The SOL token is the native cryptocurrency of the Solana blockchain, a high-performance, open-source platform designed to host decentralized applications (dApps), smart contracts, and various Web3 services.
🔑 Key Functions of SOL
Transaction Fees: SOL is used to pay for transaction fees on the Solana network.
Staking & Security: Users can stake SOL to support network security and earn rewards.
Governance Participation: SOL holders can participate in governance decisions affecting the Solana ecosystem.
How Solana Works
Solana employs a unique combination of Proof of Stake (PoS) and Proof of History (PoH) consensus mechanisms. PoH provides a historical record that proves that an event has occurred at a specific moment in time, enhancing the efficiency and throughput of the network.
