What Are Solana’s Key Features?

What if there was a blockchain that was designed to process up to 65,000 transactions per second with near-zero fees? Meet Solana, one of the fastest and most scalable blockchain networks reshaping DeFi, NFTs, and Web3. Solana has a variety of features that make it particularly appealing:

• Unmatched Scalability: Solana delivers scale natively with 840 TPS on Layer 1. Ethereum averages only 15 TPS and relies on Layer 2s to scale.

• Minimal Transaction Fees: cost as little as $0.0005, with priority fees typically under $0.01 even during peak demand. 

• Growing Ecosystem: Hosts a diverse range of DeFi platforms, NFT marketplaces, and Web3 applications.

• Parallel Transaction Processing: Unlike Ethereum’s sequential transaction model, Solana’s Sealevel allows simultaneous execution, enhancing network efficiency.

With a continuously expanding ecosystem, Solana is rapidly transforming the blockchain landscape.

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How Did Solana Start?

The by Anatoly Yakovenko, a former engineer at Qualcomm. His vision was simple: solve blockchain scalability issues without compromising security or decentralisation.

With a background in distributed systems, Yakovenko introduced proof of history (PoH) as a revolutionary way to improve transaction speed and reduce the reliance on traditional time synchronisation methods.

The Solana network officially launched its mainnet in March 2020, offering a solution for high-speed and low-cost transactions. It has become one of the most widely adopted blockchain networks today. Its ability to process transactions at unprecedented rates attracted developers and projects looking for alternatives to Ethereum's congested and expensive network.

Solana's rapid rise was driven by its technology advantages and strong backing from investors and the crypto community. Today, Solana supports a thriving ecosystem of decentralised finance (DeFi), NFTs, and Web3 applications, establishing itself as a crucial player in the blockchain space.

How Does Solana Work?

Unlike Bitcoin's Proof of Work (PoW) and Ethereum's Proof of Stake (PoS) mechanisms, Solana combines PoH with PoS to enhance efficiency and scalability. This hybrid approach allows the network to operate faster and at a lower cost than many competitors.

Proof of History (PoH)

The system operates as a decentralised clock to apply timestamps to transactions before blockchain additions. The network operates more efficiently because nodes can verify transactions without extensive communications, resulting in fast processing and high-speed operations.

Traditional blockchains require nodes to agree on transaction order before validation, causing bottlenecks. PoH timestamps transactions before they reach the consensus mechanism, ensuring rapid processing and seamless ordering.

Proof of Stake (PoS)

Solana's network combines both Proof of History (PoH) and Proof of Stake (PoS) to achieve its security operations. Network validators need to stake SOL crypto tokens to become eligible for transaction verification responsibilities. Network security and decentralisation become stronger when validators stake higher amounts, which correspondingly improves their chances of becoming validators.

Sealevel Parallel Processing

Sealevel is Solana's transaction execution engine, allowing multiple smart contracts to run in parallel, unlike Ethereum, which processes transactions one at a time. Solana can handle thousands of smart contract executions simultaneously.

This hybrid consensus model enables Solana transactions to be processed at speeds exceeding 65,000 TPS, making it one of the fastest public blockchains available today.

What Is SOL?

SOL crypto functions as the native cryptocurrency of the Solana blockchain, powering the network's core operations and enabling its key functionalities. Beyond being a tradeable digital asset, SOL serves multiple critical roles within the ecosystem.

SOL acts as a utility token that enables the functioning of transactions and rewards network validators while executing smart contracts within the Solana network:

• Transaction Fees: The cost of conducting transactions on Solana does not exceed $0.01, which makes this blockchain one of the most affordable in terms of transaction fees.

• Smart Contracts and dApps: SOL crypto serves as the primary digital resource for developers who seek to deploy decentralised applications (dApps), including NFT marketplaces and DeFi protocols.

