Solana is an open BlockchainBlockchainA public ledger where transactions are grouped into blocks, each linked to the one before, so past records can't be altered without it showing. designed to process large numbers of transactions quickly and at low cost. SOL is the network's cryptocurrency: it pays for transactions, and it is staked to secure the network. Anatoly Yakovenko described the idea in 2017, and the network went live on 16 March 2020.
How does Solana work?
Solana uses proof of stakeProof of stakeA consensus method where crypto is locked up as a stake for the right to create blocks, and anyone who cheats can lose part of that stake.. ValidatorsValidatorA participant on a proof-of-stake network who locks up their own crypto as a stake to create and check blocks in return for rewards. stake SOL and take turns producing blocks, and a new block is added roughly every 0.4 seconds. From the start, the network has used proof of history, a kind of digital clock that proves the order in which events happened. The Alpenglow upgrade is due to take effect on 21 October 2026, and proof of history will then stop playing a role in consensus.
The base fee is 0.000005 SOL per signature, and half of it is burned. There is no cap on the number of SOL. New SOL issuance started at 8% a year and falls by 15% each year until it reaches 1.5%.
What is Solana used for?
Solana hosts payments in stablecoinsStablecoinA cryptocurrency designed to keep a steady price, usually by tracking the US dollar or another currency., DeFiDeFi (decentralised finance)Financial services, such as lending, saving and trading, that run on smart contracts on a blockchain instead of through a bank or other middleman., NFTs and memecoins, among other things. Visa began settling payments in USDC on Solana in September 2023.
What to keep in mind
The Solana network has halted several times, most recently for about five hours on 6 February 2024. The price of SOL swings a lot: between November 2021 and December 2022 it fell by more than 95%.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 18 October 2026.