When a company conducts business and needs to pay international suppliers with USDT, it typically considers aspects such as the stablecoin’s backing, liquidity, stability, and supplier acceptance. However, it rarely considers which network will be used to send the money, a crucial factor, as not all networks charge the same fees or offer the same transaction speeds. Among the various blockchain networks currently available, the Solana network has distinguished itself for a simple reason: it is designed for fast, low-cost transactions. Next, we will learn more about Solana, its origins, and why it stands out from other blockchains for B2B USDT payments.
Origin of the Solana Network
Solana was created in 2017 by Anatoly Yakovenko, whose background in distributed systems engineering shaped the project’s technical approach. Solana’s initial goal was to solve the problem of time synchronization in decentralized networks, a factor that limited processing speed in most blockchains. The Solana network began operating in 2020 and has, in recent years, become a leading network in the sector.
Low fees that redefine the cost per transaction
Moving funds through a congested network is often frustrating, as it can incur fees of $3 or more per operation. These costs can be counterproductive for a company that pays dozens or hundreds of suppliers on the same day. Solana was created precisely to solve this problem, as its focus is not only on speed but also on low fees, regardless of how many people are using the network.
Currently, a transaction on Solana typically costs less than one cent, even during peak demand, which is not the case on other blockchains. This is a major advantage for any company’s finance team, as it enables accurate budgeting of commission expenses.
Confirmation Speed
Solana produces a new block every 400 milliseconds, resulting in confirmations that, in practical terms, feel almost instantaneous. When USDT is sent, the other party sees the payment reflected within seconds. If a supplier is waiting for confirmation to release a shipment or grant access to a service, those few seconds of delay can prevent inconveniences or setbacks, such as calls, emails, and misunderstandings.
It’s worth noting that the Solana network can process between 1,000 and 4,000 transactions per second under normal conditions, with even higher peak rates. This leaves other, older networks far below that capacity, especially during peak demand.
Proof of History: The Mechanism Behind That Speed
How does Solana achieve this processing speed without crashing? The key is called “Proof of History” (PoH). In other networks, validators typically waste time and energy agreeing on which transaction occurred first. In Solana, this order is predetermined by an ordered and immutable history of events.
This difference allows the network to process transactions in parallel, a significant architectural difference that enables scaling operations without exponentially increasing operating costs.
Distributed Validators and Network Security
Solana combines Proof of History (PoH) with Proof of Stake (PoS), a model in which hundreds of validators (distributed worldwide) confirm blocks. This avoids dependence on four nodes controlled by a single company, as a large and diverse network supports this validation.
This combination provides a suitable balance, allowing for a certain level of decentralization without sacrificing performance. In practical terms, the network has been consistently operational more than 99% of the time, making it ideal for companies that want to pay suppliers 24/7.
SPL and its relationship with USDT on Solana
The Solana Program Library (SPL) is the standard for creating and managing tokens on the Solana network, similar to ERC-20 on Ethereum but adapted to this architecture. The SPL standard comprises a set of pre-developed programs that define the common rules for token creation, transfer, and management on this blockchain.
USDT, issued as an SPL token, has become one of the most active versions on the network, alongside USDC. For a business, this means that if it needs to pay with USDT on Solana, it’s not operating in an experimental state, as there is liquidity and real activity on the platform.
It’s important to remember that there are several differences between USDT and USDC. Therefore, before choosing a stablecoin to pay a supplier, it’s important to review its key characteristics to select the best one for your needs (or the supplier’s).
Growing adoption of stablecoin payments
In the past, Solana was associated only with DeFi and NFTs. Currently, thanks to its key features (speed and low costs), it ranks among the networks with the highest volume of stablecoins globally. As a result, more companies and payment gateways are using Solana as an alternative for quickly and cost-effectively moving their funds.
What are your thoughts on this? Do you know of any other important features of the Solana network?
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