What is Solana cryptocurrency? SOL and the network
Solana is a public blockchain that runs apps, and SOL is its coin for fees and staking. Proof of history stamps transactions so validators agree on order.
Vahe HakobyanEditor-in-chief
Updated Oct 5, 20263 min readFact-checked
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The network and the coin are related but not the same. The network is the shared computer that runs programs, and the coin is the unit those programs charge and reward with. Its live price and market data sit on the Solana (SOL) coin page.
What is Solana?
The Solana blockchain page is a public platform that runs smart contracts. Its first block was created on March 16, 2020. Validators run software that keeps one shared record of accounts and programs. That record is the network, and SOL is the unit it uses.
What is SOL used for?
SOL is the native cryptocurrency of Solana, so it shows up in most activity on the chain. It pays the transaction fees, and holders can take part in some governance votes.
- Staking locks SOL to help secure the network, Solana says.
- DeFi apps use SOL for fees and as collateral.
- NFTs and other collectibles often trade in SOL.
- Decentralized applications charge and reward users in SOL.
How does Solana work and differ?
Solana uses proof of stake to choose validators, and it adds proof of history to give every transaction a place in time. That order helps the network process transactions quickly. The Ethereum blockchain page uses a different consensus design and has its own developer ecosystem.
Who created Solana and what are its risks?
Solana was founded in 2018 by Anatoly Yakovenko and Raj Gokal. Solana Labs, a San Francisco company, launched the mainnet in March 2020. Heavy traffic has caused outages; on September 14, 2021, a flood of transactions split the network and the chain stopped for about 17 hours. In 2023 the SEC named SOL as an alleged security in lawsuits against exchanges.
Frequently asked questions
It is a chain of hashes where each hash includes the last, so the record itself shows that time passed. Solana uses it as a clock so validators can agree on order.
Phantom and Solflare are built for Solana, and hardware wallets such as Ledger hold SOL too. Check that a wallet lists Solana before you send anything.
A court has not ruled that SOL is a security. The SEC's allegation in lawsuits does not automatically make it one, and the legal status can change as cases proceed.
