History of Solana
The development of Solana began in 2017 when Anatoly Yakovenko published a description of the Proof of History (PoH) mechanism. The new consensus algorithm was designed to automate the ordering of transactions in the blockchain, reducing processing time and providing higher calculation speeds.
Soon after, Greg Fitzgerald and Steven Akridge joined the project, initially named Loom. In February 2018, the first test network was launched. In April 2018, the token sale ($SOL ) began, allowing the project to raise over $20 million by July 2019. Concurrently, work was underway on new versions of the blockchain.
The main network (Mainnet) and Solana cryptocurrency ($SOL ) were launched in March 2020. In the same year, the non-profit organization Solana Foundation was established to support and develop the blockchain. In October 2020, the Solana-Ethereum cross-chain bridge was launched, as well as the first stablecoin on the new network (SOLUSDT).
The platform is currently continuing its active development, offering developers and users new tools: from the Solang compiler to its own blockchain smartphone, Saga. In March 2025, the Solana (SOL) exchange-traded fund (ETF) was launched.
Technical features of Solana
Solana is a high-throughput network that uses a hybrid consensus mechanism: Proof-of-History + Proof-of-Stake. PoS is used for transaction confirmations by validators. PoH operates alongside this algorithm and ensures node synchronization.
It adds timestamps to each transaction, ordering them and allowing for efficient tracking of operations. As a result, there are no 'queues' for block confirmations in the network, enabling high throughput.
Solana employs the Turbine transaction transmission protocol. It breaks down operations into smaller packets before sending them to blockchain nodes, ensuring the fastest possible data transmission. The Sealevel parallelization mechanism allows multiple operations to be processed simultaneously, while the Gulf Stream protocol reduces the memory load on validators.
These technologies allow Solana to avoid relying on segmentation and remain a first-tier blockchain. The network offers users high speed, scalability options, and tools to create dApps directly on the blockchain. The network fees are minimal — around 0.0001 SOL ($0.01).
Solana (SOL): basic information
SOL is a cryptocurrency that serves as the internal token of Solana. It is one of the largest coins in the crypto market: it is in the TOP-10 coins by market capitalization.
The Solana token is a native utility token used for internal operations within the network. Its primary purpose is to pay fees and earn rewards through staking. In addition, the Solana cryptocurrency is used in DeFi applications, on NFT marketplaces, and in other elements of the ecosystem. SOL holders also have the opportunity to influence the network by voting on various changes and acting as validators.
Solana is a cryptocurrency that operates on the SPL protocol. A deflationary model is used to maintain value — part of the tokens is burned, which helps control supply and preserve the value of the coin.
Advantages of Solana (SOL)
Solana is a cryptocurrency that is popular for a number of reasons:
Processing speed. The Solana blockchain was launched with the aim of becoming the 'VISA of the cryptocurrency world', and developers have achieved this goal. Throughput reaches 50,000 transactions per second.
Staking. Many users turn to staking as a way to earn passive income in crypto. Solana offers a range of opportunities for earning such income: this option is available in most wallets.
Low fees. The cost of processing a transaction typically does not exceed $0.01. This is more cost-effective than transactions via Bitcoin or Ethereum — especially for active users or companies planning to accept crypto payments.
Scalability and ecosystem for developers. Solana is a crypto platform whose ecosystem includes a wide range of decentralized projects and applications, and its scalability capabilities allow the network to handle large volumes of transactions.
Reliability and security. Solana is an open-source project. The team of creators and the user community actively work on the development of the platform and the implementation of innovative security mechanisms.
Integration with DeFi and NFT. Decentralized applications and NFTs are key elements of the ecosystem. Solana offers users access to a wide range of services and the second-largest NFT market after Ethereum. High throughput ensures the fast operation of applications.
Eco-friendliness. Solana strives for carbon neutrality and minimal energy consumption. Energy emissions are tracked in real-time, and the platform's ecosystem includes a range of services focused on finding eco-friendly solutions.