# Solana Explained Source: https://dedge.pro/solana-explained/ [ACADEMY](https://dedge.pro/dedge/academy/) / SOLANA FUNDAMENTALS dEdge Academy · 6 min read · Published 2025-08-07 This guide preserves the original educational material. Screenshots and third-party interfaces may have changed. dEdge provides research; third-party tools execute trades. For current dEdge limits and subscriptions, see [current plans](https://app.dedge.pro/pricing). ![Illustration from Solana Explained](https://dedge.pro/images/academy/6c509fa7861a0472.png) ## **Solana in One Sentence** Solana is a high-performance blockchain designed to power the next generation of crypto apps — from lightning-fast DEXs to NFT marketplaces — with **web-speed transactions and near-zero fees** . It was created by **Anatoly Yakovenko** , an ex-Qualcomm engineer, who believed that time — not just consensus — was the missing ingredient in making blockchains truly scalable. By introducing a cryptographic clock and rethinking how transactions are processed, Solana set out to fix the blockchain trilemma: how to be **fast** , **secure** , and **decentralized** — all at once. In simple terms? Solana is the **financial backbone of the internet** , built not just to support crypto — but to upgrade how we move value, permissionlessly, at scale. ## What Makes Solana Unique Solana isn’t just another blockchain — it’s **built different** . While most chains compromise between speed, cost, and decentralization, Solana pushes all three boundaries at once. Here’s what sets it apart: #### **Fast AF** Solana can handle over **65,000 transactions per second (TPS)** — with the tech to scale even higher. Compare that to Ethereum’s ~15 TPS, and the difference is night and day. It’s the kind of speed that makes **real-time crypto apps** actually usable. ![Illustration from Solana Explained](https://dedge.pro/images/academy/a99f63a4cefeb67d.jpg) #### **Dirt Cheap** On Solana, you can trade, mint, or move assets for **less than $0.001** . That means more trades, more users, and less friction — whether you’re deploying bots, minting NFTs, or running airdrops.   #### **No Layer 2 Needed** While Ethereum leans on rollups and Layer 2s to scale, Solana **scales at the base layer** . No bridges, no wrappers, no fragmentation — just one unified chain built for throughput.   #### **Dev-First, Ecosystem-Ready** Solana’s growing army of developers are building in: - **DeFi** (Jupiter, Kamino, Drift) - **NFTs** (Tensor, Famous Fox) - **Gaming** (Star Atlas, Shrapnel) - **Infra/Wallets** (Phantom, Backpack, Dialect) It’s a chain where builders aren’t waiting on tooling — they’re **shipping at speed** . Bottom line? **Solana is the first blockchain that feels like the internet.** Instant, cheap, scalable — and ready for whatever crypto builds next. ## **Why Solana is So Fast (The Secret Sauce)** Solana isn’t fast by accident — it’s fast by design. At its core is a breakthrough called **Proof of History (PoH):** ### What is **Proof of History (PoH)** ? **Proof of History** is Solana’s secret weapon — a new way of telling time on a blockchain. In traditional blockchains, nodes must **talk to each other** and agree on the _order_ of transactions before anything gets confirmed. This slows things down.   Solana flips that model. With PoH, it creates a **verifiable, cryptographic timestamp** for every transaction _before_ consensus happens. Imagine a public clock that everyone can check — and no one can fake. Every event on the network gets locked into a timeline that’s mathematically provable and tamper-proof. ![Illustration from Solana Explained](https://dedge.pro/images/academy/bce9dd9018884e55.png) Here’s how it works (simply): - Solana uses a **SHA-256 hash function** (same as Bitcoin). - Each output becomes the **input for the next** , forming a long, linked chain of hashes. - This chain proves that time has passed — and that things happened in a specific order — _without needing to ask anyone_. ⏱️ Think of it like a **stopwatch baked into the blockchain** . It keeps perfect time, allowing Solana to process thousands of transactions in parallel — securely, efficiently, and lightning-fast.   This innovation is what allows Solana to scale _at the base layer_, without needing rollups or Layer 2 solutions. ### What is **Proof of Stake (PoS)** ? **Proof of Stake (PoS)** is how Solana secures its network and decides who gets to validate transactions — _without needing energy-heavy mining like Bitcoin_.   Instead of using computers to solve puzzles (Proof of Work), PoS relies on **skin in the game** . ![Illustration from Solana Explained](https://dedge.pro/images/academy/fc6bb9e305b45a36.png) Here’s how it works: 1. **Validators** : These are the network participants who process and confirm transactions. 2. **Staking** : To become a validator (or support one), you have to **lock up SOL tokens** — like a security deposit. 3. **Selection** : The more SOL you stake, the higher your chances of being chosen to validate the next block. 