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Solana is a high-performance Layer 1 blockchain made to have fast transaction speeds and low costs. To achieve that standard, it uses its own Proof of History (PoH) consensus mechanism, which timestamps transactions before they are processed, along with Proof of Stake (PoS) for network security. Solana’s architecture supports smart contracts, decentralized applications (dApps), and tokenization, making this network extremely versatile.
Solana has become even more relevant recently due to its scalability, speed, and developer-friendly ecosystem. As Ethereum faced some difficulties regarding high gas fees and network congestion, Solana showed up as a great alternative. Its ability to support high-throughput applications, such as decentralized exchanges (DEXs) and NFT marketplaces, has made it an innovation hotspot. Moreover, Solana’s ecosystem is supported by important institutions and partnerships. High-profile projects like Serum (DeFi), Magic Eden (NFTs), and StepN (move-to-earn) have solidified its reputation as a leading blockchain.ย
Key Takeaways
- Solana is designed for scalability, boasting transaction speeds of up to 65,000 TPS (transactions per second) with minimal fees, making it one of the fastest blockchain networks.
- It uses a combination of Proof of History (PoH) and Proof of Stake (PoS) to achieve high efficiency and decentralization while maintaining security.
- Solana has a thriving ecosystem of decentralized applications (dApps), DeFi projects, and NFT marketplaces, supported by strong developer tools, grants, and community initiatives.
How Does Solana Work?
Solana is a high-performance blockchain designed to solve the blockchain trilemma of scalability, security, and decentralization. It uses a combination of innovative technologies and architectural features that we will explore in this section to make it work.
Consensus Mechanism
The main feature of Solana’s design is the Proof of History (PoH) mechanism, a cryptographic clock that timestamps transactions, generating a verifiable sequence of events that don’t require frequent communication between nodes. This technique reduces consensus times and improves efficiency by allowing validators to independently verify the order of transactions.ย
PoH works with Solana’s implementation of Proof of Stake (PoS) through the Tower Byzantine Fault Tolerance (BFT) algorithm. Tower BFT uses PoG as a global time source, enabling validators to reach consensus with less communication, reducing latency, and improving network throughput. We explore Solana’s PoS in our guide to the best Proof of Stake coins.
Network Architecture for Scalability and Speed
Solana’s architecture is optimized for high scalability and speed, using several new tools. The Sealevel engine allows parallel execution of smart contracts by enabling multiple transactions to run at the same time in the same state, using multi-core processors for better throughput.
This combined strategy allows Solana to reach up to 65,000 transactions per second (TPS) with sub-second finality, making it one of the fastest available blockchains. Also, its low transaction fees, usually less than one cent, make it very cost-effective.
Additionally, the Gulf Stream protocol pushes transaction caching. It takes it to the next network edge, decreasing confirmation times and making it possible for the network to handle a high volume of transactions.ย
To improve quick data propagation, Solana uses the Turbine protocol, which breaks data into smaller parts and transmits them through nodes’ networks in a structure similar to a tree to reduce latency and guarantee efficient block propagation.
Security and Decentralization
While Solana’s priority is scalability and speed, it also has important features that keep security and decentralization within the network. The network uses a Delegated Proof of Stake (dPos) system, allowing holders to delegate their stakes to validators responsible for keeping the network safe. This strategy incentivizes active participation and helps prevent centralization.
However, Solana’s high hardware requirements for validators concern potential centralization, as only entities with significant resources can operate validator nodes.
What Is Solana Used For?
Solana’s high-speed, low-cost blockchain infrastructure makes it a great network for several applications, including DeFi, meme coins, NFTs, gaming, and real-world payments. Its ability to process more than 65,000 transactions per second (TPS) with almost instant finality guarantees that DeFi platforms can offer easy trading, lending, and liquidity without the high fees on other blockchains.
This led to the increase of Solana-based DEXs, lending protocols, and yield farming protocols. The meme coin industry also exploded on Solana due to the chain’s scalability and affordability, allowing investors to trade tokens with low slippage and transaction costs.
Beyond DeFi and meme coins, Solana is also a lead player in NFTs and blockchain gaming. Its low fees and fast transaction speeds make minting, buying, and selling NFTs easier and cheaper when compared to Ethereum. Solana’s parallel processing architecture (Sealevel) also allows high-performance gaming applications, letting developers create complex, on-chain games without worrying about congestion issues.
Real-world payment applications also use Solana for its instant settlement characteristics, which allow business and financial institutions to process cross-border transactions efficiently.
