What is Solana (SOL) - A Comprehensive Overview

How does Solana work?

Solana network is a decentralized computing platform designed for scalability. To achieve this mission, it applies numerous novel approaches. A key factor among these is dual consensus, which involves employing PoS and PoH in transaction processing and finalization.

This approach leverages validators who secure the network by validating blockchain transactions and generating transaction sequences before including the data in the blockchain.

PoH, on the other hand, automates blockchain transaction ordering, delivering fast transaction speeds and settlement times. It is a more efficient transaction timestamping system that enables Solana Network to process thousands of transactions per second.

Architecture of the Solana Chain

The Solana network integrates several advanced features that enhance its speed, scalability, and overall efficiency.

Proof of History (PoH)

This consensus method adds the element of time to a blockchain ledger, providing a verifiable record of time that does not rely on a central clock and still preserves decentralization.

It cryptographically verifies the passage of time between events and chains the data from nodes about the validity of blocks, complete with a reference detail of the chronological order of creation.

Tower BFT

This is an iteration of the Practical Byzantine Fault Tolerance technology that uses Solana’s PoH as a clock before consensus, an approach that reduces messaging overhead and latency.

Turbine

A multi-layer block propagation protocol that facilitates easier communication between nodes. Turbine leverages User Datagram Protocol (UDP) to shred blocks into data packets, making it easy to broadcast them across the network.

Gulf Stream

Regular blockchains rely on mempools to save data from unverified transactions. Solana uses Gulf Stream, a mempool-less forwarding protocol. This feature hastens transactions by ensuring applications do not hoard data about pending transactions.

Pipelining

A rendering technology that optimizes the transaction life cycle. It initiates the execution process of incoming transactions before finalizing earlier transactions, boosting efficiency.

Ledger Archivers

Powers dApps on Solana by storing large volumes of network data efficiently. The feature leverages public symmetric keys for data encryption, ensuring that the data sequence remains accurate and verification of all proofs happens in a single take.

Sealevel

A smart contracts runtime that can process up to 65,000 contracts in parallel by optimizing validator core output.

Cloudbreak

A horizontally scaled accounts database that enables Solana to scale by morphing network participation into small parallel chains that increase the network’s overall processing capacity.

What Makes Solana Network Useful?

Solana was developed to address challenges plaguing first-generation blockchain networks. It puts forth four key breakthroughs:

• Scalability — The chain’s architecture integrates native scalability, enabling it to process thousands of transactions and accommodate many users.

• Throughput — It is among the very fast blockchains with a processing capacity of 65,000 TPS.

• Energy conservation — The dual consensus technology consumes less energy than previous consensus mechanism modes.

• Lower transaction costs — Solana processes transactions at a fraction of a penny, an important step toward the mass adoption of blockchain technology.

Who Created Solana Blockchain?

Solana was created in 2017 by Anatoly Yakovenko, Raj Gokal, Greg Fitzgerald, Eric Williams, Stephen Akridge, and Alan Yu. Anatoly, a former Qualcomm executive, introduced the Proof-of-History consensus. Raj, the COO, has expertise in business development, having founded startups like Sano.

Greg and Stephen are experienced software architects, while Eric, a particle physicist, led data science. Alan, now an advisor, contributed business insights.

Solana Labs develops tools, and the Solana Foundation oversees decentralization. The project raised over $350 million from investors like Andreessen Horowitz and Polychain Capital.

Role of SOL in Solana's Ecosystem

SOL is the native token of the Solana blockchain. It is used to pay transaction fees on the network and is the gas that facilitates the execution of transactions and smart contracts. Users get access to the services on the chain, such as DEXs and in-game items on the platform, using SOL tokens.

SOL also plays a critical role in securing the network. Validators stake their token to participate in validating transactions, generate PoH sequences, and create new blocks on the network. In return, they earn staking rewards.

SOL empowers holders to participate in the governance of Solana. Holders get to vote on decisions affecting the future of the chain.

The token can be used to transfer value because it can be sent from one user to another as payment. Solana Pay, the open, free-to-use payments application, allows users to transfer value among themselves.

How to get started with Solana

Follow these steps to get started on Solana:

Create a Wallet

Users require a SOL-compatible wallet to store and manage their tokens. Various platforms, including self-custody wallets, centralized exchanges, decentralized exchanges, and institutional custodians support the token.

Users should research extensively and settle on a suitable wallet. Note that self-custody wallets are ideal for long-term cryptocurrency holding.

Buy SOL Tokens

Follow the steps below to buy SOL tokens:

1. Sign up or log into an exchange.

2. Search for SOL tokens and buy using approved payment methods.

3. Transfer the tokens to a SOL-compatible wallet.

4. Use appropriately.

Staking SOL Tokens

Token holders who stake SOL earn rewards in exchange for facilitating the transaction validation, creating platform stability, and securing the Solana Network.