Solana is an open-source blockchain platform launched in March 2020 by the Solana Foundation. The project was initiated in 2017 by Anatoly Yakovenko, a former Qualcomm engineer, with the goal of building a blockchain capable of handling thousands of transactions per second at near-zero cost.
How Solana Works
Solana uses a unique combination of Proof-of-History (PoH) and Proof-of-Stake (PoS). Proof-of-History is a cryptographic clock that timestamps events before they are included in blocks. The Proof-of-Stake layer selects validators who stake SOL to confirm blocks. This dual-layer approach allows Solana to achieve theoretical throughput of up to 50,000 transactions per second. Transaction fees on Solana typically cost less than a fraction of a cent.
What Is SOL Used For?
- Transaction fees: SOL is required to pay for network transactions.
- Staking: Validators and delegators stake SOL to secure the network and earn rewards.
- DeFi: SOL is the base currency across the Solana DeFi ecosystem.
- NFTs: The Solana NFT market has become one of the largest in the crypto space.
- Payments: Visa, PayPal, and Worldpay have all built integrations on Solana.
Why Has Solana Grown So Quickly?
Solana combination of speed, low fees, and a rapidly expanding developer ecosystem has attracted both retail users and institutional investors. In 2026, Solana ETFs from Bitwise, Fidelity, and VanEck began trading in the United States, providing regulated exposure to SOL.