What Is SOL Crypto?
SOL is the native cryptocurrency of the Solana blockchain and the main piece of its high-speed and low-cost ecosystem. It is mainly used to pay transaction fees and guarantee the efficient execution of smart contracts and token transfers on the network. SOL can also be used in staking, where users can run validator nodes or delegate their tokens to existing validators in exchange for rewards.
SOL also participates in network governance, enabling holders to join in decisions about protocol upgrades and network improvements. While Solana doesn’t currently have a fully decentralized governance structure, SOL holders still influence ecosystem developments through community proposals and validator decisions. The token supports Solana-based applications, including NFT marketplaces, blockchain gaming, and real-world payment solutions.
Solana’s tokenomics consists of both inflationary and deflationary mechanisms to balance supply and demand. New SOL tokens are minted to reward validators and delegators, guaranteeing constant network security. However, 50% of all transaction fees are burned to avoid inflation. Initially, Solana had an 8% annual inflation rate, which decreased by 15% yearly until settling on 1.5%, reducing the long-term dilution.
Solana Price Chart
(SOL)How Does Solana Compare to Other Blockchains?
Solana is one of the fastest and most cost-efficient blockchains, but how does it compare to Ethereum and Bitcoin, the two largest networks? While Bitcoin is primarily a store of value and Ethereum is the leading smart contract platform, Solana aims to offer high-speed transactions, low fees, and scalabilityโmaking it an attractive choice for DeFi, NFTs, gaming, and real-world payments.
Below is a comparison of key factors of Solana, Ethereum, and Bitcoin. Weโll explore these differences in more detail in the following sections:
| Feature | Solana | Ethereum | Bitcoin |
| Consensus Mechanism | Proof of History (PoH) + Proof of Stake (PoS) | Proof of Stake (PoS) | Proof of Work (PoW) |
| Transactions per Second (TPS) | ~65,000 | ~30 (Ethereum Mainnet) | ~7 |
| Transaction Fees | ~$0.00025 | ~$0.50 โ $10+ | ~$1 โ $10+ |
| Block Time | ~0.4 seconds | ~12 seconds | ~10 minutes |
| Scalability | High | Moderate (Layer 2 scaling needed) | Low |
| Smart Contracts | Yes, with Rust & C | Yes, with Solidity | No |
| Energy Consumption | Low | Low (since PoS upgrade) | High |
| Decentralization | Moderate (High hardware requirements for validators) | High | Very High |
| Primary Use Cases | DeFi, NFTs, gaming, payments | DeFi, NFTs, dApps, enterprise solutions | Store of value, payments |
Solana vs Ethereum
Solana and Ethereum are very different in terms of transaction speed and scalability. Solana’s high throughput, which handles up to 65,000 TPS theoretically and around 3,000 to 4,000 TPS in real conditions, gives it a clear advantage in processing efficiency. This speed is possible due to Solana’s unique hybrid consensus mechanism. In contrast, Ethereum currently processes only 15-30 TPS on its base layer. Although Ethereum changed to Proof of Stake (PoS) has made energy efficiency better, its scalability is still dependent on Layer-2 solutions like Arbitrum and Optimism, which help reduce congestion but still need higher adoption rates.
Solana also has a more considerable advantage regarding transaction fees since its average cost is just $0.00025 per transaction. On the other hand, Ethereum has volatile gas fees, which can go from less than a dollar to over $10 when network congestion is detected. While Ethereum is still the leading choice for DeFi and NFT, with well-known platforms like Uniswap and OpenSea, Solana is quickly closing the gap despite facing network outages. This makes Ethereum more reliable for complex financial applications, and Solana’s speed and affordability make it the best choice for gaming, NFTs, and high-volume transactions.
Solana vs Bitcoin
Solana and Bitcoin have very different architectures, which leads to significant disparities in transaction processing, security, and use cases. Bitcoin’s PoW guarantees high security and decentralization but limits transaction speed, often causing delays during high congestion periods. Solana, on the other hand, with its mix of PoS and PoH, can complete faster and more scalable transactions, making it the best choice for applications that need real-time interactions. While Bitcoin is mainly a store of value and digital gold, Solana is designed for high-performance blockchain applications.
Transaction fees are significantly lower than Bitcoin, whose fees can vary considerably, reaching over $50 during peak times. The energy consumption of Bitcoin’s PoW mechanism requires high computational power, whereas Solana’s PoS-based system is way more efficient. Although Bitcoin continues to be the most recognized and trusted cryptocurrency, Solana is a scalable and low-cost alternative. While Bitcoin is the best choice for a secure, long-term value store, Solana supports the next generation of dApps.