4. **Rewards** : If you play fair, you earn rewards (more SOL). If you try to cheat, your stake can be slashed. In Solana’s case, PoS is combined with **Tower BFT** — an optimized consensus system that helps validators agree quickly and securely on the network’s state. ✅ **Why it matters** : - **Efficient** : No expensive hardware or wasteful energy use. - **Incentivized** : Validators are rewarded for good behavior. - **Decentralized** : Anyone can stake SOL to support the network. Together with **Proof of History** , PoS helps Solana stay fast _and_ secure — even at massive scale. ### **Turbine & Sealevel: How Solana Stays Fast at Scale** Solana doesn’t just rely on clever consensus — it also optimizes how data moves and how smart contracts execute. Two key innovations make that possible: **Turbine** and **Sealevel** .   #### Turbine: Speeding Up Data Transmission Imagine trying to send a huge file to thousands of computers at once — it would choke most networks. **Turbine** solves this by **breaking data into tiny chunks** and distributing them piece by piece, like BitTorrent. Each node only passes along small parts to others nearby, instead of flooding the whole network at once.   **Result** : Faster, more reliable communication across a global network of validators — even as Solana scales.   #### Sealevel: True Parallel Execution Most blockchains process smart contracts **one at a time** , which creates bottlenecks. **Sealevel** lets Solana **run thousands of smart contracts in parallel** — _as long as they don’t touch the same state_ (data). It’s like upgrading from a single-lane road to a multi-lane expressway.   **Result** : Massive throughput and real-time performance for DeFi, NFTs, games, and trading bots — all without slowing down the chain.   Together, **Turbine** and **Sealevel** turn Solana into a blockchain built for serious speed — not just in theory, but in practice.   ## **What You Can Do on Solana** Solana isn’t just fast — it’s _useful_. Its low fees, instant finality, and scalable design make it a playground for crypto builders and power users alike.![Illustration from Solana Explained](https://dedge.pro/images/academy/6c2aa92a5a2bdb35.png) **SOL** is the lifeblood of the Solana ecosystem — the fuel that powers everything from transactions to smart contracts to staking rewards. Here’s what’s happening _right now_ on Solana:   ### Trade on DEXs Solana is home to **lightning-fast decentralized exchanges** like **Jupiter** — where traders can swap tokens with near-zero slippage and minimal fees. Perfect for scalpers, bots, and alpha hunters.   #### Transaction Fees Every time you send tokens, trade on a DEX, or mint an NFT on Solana, you pay a tiny fee in **SOL** — usually just **fractions of a cent** . It keeps the network clean, fast, and spam-resistant.   #### Staking & Security You can **stake SOL** to help secure the network. Validators (and their delegators) lock up SOL as a guarantee of honest behavior — and earn rewards in return.   ### Mint & Trade NFTs Platforms like **Tensor** and **Magic Eden** let users mint, buy, and sell NFTs at a fraction of the cost of Ethereum. That means fast launches, low-risk flips, and new NFT mechanics like compressed NFTs or real-time metadata updates.   #### Smart Contract Execution Just like ETH on Ethereum, **SOL** is used to run programs on Solana — from DeFi protocols to NFT drops to on-chain trading bots. Every instruction costs a little SOL.   ### Run Copy Trading Bots Solana’s speed and data availability power advanced trading tools — like **dEdge** , where users can copy elite wallets, track sniper trades, or build automated strategies directly on-chain.   ### Build Fast dApps Developers love Solana for its **real-time execution** and **cheap compute costs** . You’ll find apps across: - DeFi (Jupiter, MarginFi) - Real-world assets (Helium) - Social (Backpack, Dialect) - Wallets (Phantom, Backpack, Solflare) ### Efficient and Scalable Unlike Bitcoin or Ethereum (pre-merge), Solana uses a **green, energy-efficient** Proof of Stake system. That means no mining, no waste — just speed and scale. In short: **SOL is to Solana what gas is to a racecar.** Without it, nothing moves. With it, everything runs fast, clean, and at near-zero cost.   ## **Conclusion: Why It Matters** Solana isn’t just another blockchain — it’s a **performance layer for the internet of value** . With speed, affordability, and an exploding ecosystem, it’s enabling a new wave of DeFi, NFTs, and on-chain tools like copy trading.   But real adoption means real scrutiny. To trade smarter, build faster, or copy better, you need to know **not just what Solana does — but how it works.**   The edge isn’t in the hype. It’s in the **understanding.** ### Put the context to work. Start with a free public wallet report. Look at the analysis window, the returns and the details. [Research a wallet ↗](https://app.dedge.pro/) ## Keep learning. [All guides ↗](https://dedge.pro/dedge/academy/) Solana fundamentals · 11 min ### CEX vs DEX – What you need to know Read guide ↗ [View page](https://dedge.pro/cex-vs-dex-what-you-need-to-know/) Solana fundamentals · 7 min ### What is Jito, BloXroute and SWQoS? Read guide ↗ [View page](https://dedge.pro/what-is-jito-bloxroute-and-swqos/) Solana fundamentals · 4 min ### Solana Fees Explained Read guide ↗ [View page](https://dedge.pro/landing-transactions-on-solana-3/) --- [Agent content index](https://dedge.pro/llms.txt)