blockchain. The aim is to have the foundation run by active community members who can vote on key decisions and decide whether to approve or reject a funding proposal through a voting process.

The Foundation offers support to projects within the Solar ecosystem. The goal is to build a robust and decentralized ecosystem.

How Does Solar Blockchain Work?

Solar uses the Delegated Proof of Stake (DPoS) consensus mechanism to secure and maintain the blockchain as well as validate transactions and vote on governance issues.

In comparison to the Proof-of-Stake consensus model, block producers are selected based on the amount of coin or token staked which in most cases is quite significant, thereby, excluding smaller coin or token holders. On the other hand, Delegated Proof of Stake model differs because block producers or validators are voted into position by coin or token holders, offering them the opportunity to contribute to a blockchain network even if they have limited funds.

In Solar, Delegates depend on coin holders to use their voting power to elect them into an active position, while also depending on the delegates to run the blockchain software and server hardware to secure the network.

DPoS gives coin or token holders greater control of the network and doesn’t require the use of very expensive or sophisticated mining hardware. As a result, it is a popular choice for blockchain networks that desire speed, scalability, and decentralization.

In Solar, there are 53 delegates chosen by the community to secure, maintain, and validate transactions. Each delegate is expected to forge or create one block per round within a specified time of eight seconds and propagate it through the network. Each round consists of 53 blocks and will be forged by all 53 delegates.

Delegates or node validators are rewarded with SXP based on their ranks. Those with higher ranks earn more rewards based on the vote received. Basically, a delegate at rank 1 can only forge a minimum of 6,75 SXP per block, while a delegate at rank 53 forges a minimum of 13,25 SXP per round.

A total of 530 SXP is shared between the 53 delegates per round thus increasing the supply of SXP. Delegates may choose to keep their reward (which comprises block rewards and transaction fees) or may share them with their voters. Essentially, they have the option of deciding what to do with their rewards and how much to keep as commission.

It is pertinent not to vote for a delegate based on gaining block reward but to vote for node validators who will actively contribute to the development of the Solar ecosystem through creating blog posts, technical documents, security improvement, marketing, as well as donating SXP for events.

How Secure is the Solar Blockchain?

Solar Core, the heart of the Solar blockchain was created in 2017 and is a fork from ARK Core. You can think of it as building a new toy by simply taking parts from another toy. This is quite popular in the blockchain industry. Litecoin, for example, is a fork of Bitcoin. Ark Core is also a fork of Crypti and Lisk.

Source: Ark Ecosystem - Reddit Post

The original ARK Core had some weaknesses, especially regarding security. One problem was that it lacked block finality. This means bad actors could create and propagate multiple blocks or delay block propagation. This could cause delays in transactions or even make the blockchain unstable. Another issue was with the way ARK Core used signatures. It made it easier to exploit the system and potentially steal tokens or user information.

The engineers behind Solar Core took these concerns seriously. They fixed the security flaws, added new measures, and strengthened the code. They addressed the block finality problem by instantaneous fork recovery and ensuring that only active block producers can participate in the network.

Solar Core also introduced a new way of using signatures called “Schnorr signatures.” It’s like having a group of friends sign a message together instead of each one signing separately. This improves efficiency and security. To make the system even better, Solar Core implemented a username system for block producers and allowed coin or token holders to vote for multiple block producers at once.

Essentially, the team behind Solar Core has taken security very seriously. They have fixed vulnerability issues, made important changes, and conducted several on-chain analyses before mainnet.

Features of Solar Blockchain

Source: Solar.org

Solar blockchain has introduced several features to bridge the gap between itself and other L-1 blockchains. So what are these unique features?

Side Ledger Protocol

Solar blockchain has a cool feature called the Side Ledger Protocol. It allows users to create different types of tokens, both fungible and non-fungible. Users can do this using our Solar wallets or the protocol’s special software development kit (SDK). It’s like having a tool to create unique digital assets with special uses for different industries.

Solar Launchpad

The Solar Launchpad is a special platform being developed on the Solar blockchain. It allows different projects built by developers to be showcased on Solar. Developers have to pay a fee to launch their projects and those fees are instantly burned to make the native token more valuable by reducing its supply.

Metaverse

Solar Blockchain is building a metaverse where users can interact with all the awesome features in the ecosystem. Although it’s still being developed, the plan will include even more capabilities from the Side Ledger Protocol and create a virtual marketplace. We’ll be able to do cool things like mint VIP passes, build dApps, and even communicate with spacecraft in the metaverse.

Solar Wallet

Source: Solar.org

On the SXP blockchain, users may transfer and receive SXP tokens and vote for delegates using the Solar Wallet. It could function as a browser wallet, a mobile wallet, or a desktop wallet. Users can engage with all platform features and participate in community activities in upcoming updates.