Biggest Solana Competitors
Even though Solana already leads high-speed blockchains, it is facing growing competition from Avalanche, Aptos, and Sui. These platforms offer scalability, low fees, and fast transaction processing, making them strong competitors in the blockchain space.
Avalanche uses its own subnet architecture that allows independent blockchains to operate within its ecosystem, providing high-speed transactions and interoperability.
Aptos stands out by using the Move programming language, which improves security and flexibility for smart contract development.
Sui employs a Directed Acyclic Graph (DAG) structure that supports parallel transaction processing that can improve throughput and reduce congestion.
Despite being similar in speed and cost-effectiveness, these platforms vary in their consensus mechanisms, ecosystem development, and use cases. Avalanche and Aptos rely mostly on PoS, with Avalanche offering customizable subnets for scalability. Sui’s DAG-based strategy has efficiency and parallelization as its main priorities.
While Solana and Avalanche are already well-established as ecosystems, with Solana leading in NFTs and DeFi and Avalanche taking leadership of enterprise blockchain solutions, Aptos and Sui are still growing but showing strong potential.ย
| Feature | Solana | Avalanche | Aptos | Sui |
| Consensus Mechanism | PoH + PoS | PoS | PoS | DAG |
| Transactions Per Second (TPS) | ~65,000 | ~6,500 | ~160,000 | +1,000 |
| Transaction Fees | ~$0.00025 | $0.01 to $0.08 | ~$0.01 | $0.01 to $0.05 |
| Ecosystem Focus | DeFi, NFTs, gaming | DeFi, enterprise, subnets | Secure smart contracts, dApps | Scalability, user experience |
| Programming Language | Rust, C | Solidity, Rust | Move | Move |
| Scalability Features | High-speed execution | Customizable subnets | Flexible smart contracts | Parallelized DAG transactions |
| Maturity | Established | Growing | Emerging | Emerging |
Major DApps on Solana
Solana has become an important hub for decentralized applications (dApps), offering a range of projects in DeFi, NFTs, gaming, and payments. Solana enables seamless interactions across its ecosystem with high transaction speeds and low fees. Hereโs a look at some of the most notable dApps running on Solana:
DeFi Platforms
Raydium
Raydium is an important decentralized exchange (DEX) on Solana that works with an automated market maker (AMM) model, offering deep liquidity and fast token transactions. Raydium, differently from other platforms, integrates directly with Serum, a Solana-based order book DEX. This integration provides improved price execution and less slippage. Additionally, it has Fusion Pools that allow new projects to take advantage of liquidity efficiently while rewarding users with yield farming opportunities.
Orca
Orca is one of the most accessible DEXs on Solana due to its user-friendly interface and straightforward trading experience. Its AMM model guarantees low slippage and fair pricing, with a “Fair Price Indicator” that assists investors in making better-informed decisions. Orca also supports yield farming, enabling liquidity providers to earn more rewards.
Jupiter
Jupiter, a DEX aggregator, gets its liquidity from several Solana-based exchanges to support better token swaps. Instead of depending on just one DEX, investors can take advantage of the best available trading rates across the network. Jupiter also offers limit orders, perpetual futures, and decentralized stablecoins, making it one of the most versatile tools for traders.
Leading NFT Marketplaces
Magic Eden
Magic Eden is the biggest NFT marketplace on Solana, offering very low fees for minting, buying, and selling NFTs. Its main focus is on community engagement and creator tools, supporting multi-chain NFT trading.
Tensor
Tensor is a high-performance NFT marketplace focused on advanced traders and collectors. It offers great features such as real-time price tracking, portfolio management, and professional trading tools. It differentiates itself from other platforms by focusing on NFT liquidity and analytics.
Gaming and Social dApps
Star Atlas
Star Atlas is a space exploration game built on Solana. It features a metaverse economy where players can own assets, trade resources, and battle their adversaries. The game uses NFTs to represent ships, lands, and other in-game assets, allowing players to own their digital property fully.
Audius
Audius is a decentralized music streaming platform that allows artists to submit their content without needing traditional record labels or streaming services. It was originally launched on Ethereum, but Audius changed to Solana due to faster transactions and lower costs. Through Audius, artists can earn directly from their streams, having more control over their profits.
