Solana is a blockchain that allows developers to build decentralized applications — similar to Ethereum — that can scale with user demand. SOL is the network's native cryptocurrency.
Solana boasts the ability to process 50,000 transactions per second, a figure that is far greater than many legacy blockchains such as Bitcoin and Ethereum. To this end, the project's official website has a feature that invites skeptical users to "stress test" the network.
From exchanges to payments networks, Solana says it supports the creation of decentralized infrastructure. Its goal of "Web 3.0 with Web 2.0 speed" is delivered through block times of 400 milliseconds, with finality achieved in under a second. Developers can also code in a language that they are familiar with — including Rust, C and C++.
With high transaction fees a lingering concern for many users, as well as the organizations that hope to build on the blockchain, Solana says its approach helps to keep costs down — even as user numbers increase. Ultimately, the project is confident that it can support applications with "billions of users."
The technical underpinnings for Solana can be traced back to a white paper that was released in late 2017. In the document, one of the project's cofounders, Anatoly Yakovenko, advocated for a new form of blockchain architecture based on a consensus mechanism called proof-of-history — automating the way that transactions were ordered.
A total of five funding rounds were held for Solana, beginning in April 2018 and ending in March 2020. A beta version of Solana's mainnet launched in the same month.
SOL's price initially started trading at under $1 when it launched in the first half of 2020. Prices broke $1 for the first time in July 2020. 2021 proved to be a hallmark year for SOL as it traded above $250.
SOL has a deflationary model, which means that tokens are burned on a regular basis. This cryptocurrency can be used to pay transaction fees, as well as for staking. You can also earn passive income with SOL by staking it via OKX Earn.
Based in California, Solana's founding team include Anatoly Yakovenko, Greg Fitzgerald, Raj Gokal and Stephen Akridge. Solana Labs is its parent company — and employees at this business previously worked for the likes of Apple, Qualcomm, Intel, Google, Microsoft and Twitter.