AION Explained
What Is Solana?
Solana is a public blockchain built for applications that need frequent, low-cost transactions. SOL is used to pay network fees, stake with validators and interact with applications on the network.
How Solana processes activity
Solana combines a proof-of-stake validator network with a method for recording transaction order called proof of history. This design aims to let validators process activity efficiently, but transaction throughput and fees can still change with demand and network conditions.
- Validators propose and confirm blocks
- SOL pays transaction fees
- Programs provide smart-contract functionality
Staking and applications
SOL holders can delegate to validators to participate in staking. Delegation does not remove the need to assess validator reliability, wallet safety or the risks of applications using the network.
- Delegated staking
- On-chain exchanges and payments
- Consumer and creator applications
Principal risks
SOL is volatile. Users can also face network disruption, malicious signing requests, smart-contract bugs, phishing and losses from bridges or application failures. A low transaction fee does not make a transaction reversible.
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