Stablecoins and Payment Solutions
USDT
Tether’s USDT stablecoin is available on Solana, offering a fast and cost-efficient alternative to Ethereum-based USDT transactions. Using the Solana network, traders can transfer USDT with almost zero fees and instant settlement.
USDC
USDC is another stablecoin integrated into the Solana ecosystem. With full regulatory backing and transparent reserves, USDC on Solana supports businesses and individuals doing low-cost, high-speed transactions. It’s the main asset in DeFi, remittances, and everyday payments.
Solana Pay
Solana Pay is a payment protocol that facilitates instant transactions using SOL and other Solana-based tokens. It allows businesses to accept digital payments with near-zero fees, being a great alternative to Visa and Mastercard.ย
Latest Solana News
Solana Investments and Price History
Solana has seen important price movements since its launch. Its initial coin offering (ICO) in April 2020 priced SOL at $00.9511, and starting from there, the token has grown quickly. Solana hit its first all-time high of $256.07 in 2021, pushed by growing adoption, DeFi projects, and higher investor confidence. However, in 2022 and 2023, the network experienced outages and broader market volatility, causing the price to drop. By 2024, Solana resurged, setting a new ATH of $263.7 due to institutional adoption, ecosystem expansion, and better network stability. As of 2025, Solana remains a top-10 blockchain contender with an upcoming 112 million SOL token unlock on March 1, 2025.
The launch of Solana Pay in October 2021 to make crypto transactions more straightforward helped increase adoption. However, network outages in 2021 and 2022 raised concerns about reliability. The following record-breaking price surge in 2024 happened due to technological advancements, growing DeFi applications, institutional interest, and worldwide political changes. Looking ahead, the token unlock in 2025 could introduce temporary selling pressure, but Solana’s reliable ecosystem and strong development roadmap still support long-term growth potential.
Why Is Solana Growing So Fast?
Solana’s growth is mainly attributed to its high-speed transactions and low fees, which make it a great alternative to slower, costlier networks like Bitcoin and Ethereum. Its ability to process thousands of transactions per second allows developers to build scalable dApps without having to worry about congestion or excessive gas fees. Its efficiency and adoption grow fast, especially across the DeFi, NFTs, and gaming industries.ย
Another factor pushing Solana further is its ecosystem, which developers, partnerships, and an active community widely support. This blockchain has already attracted institutional investors who saw long-term potential in its infrastructure and meme coin projects like Bonk and Dogwifhat. These meme coins pushed trading volume up, bringing more liquidity and users to the Solana network. Also, strategic partnerships with DeFi protocols and NFT marketplaces expanded its ecosystem.
In the following months, potential ETF approvals in the U.S., which have been acknowledged by the SEC, could push Solana’s adoption and market value even more. If SOL ETFs are approved, more traditional investors can have a safer entry point into Solana. In the meantime, continuous technological improvements and ecosystem expansions are being developed to maintain sustained growth.
Is Solana a Good Investment?
Solana can be considered a strong investment option due to its high transaction speed, low fees, and scalability potential. These characteristics make it a great choice for developers, users, and institutional investors, increasing the chances for mainstream adoption. Its growing ecosystem, mainly in DeFi, NFTs, and Web3 applications, continues to incentivize adoption and increase demand for SOL. Also, institutional backing and potential ETF approvals can further improve its market position. While Solana has great growth potential, investors should approach it with diversification and ongoing market analysis to manage risks effectively.
Risks and Challenges
Solana often experiences major price volatility, making it very dependent on market trends and speculative trading. This can cause prices to skyrocket or abruptly decline, impacting investor confidence and adoption. Also, regulatory uncertainty is a big roadblock, as potential legal actions against cryptocurrenciesโincluding the classification of SOL as securityโcould stop institutional investments and damage potential ETF approvals.ย
Solana’s history of network outages and congestion made investors question its reliability long-term. Even though it has high-speed transactions, most of the time, investors and developers have criticized Solana’s frequent network instability. Technical issues like this can make users not trust the platform and look for more stable blockchain alternatives. Moreover, security risks and vulnerabilities can be a concern, as smart contract bugs, scams, and fraud can damage Solana’s reputation.
Another challenge is the high competition between Solana, Ethereum, Avalanche, and Polkadot. To grow in the long run, Solana must keep its technological edge while improving scalability, decentralization, and security.
Where to Buy Solana?
