Solana(SOL)
A high-performance Layer 1 blockchain optimized for speed and low transaction costs.
In-Depth Explanation
Solana achieves high throughput through parallel processing and proof-of-history timestamps. It processes thousands of transactions per second with sub-second finality and very low fees. The tradeoff is higher hardware requirements for validators, raising decentralization concerns. Solana has become a major DeFi and NFT hub despite several network outages in its history.
Related Terms
Layer 1
L1The base blockchain that provides security and consensus, such as Ethereum, Bitcoin, or Solana.
Consensus Mechanism
The method by which a blockchain network agrees on the current state of the ledger and validates new transactions.
Decentralized Finance
DeFiFinancial services built on blockchain technology that operate without traditional intermediaries.
More in Infrastructure
View all →Gas Fees
Transaction fees paid to validators/miners for executing operations on a blockchain.
Gwei
A denomination of Ether equal to one billionth of an ETH, commonly used to express gas prices.
Layer 2
L2Scaling solutions built on top of a base blockchain (L1) that process transactions off-chain while inheriting L1 security.
Layer 1
L1The base blockchain that provides security and consensus, such as Ethereum, Bitcoin, or Solana.