Investing in Solana

By   |   Verified by Andrew Boyd   |   Updated 5th December 2021

Solana (SOL) is the world’s fastest blockchain. Thanks to a third generation architecture, it can process 50,000 transactions per second.

Launched in 2019, Solana is one of the fastest-growing blockchain-based platforms in the world and has experienced rapid adoption among the decentralized application (dApp) ecosystem. More than 400 projects plan on using Solana.

Use our helpful guides to find out more about how it works, what it can do, and how you can invest in it.

What is Solana?

Solana is a third generation permissionless, decentralized, and programmable blockchain-based platform. Its native token is called SOL. Unlike many other cryptocurrencies, Solana uses a consensus mechanism that combines two validation protocols: Proof of History and Proof of Stake. While the former makes the transaction more secure, the latter reduces energy consumption to a minimum.

Unlike Bitcoin and Ethereum, you cannot mine SOL tokens. Instead, validation is carried out in proportion to the tokens you own. Solana verifies the time interval between two transactions using a cryptographically secure function, meaning it stays secure while processing transactions without awaiting global consensus.

Like Ethereum, Solana also has smart contract functionality.