Solar

What is Solar (SXP)?

Solar is an open-source, decentralized, community-powered blockchain project using a sustainable delegated-proof-of-stake (DPoS) consensus mechanism.

Decentralized thanks to 53 node operators and counting, Solar is also structured like a DAO since it has a wide community across the world. Every member of the Solar community has a voice, and decisions are governed by proposals and voting.

However, cryptocurrency aficionados will know that the SXP token used to be called Swipe, not Solar. This is because the blockchain and token were indeed part of Swipe, but the company was acquired by cryptocurrency exchange Binance in June 2020.

Swipe used to be known for being a front-end cryptocurrency card. However, it became the application programming interface (API) powering Binance’s own card that hit the market a month after the Swipe takeover.

The SXP token was initially a staking token for the Swipe card. Now, it is the coin that powers the SXP layer 1 blockchain.

When was Solar Launched?

The SXP blockchain and Solar Foundation were created following the acquisition of Swipe by Binance, and the project whitepaper was published in February 2022. The SXP blockchain and the Solar ecosystem are supported by the Solar Blockchain Foundation, and the project is led by Nayiem Williams.

How Does Solar Work?

Solar’s SXP blockchain is powered by Solar Core, a safe and secure layer 1 blockchain framework. Forked from Ark Core, the blockchain has 53 block producers, called node operators, and an 8-second block time.

Decentralized, fast, and secure, the SXP blockchain is often compared with projects like EOS, Solana, and Ethereum and provides developers with the tools and libraries to build various projects. These can include (but certainly aren’t limited to) dApps (decentralized applications), fungible and non-fungible tokens (NFTs), and even blockchain-based games.

Solar fully utilizes Schnorr for signatures, improving the security of the Blockchain Framework, and drops all support for ECDSA due to persistent signature malleability vectors. It also provides a more robust block production routine to minimize the likelihood of nodes missing blocks.

The SXP blockchain framework is open-source and actively maintained on Github by dedicated core developers. Anyone can create a PR or open an issue in its repositories to discuss design decisions or point out potential vulnerabilities.

What makes Solar Unique?

The Solar Core also has a number of enhancements, such as the Side Ledger Protocol (SLP) for token issuance with and without metadata. It also has custom transaction types and allows the creation of Solidity smart contracts on the SXP blockchain.

SLP allows any user to create both simple utility tokens and assets with specialized mechanics for advanced utility. This means that Solar is a project that is well-suited to adoption by any sort of entity or industry that requires decentralized public ledger technology.

Solar is also building out various other utilities on its blockchain. It has a metaverse currently in early-stage development. NFT marketplaces, Launchpads, Wallets, and all sorts of on-chain dApps are possible using Solar Core.

The project also features detailed documentation geared toward developers who want to work on the SXP blockchain. Solidity is one of the supported languages, but so are Typescript, Javascript, and Python.

How is the Solar Network Secured?

The SXP blockchain uses a delegated proof-of-stake (DPoS) consensus mechanism where SXP holders can delegate their tokens to one or more of the network’s 53 validators to take part in network security.

The process of block submission is also called forging, and each node operator forges one block per round. Therefore, each round consists of 53 blocks and produces 530 SXP coins that are shared among the validators based on their ranking in the top 53.

On top of the SXP issued per round, each block also contains fees that are collected from transactions on the blockchain. These are added to the rewards earned by validators for operating a forging node on the blockchain.

What is the Use of SXP?

SXP is the native coin of the SXP blockchain and is used to secure the network via staking and delegation, as well as in the payment of transaction fees.

However, the SXP token also exists on the Ethereum mainnet and the BNB Chain thanks to its history as Swipe’s utility token. These ERC-20 and BEP2 versions of SXP can be swapped for mainnet SXP at a 1:1 ratio.

It’s possible to simply hold SXP on BNB Chain or Ethereum without swapping, but those versions of the SXP tokens can’t be staked.

How Much SXP is In Circulation?

SXP has a total supply of just over 570 million coins, divided between the SXP, Ethereum, and BNB Chain blockchains. Prior to the creation of the SXP blockchain, the total supply was divided equally between the other two chains.

On-chain metrics show that SXP isn’t fully diluted, but that’s because the project’s Treasury Smart Contract on Ethereum is still locked away using a HTLC (hash time-lock contract). This contract is owned by Binance and releases tokens steadily over a certain time period.

Meanwhile, according to the Solar whitepaper, the project Founders wallet worth 50 million SXP will be burned and not enter the circulating supply at all.

How Do You Buy SXP?

You can buy SXP on a variety of different exchange platforms. It’s possible to buy ERC-20 and BEP-2 on Ethereum and BNB Chain-based DEX platforms like Uniswap and PancakeSwap, respectively.

Note that some centralized exchanges may also support only certain types of SXP token. Binance, for instance, doesn’t support mainnet SXP yet, so users have to buy ERC-20 or BEP-2 SXP before swapping them over. For that reason, it’s especially important to check which network your exchange is using before withdrawing SXP to your own wallet.

How Do You Store SXP?

Storing SXP depends on what blockchain your SXP tokens or coins are on. For BNB Chain or Ethereum-based SXP, you’ll have to use a relevant chain-specific wallet or one that can handle either blockchain.

For mainnet SXP, visit the official Solar Foundation website for a selection of compatible wallets. Currently, you can choose between the Solar Desktop Wallet and the Solar Mobile Wallet.

Is SXP a Good Investment?

SXP is a compelling project in its new, decentralized incarnation, and it provides a versatile technology stack for developers. The support of multiple common enterprise programming languages in addition to Solidity is also an attractive feature of the platform.

However, despite the age and history of the SXP token itself, Solar and the SXP blockchain are forging a fresh start. Like any layer 1 blockchain project, its value will come down to adoption and the development of an ecosystem of dApps that use the network, whether they be Web3, DeFi, enterprise, games, or anything else.

If SXP is able to attract developers and projects to build on it, then there’s no reason the SXP coin can’t perform in the long run.