• Governance and Network Upgrades: Holders of SOL crypto have the right to vote on network upgrades alongside protocol changes and new feature updates.

• Liquidity and Market Activity: The cryptocurrency SOL stands as a leading token in market activity because it serves as a transaction hub involving DeFi protocols and Web3 and NFT functions.

SOL serves as the essential network asset that powers the Solana network development through its expanding role in DeFi and its increasing popularity among users.

Supply and Inflation Model

The is restricted to 511 million, yet the current floating supply has already exceeded 400 million SOL. Transacting on Solana causes a certain percentage of fees to burn, which decreases the overall quantity of SOL tokens, thus creating deflationary conditions. Through its economic mechanism, the platform controls both inflation levels and preserves value reliability.

As Solana's ecosystem expands, SOL remains a fundamental asset driving the network's growth and adoption.

The Solana Ecosystem and Its Use Cases

The that spans multiple industries, including DeFi, NFTs, gaming, and Web3 applications. Its low fees and high transaction speeds make it particularly attractive for applications requiring real-time processing and frequent user interactions.

Decentralised Finance (DeFi)

Solana has established a growing presence in the DeFi market through various key projects, including:

• Serum: A decentralised exchange (DEX) offering fast and low-cost trading.

• : A liquidity provider that enhances trading efficiency.

• Mango Markets: A decentralized trading platform for margin trading and lending.

Non-Fungible Tokens (NFTs)

The Solana NFT marketplace is booming thanks to low Solana transaction fees and fast minting speeds. Popular platforms include:

• Magic Eden: The largest Solana NFT marketplace.

• Solanart: A platform featuring exclusive NFT collections.

Web3 and Gaming

The Solana blockchain is also driving innovation in Web3 gaming and metaverse projects, with platforms like Star Atlas and Aurory leading the change.

Are There Any Risks With Using Solana?

Despite its impressive growth, Solana's scalability comes with some challenges that potential users and investors should understand. Like any blockchain network, Solana faces technical and operational risks that can affect its performance.

Network Outages

Solana has experienced multiple outages due to increased transaction loads. These disruptions, while less frequent in recent years, have raised concerns about network reliability during periods of high transaction volume. In response, Solana introduced major upgrades like the and targeted performance patches to improve overall stability under load. 

Centralised Concerns

When comparing Solana to  Ethereum, Solana’s validator network is smaller, which raises concerns about decentralisation. A more concentrated validator set could potentially impact the network's resistance to censorship and attacks.

Security Risks

Some Solana DeFi projects have been targeted by hacks and exploits. As with any blockchain ecosystem, smart contract vulnerabilities and security breaches remain ongoing challenges that require continuous vigilance from developers and users.

How To Buy Solana (SOL)

Looking to invest in Solana? You can on major exchanges, like , a platform available to users in Singapore.

Gemini holds an. As a full-reserve and compliant cryptocurrency exchange and custodian, Gemini prioritizes the security of your assets.

Here's how to buy SOL with Gemini in Singapore:

1. on Gemini’s website or download the , then click “Get Started.” 

2. Verify your identity (KYC) to enable trading and comply with Singapore's regulatory requirements.

3. Deposit funds in , or use USD or .

4. Buy SOL using market or limit orders on the trading interface.

Gemini supports SGD deposits through , making it convenient to fund your account and start trading. 

Solana in Singapore: Access and Safety

Singapore is a progressive hub for cryptocurrency adoption. One of the highest in the world, according to the .

[Image above taken from main report page]

For Singaporeans interested in Solana, understanding the local landscape is essential for safe and compliant participation.

Regulatory Context

MAS regulates cryptocurrency platforms through the Digital payment token service providers must be licensed by MAS to operate legally in Singapore. Gemini holds an IPA for the Major Payment Institution license from MAS, demonstrating our commitment to meeting Singapore's stringent regulatory standards as it progresses toward full licensing.

