What Is Solana (SOL)? How It Works, Features & Getting Started [2026 Guide]

Solana is a high-speed, low-cost Layer 1 blockchain capable of processing up to 65,000 transactions per second. Thanks to its unique Proof of History (PoH) technology, transactions are completed at a cost of approximately $0.02 each. This guide covers everything from how Solana works to how to buy SOL, explained in a beginner-friendly manner.

What You'll Learn

• What Solana is and how Proof of History (PoH) works
• How Solana compares to Ethereum in speed, fees, and TPS
• The key projects in Solana's ecosystem
• How to buy SOL and use Phantom Wallet

Solana is a high-performance Layer 1 blockchain whose mainnet launched in March 2020. It was designed by founder Anatoly Yakovenko, drawing on his telecommunications experience at Qualcomm. The native token is "SOL," which is used for network fee payments and staking (earning rewards by locking up tokens).

Its standout feature is processing speed. The network is designed to handle up to 65,000 transactions per second (TPS), and in practice processes around 1 billion transactions per week (as of March 2026). SOL ranks 7th by market capitalization (per CoinMarketCap, March 2026) and is one of the major altcoins.

The core technology behind Solana's speed is Proof of History (PoH). PoH is a mechanism that cryptographically proves the order and timing of transactions.

In traditional blockchains, validators need time to reach consensus on transaction ordering — "this transaction came first, that one came second." PoH pre-records the passage of time using a SHA-256 hash chain, dramatically shortening this consensus process. Like the face of a clock, it cryptographically stamps "this transaction occurred at this exact time," eliminating the need for validators to debate ordering.

PoH does not function as a consensus algorithm on its own — it is combined with PoS (Proof of Stake). PoH handles "time verification" while PoS handles "consensus formation," together enabling a fast and secure network.

Solana is often called an "Ethereum killer." Both have distinct strengths, and choosing between them depends on the use case.

Solana has an overwhelming advantage in speed and cost. On the other hand, Ethereum is highly regarded for its decentralization and security, and still boasts the largest DeFi TVL (Total Value Locked). See also our overview of altcoins.

Here is why Solana is supported by many developers and users.

• Exceptional Processing Speed: Up to 65,000 TPS — roughly 2,000 times Ethereum's capacity
• Low Fees: Approximately $0.02 per transaction. NFT minting and DEX swaps can be executed at minimal cost
• Growing Ecosystem: TVL exceeding $6.2 billion (as of February 2026, per DeFi Llama). Major projects like Jupiter, Magic Eden, and Phantom Wallet are thriving
• Low Environmental Impact: As a PoS-based chain, energy consumption is extremely low compared to Bitcoin's PoW
• Firedancer and Alpenglow: Major 2025–2026 upgrades further improving fault tolerance and speed

There are risks to understand when considering investment or use.

• History of Network Outages: Over 60 hours of cumulative downtime occurred between 2021 and 2024, primarily due to Agave client monoculture (~92% of validators running the same client)
• Decentralization Concerns: Compared to Ethereum, Solana has fewer validators and scores lower on decentralization
• Price Volatility: SOL's price is heavily influenced by market conditions, with past declines exceeding 90%
• Smart Contract Risk: DeFi protocols on Solana carry risks of hacking and vulnerabilities

With the introduction of the Firedancer client and Alpenglow upgrade, over 20% of validators have adopted Firedancer as of 2026, and fault tolerance has improved significantly. Testing environments have demonstrated throughput exceeding 1 million TPS.

As of 2026, Solana's TVL exceeds $6.2 billion (per DeFi Llama), with projects operating across DeFi, NFTs, gaming, and more.

DeFi (Decentralized Finance)

• Jupiter: Solana's largest DEX aggregator, processing over $700 million in daily swap volume with a TVL of $2.16 billion (as of February 2026)
• Raydium: An AMM (Automated Market Maker) DEX supporting liquidity provision and yield farming
• Marinade Finance: Solana's largest liquid staking protocol. Stake SOL while using mSOL tokens to participate in other DeFi protocols via staking

NFTs & Gaming

• Magic Eden: Solana's largest NFT marketplace, known for low fees and fast transaction finality
• Tensor: A platform specialized for NFT trading, offering advanced tools for professional traders

Infrastructure

• Pyth Network: An oracle service providing real-time price data, supporting Solana DeFi with high-speed financial data delivery
• Helium: A decentralized network for IoT (Internet of Things). A flagship project in the DePIN space

SOL can be purchased for as little as around ¥500 at OKJ (OKCoinJapan), a Japanese cryptocurrency exchange offering over 30 digital assets with a user-friendly interface and robust trading features.

The purchase process involves three steps:

1. Open an OKJ account: Visit the OKJ official website, register your email, and submit identification documents (driver's license or My Number card). Verification can complete as quickly as the same day
2. Deposit Japanese yen: Fund your account via bank transfer
3. Buy SOL: Purchase SOL through the "marketplace" or "exchange (order book)." The marketplace is simpler to use, but tends to have larger spreads (buy-sell price gaps). For lower costs, order book trading is recommended

You can also use automated recurring purchases to gradually accumulate SOL each month.

After purchasing, we recommend using Phantom Wallet. Phantom is the leading Solana-compatible wallet app, available as both a browser extension and mobile app. By sending your SOL from the exchange to Phantom, you can directly connect to dApps (decentralized applications) on Solana such as Jupiter and Magic Eden. Airdrops (free token distributions) are active in the Solana ecosystem, and building up transaction history on Phantom is a basic prerequisite for qualifying for future airdrops.

Q. Can beginners use Solana?

Yes. By installing Phantom Wallet, you can intuitively send and receive SOL and connect to dApps. With fees of approximately $0.02 per transaction, it is also well-suited for small-scale practice.

Q. Will Solana experience network outages again?

Major upgrades like Firedancer and Alpenglow have significantly improved fault tolerance. Over 20% of validators have adopted Firedancer as of February 2026. However, blockchain technology is still evolving, and the possibility of unforeseen issues cannot be completely ruled out.

Q. How much do I need to start buying SOL?

You can start buying SOL from around ¥500 at OKJ (OKCoinJapan). We recommend starting with a small amount using only funds you can afford to lose.

Q. Which is better, Solana or Ethereum?

It depends on the use case. If you want fast, low-cost transactions or enjoy NFTs and meme coins, Solana is a good choice. If you value DeFi stability and decentralization, Ethereum is more suitable. Many users use both.

Q. Can I stake SOL?

Yes. You can earn staking rewards simply by holding SOL. The annual yield is approximately 6–8% (as of March 2026), and you can stake directly through Phantom Wallet.

Solana (SOL) is a Layer 1 blockchain that achieves up to 65,000 TPS of high-speed processing and fees of approximately $0.02, powered by its proprietary PoH technology. Its ecosystem is rapidly growing with projects like Jupiter, Magic Eden, and Phantom Wallet, and DeFi TVL exceeds $6.2 billion.

The introduction of Firedancer and Alpenglow has significantly reduced past network outage risks, with further performance improvements expected in 2026. SOL can be purchased from around ¥500 at OKJ, making it an accessible option for cryptocurrency beginners.

To compare other Layer 1 chains, see "What Is Ripple (XRP)?." For decentralized finance, check out "What Is DeFi?." For an overview of altcoins, read "What Are Altcoins?."

Sources

• Solana Official Website
• DeFi Llama — Solana
• CoinMarketCap — SOL