What is Solana? How the SOL blockchain works and what it's used for
By SendPay Business · · 2 min read
Solana is a public blockchain that launched in 2020. Its native token, SOL, pays transaction fees and is staked to help secure the network. It's known for fast confirmations and fees that are usually a fraction of a penny.
What it's used for
Apps built on Solana include crypto exchanges, stablecoin payments, games and NFT markets. Stablecoins such as USDC run on Solana as well as on Ethereum.
How it works
- Solana uses proof of stake, so SOL holders stake tokens with validators instead of mining.
- It adds a timing system called proof of history to order transactions quickly.
- Each transaction pays a small fee in SOL.
Solana vs Ethereum
Both run smart contracts. Ethereum is older and has more apps and value locked in it, and it often relies on add-on networks to keep fees low. Solana does more on its main chain, trading some decentralisation for speed, and it has had outages in the past.
Risks to know
SOL's price can swing sharply, and you can lose money. Crypto isn't protected by the FSCS. Only buy what you can afford to lose.
Where SendPay fits
SendPay platforms let your customers buy, sell and hold crypto under your own brand, with assets held by regulated partners and a trading fee you set. Check which coins your platform offers.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.