SOL (Solana) is a cryptocurrency token that powers the Solana Protocol, a decentralized Layer 1 blockchain platform for smart contracts, DeFi, and NFTs. SOL tokens are used for:
- Paying for transaction fees and gas fees
- Staking and securing the network through proof-of-stake (PoS) consensus
- Creating and deploying decentralized applications (dApps)
- Participating in governance and voting on proposals
- Enabling decentralized finance (DeFi) and NFT use cases
Here are some key features of Solana and SOL ¹ ² ³ ⁴ ⁵:
- Fast transaction times (400ms block times)
- Low fees (<$0.0025)
- High scalability (thousands of transactions per second)
- Energy efficiency (proof-of-stake consensus)
- Decentralized governance and decision-making
- Support for smart contracts and decentralized applications (dApps)
- NFT functionality and marketplaces