Accessing SOL

Singapore users can access SOL trading through regulated platforms that support local payment methods. Gemini offers SGD deposits via FAST transfers and PayNow, allowing you to fund your account instantly. 

When selecting a platform, prioritise:

• Exchanges with transparent fee structures

• Robust security measures

• Strict regulatory compliance

means all customer assets are held separately and not used for lending or other activities, providing an additional layer of protection.

Safety Considerations

To protect your investments, follow these best practices:

• Enable two-factor authentication (2FA) on your exchange account.

• Use cold storage wallets for long-term holdings that you don't plan to trade actively.

• Understand crypto tax obligations in Singapore. While Singapore does not impose capital gains tax on personal crypto investments, businesses dealing in cryptocurrencies may have different obligations. 

Consult Gemini’s for detailed information.

• Start small when learning the platform. Test deposits, trades, and withdrawals with small amounts before committing larger sums.

• Verify all withdrawal addresses carefully. Blockchain transactions are irreversible, so sending funds to the wrong address means permanent loss.

• For any suspicious activity, report them to .

Local Crypto Community

Singapore's crypto community is active and growing. Community engagements range from the grassroots level like local meetups and online forums to large on-ground events like . These avenues provide opportunities to learn from experienced traders and developers. However, always verify information independently and be cautious of investment advice from unverified sources and bodies.

What Is the Future of Solana?

Solana’s near-term roadmap is about speed with more resilience. 

To boost reliability, Solana is seeing the development and gradual rollout of Firedancer, an alternative validator client designed to add redundancy to the network. To maintain stability under load, Solana uses local fee markets to price only the crowded spots, stake-weighted quality of service (QoS) to prioritise traffic from honest, well-staked nodes, and QUIC (a modern internet protocol) to enhance network messaging speed. 

DeFi and consumer apps on Solana have grown with TVL alongside active NFT and payments use cases. On mobile, the original Saga paved the way for , which started shipping in August 2025. Seeker integrates Seed Vault and a native dApp store, making self-custody and on-chain apps more accessible on phones.

Greater client diversity and improved congestion controls are enhancing network stability, providing a stronger foundation for a growing application layer and increased daily on-chain activity. 

Security enhancements such as runtime hardening, audits, bug bounties, and safer developer tools help limit bugs and DeFi exploits while the ecosystem grows. These developments establish Solana as an innovative platform that moves toward faster and more accessible decentralised operations. 

today and explore one of the fastest-growing blockchain ecosystems.

FAQs

What is Solana and what does it do?

Solana is a high-performance blockchain platform that processes thousands of transactions per second with minimal fees. It provides the infrastructure for decentralized applications (dApps), DeFi protocols, NFT marketplaces, and Web3 gaming. Its unique proof of history (PoH) mechanism combined with proof of stake (PoS) enables faster transaction processing than most competing blockchains.

How is Solana different from Bitcoin?

Solana and Bitcoin serve different purposes and use different technologies. Bitcoin operates as a store of value and payment network using proof of work (PoW), processing about 7 transactions per second. Solana functions as a smart contract platform using proof of history (PoH) and proof of stake (PoS), processing approximately 65,000 transactions per second. While Bitcoin prioritises security and decentralisation above speed, Solana optimises for scalability and low transaction costs to support complex applications.

Is SOL legal to buy in Singapore?

Yes, SOL is legal to buy in Singapore. The Monetary Authority of Singapore (MAS) regulates cryptocurrency platforms through the Payment Services Act 2019, and digital payment tokens like SOL can be legally traded through licensed or approved platforms. 

Can I buy SOL in SGD?

Yes, you can buy SOL using Singapore Dollars (SGD) through platforms like Gemini that support local payment methods, allowing Singapore users to buy, sell, and hold SOL in compliance with local regulations. Gemini holds an In-Principle Approval (IPA) for the Major Payment Institution license from MAS. Users can deposit SGD via FAST bank transfers.