$SOL can be bought on centralized (CEXs) and decentralized (DEXs) exchanges, offering different benefits. Centralized exchanges like Binance, Coinbase, Kraken, and KuCoin give users access to buy SOL using fiat currencies or cryptocurrencies, usually with high liquidity and safe custodial services. CEXs typically have regulatory compliance, customer support, and user-friendly interfaces, making them the best choice for beginners. However, users must go through identity verification (KYC) and pay trading fees that vary based on transaction size and platform policies.
On the other hand, DEXs like Raydium, Orca, and Jupiter allow peer-to-peer SOL trading directly on Solana’s blockchain. Due to users having full control over their assets, DEXs usually have lower fees, no KYC requirements, and increased security. Liquidity will depend on liquidity pools and market activity, meaning prices can be slightly different from CEXs.ย
| Platform | Fees | Security | Liquidity |
| Binance | Trading fees range from 0.012% to 0.1% for makers and 0.024% to 0.1% for takers. | Implements advanced security measures, including multi-factor authentication and cold storage solutions. | High liquidity due to a large global user base. |
| Coinbase | Charges approximately 0.5% per trade; additional fees may apply based on payment method. | Employs strong security protocols, such as two-factor authentication and insurance coverage for digital assets. | High liquidity with a significant user base, especially in the U.S. market. |
| Kraken | Maker fees up to 0.16% and taker fees up to 0.26% for trades under $50,000. | Known for great security, including advanced cold storage and regulatory compliance. | Offers substantial liquidity across various trading pairs. |
| Raydium | Generally lower fees compared to CEXs; specific rates vary by transaction. | Operates on the Solana blockchain with decentralized security protocols. | Liquidity depends on user-provided pools; integrated with Solana’s ecosystem. |
| Orca | Competitive fees with a focus on user-friendly transactions. | Utilizes decentralized security measures inherent to the Solana network. | Relies on liquidity pools contributed by users; part of the Solana ecosystem. |
How to Store SOL Crypto
Storing your SOL safely is one of the most critical aspects when holding these tokens, and selecting the best wallet is one of the most impactful choices you will make. Hardware wallets, such as those offered by Ledger, are a great solution for long-term storage since they keep your private keys offline, reducing the risk of exposure to online threats.ย
If you need more frequent access to your funds, software wallets like Phantom and Solflare are a great balance of security and convenience. Phantom is known for its user-friendly interface and support for staking, NFT integration, and interaction with dApps. Solflare offers multi-device accessibility, integrated token swaps, and excellent security features like hardware wallet support and anti-phishing measures.
Regardless of the wallet type you choose, you must follow some best practices to ensure your SOL is safe. Always back up your seed phrase by writing it down and storing it safely and offline โ you will need it to recover your wallet in case you lose it. Also, activate two-factor authentication or other security features available for more protection. Regularly updating your software wallet and being aware of phishing attempts will also improve your assets’ safety.
What Is the Best Solana Wallet?
Choosing the best Solana wallet depends on your specific needs, whether it’s security, ease of use, or advanced features like staking and NFT support. Solana wallets range from hardware options that offer maximum security to software wallets optimized for accessibility and convenience. Below is a comparison of some of the top Solana wallets, helping you decide which one best suits your requirements.
| Wallet | Features | Pros | Cons |
| Phantom | User-friendly, supports NFTs, staking, swaps | Easy to use, multi-chain support, browser extension | Less secure than hardware wallets |
| Solflare | Native Solana support, staking, 24/7 support | Great for Solana users, mobile & browser versions | Limited multi-chain support |
| Ledger Nano X | Hardware security, offline storage, integrates with software wallets | High security, multi-chain support | Requires physical handling, less convenient for frequent transactions |
| Exodus | Beginner-friendly, supports 250+ cryptocurrencies | Simple interface, multi-chain support | Not specifically optimized for Solana |
| Atomic Wallet | Staking with high APYs, supports 500+ cryptocurrencies | Good staking rewards, wide asset support | Lacks Solana-specific optimizations |
How to Stake SOL for Passive Income
Staking Solana (SOL) means users can earn passive income by helping secure the network. By delegating their SOL tokens to a validator, stakers can help with transaction validation, making the network more efficient while being rewarded in return. Staking can be done through CEXs like Binance, Coinbase, or Kraken, which offer automated staking rewards.ย
Or, users can use non-custodial wallets such as Phantom or Solflare, where they will have greater control over their funds and delegation choices. A third option would be staking pools like Marinade.Finance, where investors can stake SOL and receive mSOL tokens that keep liquidity while still receiving rewards.
