Solana (SOL)

Solana (SOL) is a high-performance blockchain designed for speed and low transaction costs. Launched in 2020 by Anatoly Yakovenko, Solana quickly gained attention as a fast, scalable alternative to Ethereum — often nicknamed the “Ethereum killer”.

What is Solana?

Solana is a Layer-1 blockchain focused on performance. It combines Proof-of-Stake with a unique innovation called Proof-of-History (PoH), which timestamps transactions to process them more efficiently.

Launch year: 2020
Founder: Anatoly Yakovenko & Solana Labs
Consensus mechanism: Proof-of-Stake + Proof-of-History
Native token: SOL

How Does Solana Work?

Solana’s speed comes from its hybrid approach:

Proof-of-History: provides a cryptographic clock, letting validators agree on the order of transactions quickly.
Proof-of-Stake: validators secure the network by staking SOL.
High throughput: Solana can handle thousands of transactions per second (far more than Ethereum).
Low fees: transactions cost fractions of a cent.

Why is Solana Important?

Scalability: among the fastest major blockchains.
DeFi & NFTs: strong ecosystem for decentralized apps, NFT marketplaces, and DeFi protocols.
Low cost: microtransactions and gaming projects thrive due to cheap fees.
Growing adoption: major NFT collections and DeFi apps migrated or launched on Solana.

Solana Use Cases

DeFi: decentralized exchanges, lending, and yield farming.
NFTs & Gaming: popular NFT projects (e.g., Degenerate Ape Academy) and blockchain games.
Payments: low fees make it suitable for micropayments and global transfers.
Web3 apps: developers build social platforms, marketplaces, and tools on Solana.

Risks of Solana

Network outages: Solana has experienced several high-profile downtimes.
Centralization concerns: relatively small validator set compared to Ethereum.
Competition: faces rivals like Ethereum, Avalanche, and Polygon.
Regulatory pressure: like all blockchains, uncertain legal environment.

Lanzo Tip 🪙

Solana is fast and cheap, but don’t ignore its network stability issues. If you try DeFi or NFTs on Solana, test with small amounts first — speed means nothing if your funds are stuck during downtime.