Despite its past financial ties with the now-defunct FTX cryptocurrency exchange and a severe bear market, Solana has made a remarkable comeback, rapidly emerging as a leading blockchain in decentralized finance (DeFi), non-fungible tokens (NFTs), gamified finance (GameFi), and other market sectors.
This article delves into Solana, the technology behind its blockchain, its key features, comparisons with other blockchains, and its future prospects.
What Is Solana (SOL)?
Solana was co-founded by Anatoly Yakovenko and Raj Gokal in 2018 as a high-throughput Layer 1 blockchain, officially launched in March 2020.
Known for its scalability and lightning-fast block times, Solana is one of Ethereum's most prominent competitors in the smart contract blockchain space. Its transaction fees are significantly lower than Ethereum's mainnet. In the last epoch, Solana users paid an average of just [$0.038](https://solanacompass.com/statistics/fees) in gas fees (based on SOL’s current price of $147.92).
Solana aims to drive mass adoption of blockchain technology through low fees and near-instant transactions. It targets markets like DeFi, GameFi, and NFTs, offering a more user-friendly alternative to Ethereum-based decentralized applications (dApps).
👉 Discover how Solana compares to Ethereum
The Technology Behind Solana
Two groundbreaking technologies set Solana apart.
First is Proof of History (PoH), a cryptographic clock that timestamps every transaction on the blockchain. By assigning digital records to events, PoH allows validators to process blocks without waiting for full network consensus, reducing block confirmation time to just 0.4 seconds.
Second is Tower Byzantine Fault Tolerance (Tower BFT), a customized Proof-of-Stake (PoS) consensus mechanism optimized for PoH. Tower BFT prioritizes liveness over consistency, minimizing delays by leveraging PoH’s timestamping.
Validators must stake SOL tokens to propose blocks. Successful validation earns SOL rewards, while malicious behavior is penalized via slashing mechanisms.
Key Features of Solana Blockchain
Solana’s standout features include:
- High scalability: Processes 65,000 transactions per second (TPS)
- Instant transactions: 0.4-second block times
- Low-cost operations: Powered by PoH and Tower BFT
- Enhanced UX: Ideal for DeFi, NFTs, and GameFi dApps
How Does Solana Compare to Other Blockchains?
| Feature | Solana | Ethereum | Binance Smart Chain (BSC) |
|------------------|------------------|------------------|---------------------------|
| Consensus | PoH + Tower BFT | PoS (post-Merge) | PoSA |
| TPS | 65,000 | ~15–30 | ~300 |
| Avg. Fee | $0.038 | $1–50+ | $0.10–$0.30 |
| Use Cases | DeFi, NFTs, GameFi | Smart contracts, DeFi | Low-cost DeFi |
FAQ Section
Is Solana better than Ethereum?
Solana offers faster transactions and lower fees, but Ethereum boasts a larger developer community and more established dApps.
What is SOL used for?
SOL powers transactions, staking, and governance on Solana’s blockchain.
How secure is Solana?
Its PoH + Tower BFT hybrid model ensures robust security, though Ethereum’s longer track record may inspire more trust.
Can Solana handle NFT transactions?
Yes, Solana is a top choice for NFTs due to its speed and low costs.
What’s Solana’s biggest challenge?
Past network outages have raised concerns, but ongoing upgrades aim to improve reliability.
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