How it works

One way Solana achieves high transaction speeds is via a combination of the proof-of-stake consensus mechanism and a new mechanism called “proof of history.” Proof of history is designed to keep time between computers on a decentralized network without all the computers having to communicate about it and come to an agreement. 

Keep in mind

Like Ethereum, Solana is a computing platform that can interact with smart contracts. Smart contracts power a wide range of applications, from NFT markets and DeFi to games and decentralized lotteries. 

One reason a user might choose an app that runs on Solana over, say, Ethereum, is that speeds are high and congestion is low — resulting in very low fees. (But always remember that there can be risks associated with emerging crypto applications and technologies, from volatility to the potential for undiscovered smart-contract bugs to be exploited.)

Released: February 2018