The process of staking SOL usually goes through this step-by-step:
- Select a Staking Platform โ Choose between a centralized exchange, a non-custodial wallet, or a staking pool.
- Acquire SOL โ Buy or transfer SOL to the platform of choice.
- Choose a Validator โ Pick a reputable validator with high uptime and good performance.
- Delegate SOL โ Follow the staking instructions on the platform to stake SOL.
- Earn Rewards โ Receive staking rewards periodically, usually in SOL.
The majority of platforms have almost no staking requirements, with some allowing as little as 0.01 SOL to be staked. The rewards, or Annual Percentage Rate (APR), depend on network conditions and validation performance, but they usually outperform traditional investments. One important factor to consider is the unbinding period, which usually lasts between 2 and 4 days, during which users can’t immediately withdraw their staked SOL.
To improve your profit margins, it’s crucial to find a reliable validator with a relevant track record, as validators that aren’t performing well can reduce your rewards. Diversifying across different validators or using staking pools can also reduce risks. You should also monitor APR variations and consider compounding rewards by reinvesting earned SOL into staking.ย
The Future of Solana
Given the network’s focus on upgrades, security improvements, and ecosystem expansion, Solana’s future looks bright. The Fire Dance upgrade has already increased transaction speeds to 80,000 TPS, and more scalability improvements are in development. Many validator clients are being added to solve past network instabilities, reducing the risks of downtime and congestion. Solana is also working on cross-chain compatibility, wanting to expand its reach beyond its own ecosystem.ย
Aside from technical improvements, Solana’s DeFi and NFT markets continuously attract developers and users. Institutional adoption is also growing, mainly in staking, financial applications, and partnerships. Furthermore, the expected approval of Solana ETFs could significantly increase market confidence and introduce the network to traditional financial markets. While there are still challenges, including regulator uncertainties and competition from Ethereum and other Layer 1 blockchains, Solana’s effort in pushing innovation and increasing adoption suggests it could play a major role in the next crypto bull run.
Will Solana Survive Long-Term?
Several experts have shared insights on Solana’s long-term viability:
“By 2030, our Solana valuation scenarios project a SOL price ranging from a bearish $9.81 to a bullish $3,211.28.” (Patrick Bush – VanEck)
“Solana could climb above $250, bringing its price just $10 shy of its previous peak.” (Osato Avan-Nomayo – DL News)
“The Trump coin proved how valuable Solana’s network is.” (Anthony Scaramucci – Financial Times)
These perspectives highlight both the potential and challenges facing Solana’s future.
Final Thoughts on Solana
Solana is a high-speed, low-cost blockchain that is growing quickly, and is a strong competitor to other well-established networks. Its innovations, such as Proof of History (PoH), have supported further scalability and efficiency, attracting developers, DeFi projects, and NFT platforms. Institutional interest, growing adoption, and potential ETF approval also stamp Solana’s name in the market.
However, Solana also offers some risksโits past network outages, regulatory uncertainty, and competition from other blockchains pose challenges that investors and users should carefully consider.
While Solana’s future seems bright, its long-term success depends on frequent innovation, security improvements, and market conditions. As with any investment or technology, it is very important that you stay informed and research deeply before using or investing in Solana. Knowing its roadmap, network development, and regulatory updates will help you make informed decisions.
FAQs
What network is Solana on?
Solana is an independent Layer 1 blockchain platform designed to host decentralized, scalable applications. It uses a combination of Proof of History (PoH) and Proof of Stake (PoS) consensus mechanisms to have high transaction speeds and low fees.
How does Solanaโs validator system work, and who can run a validator?
Solana's validator system relies on nodes that process transactions and participate in consensus. Anyone with the required hardware and stake can run a validator, contributing to network security and decentralization.
How does Solana handle network congestion and outages?
To address network congestion and outages, Solana has implemented solutions like the QUIC protocol and stake-weighted Quality of Service (QoS) to improve network stability and manage high traffic volumes.
What is Firedancer, and how does it impact Solanaโs scalability?
Firedancer is a new validator client developed by Jump Crypto for Solana, aiming to improve the network's efficiency and transaction processing capabilities.
Who owns the most Solana?
Solana's token distribution includes allocations to the Solana Foundation, team members, and investors, with the largest holders being early investors and the foundation itself.
How does Solana support developers building dApps?
Solana supports developers by offering comprehensive documentation, development tools, and grants, fostering the creation of decentralized applications (dApps) on its platform.
