FTX's Sam Bankman-Fried said solana was one of the few blockchains with a roadmap to scale million of transactions.
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This lack of regulation means its transaction costs are less - making it an attractive tool or investment for people to move digital money around the world.
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Essentially it is very hard to tell which firms are real and which ones are scammers.
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— Ivelisse Porroa-Garcia is now director of government affairs at Ferox Strategies. She previously was policy director for the Congressional Hispanic Caucus.
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With the growing popularity of cryptocurrencies, a variety of digital currencies have emerged on the cyrpto investment scene. It is important to distinguish between three major categories in the crypto world and understand each one of them.
Cryptocurrency is formed through a process known as mining, which entails employing computer processing power to solve complex mathematical problems to earn coins. Users can also purchase the currencies from brokers, which they can then store and spend using encrypted wallets.
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Additionally, crypto regulation outside the U.S. has changed over time, based on evolving regulatory guidelines. The fifth Anti-Money Laundering Directive from the European Union, for example, entails that crypto buying, selling and other operations must comply with certain guidelines in certain regions.
The blockchain thus prevents double-spending, or the manipulation of cryptocurrency code to allow the same currency units to be duplicated and sent to multiple recipients.