L1

Solana SOL

A high-throughput Layer 1 blockchain optimized for low fees and fast finality, popular for DeFi, payments, and consumer applications.

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Founded
2020
Founder
Anatoly Yakovenko, Raj Gokal
Consensus
Proof-of-Stake + Proof-of-History
Max Supply
Inflationary, decreasing schedule

What SOL is

Solana is a Layer 1 blockchain designed for high throughput and low transaction costs. Where Ethereum prioritizes decentralization and is scaling primarily through L2s, Solana takes the opposite approach: a single fast Layer 1 that aims to handle thousands of transactions per second directly. The network was founded in 2020 by Anatoly Yakovenko, a former Qualcomm engineer, with co-founder Raj Gokal at Solana Labs.

Solana introduced Proof-of-History (PoH) as a complement to its Proof-of-Stake consensus: a verifiable delay function that timestamps transactions before they are voted on, letting validators agree on transaction order without expensive coordination. This design enables block times of around 400 milliseconds and theoretical throughput of tens of thousands of TPS. Real-world throughput in 2026 is in the low thousands TPS range during normal operation.

How it works

Solana validators run high-spec hardware (typically 12+ CPU cores, 256+ GB RAM, NVMe storage) to keep up with the high block production rate. Staking SOL with validators secures the network and earns rewards (~5-7% APY in 2026). The network has experienced several outages in its history, primarily due to mempool flooding during high-demand events (NFT mints, popular token launches), which prompted multiple protocol-level upgrades to mitigate.

Smart contracts on Solana are called "programs" and are typically written in Rust or C, compiled to BPF (Berkeley Packet Filter) bytecode. Programs are stateless; state is held in separate accounts. This is structurally different from Ethereum's account-and-storage model and trips up developers coming from EVM ecosystems, but enables some of Solana's parallelism advantages.

Use cases

Solana hosts a large DeFi ecosystem (Jupiter for DEX aggregation, Marinade for liquid staking, Drift for perpetuals), a thriving NFT scene (Magic Eden marketplace, Tensor), and an unusually active consumer-app sector (Phantom wallet, Backpack, blink-style social payments). Stablecoins are widely used: USDC has significant supply on Solana, and USDT migrated meaningful supply onto Solana for trading and remittance use cases. Pyth Network, an oracle protocol, uses Solana as its native chain.

Tradeoffs and criticism

Solana's main tradeoffs are validator hardware requirements (which limit how decentralized the validator set can become), historical reliability issues (multiple multi-hour outages between 2021 and 2024), and a different developer toolchain that doesn't share libraries with EVM ecosystems. The network has matured significantly through 2024-2026, but ongoing scrutiny of validator distribution and economic centralization remains. Critics argue Solana trades meaningful decentralization for performance; supporters argue the tradeoff makes consumer-scale applications viable.

Where to track SOL

Live Solana network health (TPS, slot time, epoch progress) is at /api/solana-network. See the validator entry for context on Solana's staking model.

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Frequently asked questions

How is Solana different from Ethereum?
Solana prioritizes Layer 1 throughput; Ethereum prioritizes decentralization and scales via Layer 2 networks. Solana has block times around 400ms vs Ethereum's 12 seconds. Fees are typically a fraction of a cent on Solana vs $0.50-$5 on Ethereum L1.
What is Proof-of-History?
Proof-of-History is a verifiable delay function Solana uses to timestamp transactions. It lets validators agree on the order of transactions without expensive coordination, enabling Solana's high throughput.
Does Solana support smart contracts?
Yes. Solana programs (its term for smart contracts) are written in Rust or C and compiled to BPF bytecode. The execution model differs from Ethereum: programs are stateless and state lives in separate accounts.
What is the staking yield on Solana?
In 2026, staking SOL with a validator earns roughly 5-7% APY (varies with total network stake and inflation parameters). Liquid staking via Marinade or Jito provides liquid representations of staked SOL.
Has Solana had outages?
Yes, multiple times between 2021 and 2024, mostly due to network congestion during high-demand events. The protocol has been hardened through several upgrades; 2025-2026 uptime has been substantially better than earlier years.