Solana in one minute
Solana is a blockchain network where independent validators maintain a shared ledger and execute applications. It is a Layer-1 network, meaning transactions settle directly on Solana rather than relying on another blockchain for base-layer settlement.
How does Solana work?
At a high level, users and applications create transactions, validators process them, and the network agrees on the resulting state. Solana's architecture is built around a fast execution environment and an explicit way to order events.
The transaction contains one or more instructions and identifies the accounts those instructions need.
Required signers authorize the requested actions with cryptographic signatures.
Transactions are forwarded toward the current leader, which schedules and executes transactions for its slot.
Validators vote on the ledger state using Solana's stake-weighted consensus process.
Proof of Stake and Proof of History
Solana's consensus is based on Proof of Stake (PoS). Validators participate in consensus, and stake delegated to validators contributes to the weight of their votes. Proof of History (PoH) acts as a cryptographic clock: a sequential chain of hashes provides evidence that time passed and helps establish the order of events.
This separation is useful because distributed systems normally spend substantial effort agreeing on timing and ordering. PoH gives validators a common time-ordering reference that Tower BFT, Solana's consensus implementation, can use.
Accounts, programs and instructions
Solana's programming model is easier to understand if you separate code from state.
Accounts
Accounts are the fundamental storage units for state. Each account is identified by a 32-byte address and contains fields such as its lamport balance, data and owner.
Programs
Programs are Solana's smart contracts. They contain executable code and are stateless; mutable application state lives in separate data accounts.
Instructions
An instruction asks one program to perform a specific operation. It names the program, provides the relevant accounts and includes data the program interprets.
That model differs from platforms where a smart contract commonly stores both code and state together. On Solana, separating programs from data accounts makes it possible for the runtime to identify which state a transaction intends to read or write.
What is a Solana transaction?
A transaction is Solana's atomic unit of execution. It contains signatures plus a message describing account addresses, a recent blockhash and one or more compiled instructions.
Atomic means the instructions in a transaction succeed together or the state changes are rolled back together. Network fees can still be charged when execution fails.
How much do Solana transactions cost?
Every transaction pays a fee in SOL. According to the current Solana documentation, the standard base fee is 5,000 lamports per signature. A transaction can also include an optional priority fee to improve scheduling priority when there is competing demand.
One SOL contains one billion lamports. Applications can also need SOL for account storage balances when creating new onchain accounts. Those storage balances are separate from the ordinary transaction fee and can be recoverable when an account is closed, depending on the account and program involved.
What is SOL used for?
SOL is the native asset of the Solana network. Its protocol-level roles include paying transaction fees and participating in staking.
Staking
SOL holders can delegate stake to validators. Delegated stake contributes to the network's stake-weighted consensus and can earn protocol rewards. Reward rates are not fixed: they depend on factors including network inflation, the amount of SOL staked, validator performance and validator commission.
Staking involves financial and operational considerations, so this guide treats it as a network mechanism rather than an investment recommendation.
Tokens and assets on Solana
Besides SOL, applications can issue and manage other digital assets through Solana token programs. These can represent stablecoins, project tokens, wrapped assets, collectibles and other forms of onchain ownership.
A useful distinction is that SOL is native to the protocol, while other tokens are represented through token programs and their associated accounts.
What is Solana used for?
What should you understand before using Solana?
No blockchain architecture is free of trade-offs. Solana prioritizes high-performance execution and low transaction costs, but that design also creates different operational and development requirements.
- Validator requirements: operating a validator is infrastructure-intensive compared with simply using the network.
- Programming model: the account/program model is powerful but can be unfamiliar to developers coming from account-based smart-contract platforms.
- Fees are low, not zero: transactions require SOL for network fees, and some operations require account creation or additional priority fees.
- Applications add their own risks: using Solana does not make every token, wallet, protocol or smart contract safe. Application risk must be evaluated separately from the base network.
Where should you go next?
Frequently asked questions
Is Solana a cryptocurrency or a blockchain?
Solana is a blockchain network. SOL is the network's native asset, used for purposes including transaction fees and staking.
Is Proof of History Solana's consensus mechanism?
Not by itself. Solana uses a Proof-of-Stake-based consensus system. Proof of History provides a verifiable clock and event ordering that supports the network's consensus process.
What are programs on Solana?
Programs are executable smart-contract code. Programs are stateless; mutable state is stored in separate data accounts that instructions pass to the program.
Are Solana transactions free?
No. Transactions require fees paid in SOL. The current base fee is 5,000 lamports per signature, and an optional priority fee can be added.
What is the difference between SOL and other Solana tokens?
SOL is native to the network and is used for protocol functions such as fees and staking. Other assets are generally created and managed through token programs.
Is Solana Factory part of Solana?
No. Solana Factory is an independent informational project and is not affiliated with or endorsed by the Solana Foundation or Solana Labs.
Sources and further reading
This page was reviewed against current first-party Solana documentation. For protocol details that may change, the official documentation should be treated as the primary technical reference.
Editorial note: Solana Factory is independent. References to Solana, SOL and related trademarks are descriptive. Third-party trademarks belong to their respective owners. Nothing on this page is financial advice.