What is Solana?

Solana is a fast, low-fee blockchain built for high-volume apps — a public, decentralized network designed to process a very large number of transactions while keeping fees extremely low. Its goal is to scale blockchain technology toward mainstream usage, supporting demanding applications that need both speed and affordability.

What makes Solana distinctive is its focus on high throughput: rather than capping how much it can handle, it's engineered to push transaction volume far higher than many older networks, making it a popular home for active, real-time crypto applications.

In one sentence
Solana is a high-speed, low-fee blockchain designed to handle huge transaction volumes for DeFi, NFTs, payments and consumer apps.

Who created it & why

Solana launched in 2020 and was founded by Anatoly Yakovenko. The motivation was to build a blockchain that could keep up with mainstream demand — one fast enough and cheap enough to support high-volume, everyday applications rather than only occasional transactions.

That ambition shaped every design choice: the network prioritizes raw performance, aiming to make sending value and running apps feel quick and inexpensive.

How Solana works

Solana records transactions on a blockchain — a shared public ledger maintained by a network of computers. A few ideas give it its speed:

Proof of stake & proof of history

Solana uses proof of stake, where validators stake SOL to help secure the network, combined with a technique called "proof of history." Proof of history timestamps transactions so the network can agree on their order more efficiently — a key part of how Solana achieves its high throughput.

High throughput & low fees

By ordering transactions efficiently, Solana can process a very large number of them at once while keeping fees very low. That's what makes it well-suited to busy, real-time applications that would be costly on slower chains.

Self-custody

You hold SOL using a wallet and a private key. Whoever controls the key controls the coins, so keeping it safe is essential — see our security guide.

What it's used for

  • DeFi: Solana supports smart contracts and is widely used for DeFi — decentralized trading, lending and more.
  • NFTs & consumer apps: a popular platform for NFTs, games and other consumer-facing applications.
  • Payments & fees: SOL is the native token used to pay network fees and for staking that helps secure the network.

Strengths & trade-offs

Strengths

  • Very fast transaction processing
  • Very low fees
  • Large, growing ecosystem of apps
  • Well-suited to high-volume applications

Trade-offs

  • History of network outages and congestion
  • More centralized validator set than some chains
  • Higher hardware requirements for validators
  • Volatile price

Key takeaways

  • Solana is a fast, low-fee blockchain built for high-volume apps.
  • It launched in 2020 and was founded by Anatoly Yakovenko.
  • It uses proof of stake plus "proof of history" to order transactions efficiently.
  • It's widely used for DeFi, NFTs, payments and consumer apps.
  • SOL has no hard cap; its supply is inflationary with a gradually decreasing issuance rate. The network has also experienced outages as a known trade-off.

Frequently asked questions

What is Solana in simple terms?

It's a fast, low-fee blockchain designed for high-volume apps. It can process a very large number of transactions, which makes it popular for DeFi, NFTs, payments and consumer applications.

Who created Solana?

Solana launched in 2020 and was founded by Anatoly Yakovenko, who designed the network around high throughput and low transaction costs.

What is "proof of history"?

It's a technique Solana uses alongside proof of stake to timestamp transactions, helping the network order them efficiently and process them quickly.

What is SOL used for?

SOL is Solana's native token, used to pay network fees and for staking. Its supply is inflationary with a gradually decreasing issuance rate and no hard cap.