Solar Debit Card

Source: Solar.org

Community members can use the Solar Debit Card to conduct transactions on the network. Using the Debit Card, users can effortlessly purchase, sell, and pay for products and services with the SXP coin.

SolarScan

Source: SolarScan

Solarscan is the Solar blockchain explorer that allows users to analyze, confirm, and keep track of digitized assets stored on the blockchain. Essentially, it is a unique software application used to explore the Solar blockchain, showing technical information that’s the status of transactions, block height, cryptographic hash, hash rate, mempool size, miners’ reward, the source and destination wallet addresses, etc; and also market data such as circulating/maximum supply, the market capitalization of a cryptocurrency and visualization chart.

Additionally, the blockchain tool enables users to stay updated on the latest block formation and transactions, as well as monitor activities on the Solar network.

Roadmap

The protocol’s roadmap still has many features that are either in development or awaiting launch. In its recent update, the protocol introduced a new WebSocket API that enables users to engage with blockchain capabilities quickly. The update also supports key pair generation and public key verification. If the blockchain delivers on all its features, it could become one of the best L-1 blockchain networks. The protocol will announce future goals and milestones through a proposal to be voted for and approved by the community.

Partnerships

Solar blockchain has partnered with several brands to create a chain of use cases for the network. With its partnership with NOWPayments, users can use the SXP coin to make purchases. Also, businesses can utilize NOWPayments’ services to send payments securely and efficiently.

It has collaborated with Travala.com, allowing users to pay for bookings and accommodations using the native utility coin.

Source: Solar Network - Twitter Post

Furthermore, Solar has partnered with StealthEX, a non-custodial crypto exchange. StealthEX makes it easy for consumers to trade SXP coins since it enables custody-free crypto asset trading and swapping.

What is Solar Coin (SXP)?

The SXP coin is the utility and governance token of the Solar blockchain. You can use the SXP as a means of exchange or to buy goods and services from merchants. Additionally, community members elect delegates and vote on improvements to the ecosystem using the SXP coin.

SXP holders who use the Solar debit card will also get bonuses and incentives. They get additional perks and discounts while paying for products and services. They can also stake their coin to earn more SXP rewards.

SXP is circulating on three separate chains. The ERC-20 SXP token has a circulating supply of 285,368,789 SXP, while the Binance Chain & Binance Smart Chain SXP tokens have a combined circulating supply of 285,368,788 SXP. The Founders Wallet holds 50,000,000 SXP, while the Treasury Smart Contract has 40,800,000 SXP.

The value of the SXP coin has the potential to grow, as it can be used in many ways within the ecosystem. Features like the Debit Card, Side Ledger Protocol, Metaverse, and Launchpad contribute to the usefulness of the coin. Further, the successful implementation of these features will determine the overall progress of the project.

SXP Deflationary Supply Model

Source: Swipe Blog

Solar employs a burn mechanism to keep the SXP token deflationary. A burn mechanism is activated whenever a token or application is created using the Solar wallet or SDK. Also, transaction fees required to access the Metaverse and Launchpad are equally burned. This burning process gradually reduces the total supply of SXP coins in circulation and increases its value. As the supply decreases, the value and purchasing power of the remaining coins goes up.

As more people use its features, the network becomes more popular, and the total supply of SXP would decrease. In essence, the SXP deflationary supply model creates scarcity and potentially increases the value of the tokens.

Is Solar (SXP) a Good Investment?

The project has unique features and a roadmap that makes it competitive with other blockchain networks. Its deflationary supply mechanism, marketing strategy, and decentralization are a few areas to consider. If all its features are implemented, the network may see additional expansion and acceptance in the next few years. It’s already listed among the top 150 cryptocurrencies according to CoinMarketCap, which is a good sign for a bright future and can be traded on Gate.io, a leading centralized cryptocurrency exchange.

However, it’s crucial to remember that the information in this article is intended purely for educational and informative reasons. Investors should remember that cryptocurrencies are highly volatile, so they must conduct appropriate research and analysis before choosing which crypto assets to purchase.

How to Own SXP?

You can buy SXP from centralized and decentralized cryptocurrency exchanges. For example, Gate.io offers traders different trading pairs: SXP/USDT, SXP/ETH, SXP/USD, and SXP/TRY. To own the token, create a Gate.io account, and complete the registration process. Also, you need to fund your spot trading account and go through the steps to buy SXP.

Take Action on SXP

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Author: Paul
Translator: Cedar
Reviewer(s): Matheus、Edward、Ashley He
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