Digital currency SOL
The **Solana (SOL)** coin is the native currency of the **Solana** network, launched in 2020, and is characterized by providing a high-performance blockchain infrastructure that supports decentralized applications and smart contracts at high speed and very low fees[1][2].
### Key features of Solana (SOL) currency and its network:
- **High processing speed** of up to around 65,000 transactions per second, making it one of the fastest networks among cryptocurrencies, with the ability to handle high transaction pressure without delays[1][2].
- **Very low transaction costs**, where transaction fees are often less than $0.01, making usage economical for both developers and users[1][2].
- The Solana network uses an innovative technology called **"Proof of History" (PoH)** alongside a Proof of Stake mechanism to ensure the speed and security of the network, providing a distributed timing for synchronizing transactions in a very efficient manner[1][3][4].
- SOL is used as a means to pay transaction fees and participate in the network verification process (Staking) and support its security.
- The Solana network is considered a major competitor to Ethereum in terms of speed and efficiency, and is therefore sometimes referred to as the "Ethereum killer"[2].
- Despite the challenges it faced, such as network outages, Solana remains an active hub for decentralized finance (DeFi) projects, NFT applications, and meme coins[2][5].
- The SOL token is characterized as an inflationary token, but the inflation rate is small at about 1.5% annually, with a partially deflationary design in terms of supply to ensure relative stability of its value in the long term[1][6].
### Uses of SOL:
- **Fees:** Paying for data transfer and transactions on the network.
- **Staking:** Participating in network security and earning rewards.
- **Decentralized applications:** An entry point for use in DeFi services, NFTs, and digital games built on Solana.
Thanks to the above, Solana SOL is considered a popular choice for developers and investors looking for a fast, efficient, and low-cost blockchain network with a growing ecosystem and a promising future[1][2][7].