SOL – Solana Blockchain Token

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Solana Blockchain Overview

SOL is the native cryptocurrency token powering the Solana blockchain, currently ranked 6th globally by market capitalization at $60 billion (as of October 2021).

Solana has emerged as a leading open-source, decentralized blockchain platform. Its hybrid Proof-of-Stake (PoS) and Proof-of-History (PoH) consensus mechanism enables high-speed transactions with ultra-low fees (averaging $0.00025 per transaction). Like Ethereum, Solana supports smart contracts, fostering rapid growth in DeFi and GameFi projects. Key metrics (October 2021):

👉 Explore Solana's real-time blockchain stats


Solana Network Outage (September 2021)

While Solana boasts scalability (peaking at 50,000 TPS in tests), it faced a 17-hour outage due to an unprecedented 400,000 TPS surge—far exceeding Visa’s 1,700 TPS. Critics argue this undermines decentralization, whereas proponents highlight:

"Solana Mainnet Beta’s transaction queue overflowed at 400k TPS, causing network forks."
@SolanaStatus

SOL Token Utility

  1. Transaction Fees: Required for transfers/smart contract interactions.
  2. Staking Rewards: Users stake SOL to earn 5–10% APY (varies by validator commission rates).

👉 Compare SOL staking yields


FAQ

Q: How does Solana achieve high speed?
A: Its PoH+PoS model batches transactions timestamped via cryptographic clocks, reducing latency.

Q: Is SOL inflationary?
A: Yes, with a fixed 8% annual issuance rate, gradually decreasing via governance.

Q: Can Solana overtake Ethereum?
A: While Solana excels in scalability, Ethereum dominates developer activity and L2 solutions.

Keywords: Solana, SOL token, Proof-of-History, staking rewards, blockchain outage, DeFi, TPS


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