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Whether you’re new to the crypto space or curious about all the hype, you might be asking yourself, “What is Solana?”
This blockchain has stirred up quite a bit of buzz in the last few years.
But what’s hype, and what’s fact? That’s what we’ll cover today. Read on to learn more about Solana, what makes it tick, and how to get your hands on your first few coins.
So, what is Solana?
Much like other cryptocurrencies, Solana is a network that leverages blockchain technology to facilitate transactions. Solana is a bit different from other popular blockchain networks like Bitcoin and Ethereum for two reasons: speed and cost.
Solana uses a combination of a few innovations to make its network faster. One key technology is something called Proof of History (PoH).
PoH acts like a digital clock that timestamps transactions, allowing them to process faster.
Because of this, Solana can handle thousands of transactions per second (TPS), making it one of the fastest blockchains around.
Additionally, PoH keeps fees low.
Whether you’re an everyday user or developer building a project, you don’t have to worry about high costs when sending and receiving crypto. This also means that smart contract execution (programmable transactions) are also cheaper.
To give you an idea of how much cheaper it is, let’s compare some average transaction costs:
Why does Solana’s fast network matter?
Well, while other networks become congested with too many transactions, Solana can process more than 1,000 TPS* (as mentioned on chainspect.app). This makes it a great choice for applications that need fast and reliable processing, like real-time trading, decentralized apps (dApps), and gaming.
This also means transactions on the network are almost instantaneous. In most cases, transactions settle in seconds, not minutes or hours.
Those low fees are also a standout benefit.
While a few cents here is not an issue for most everyday users, for use cases to scale, these low fees really make a difference. For example, if you wanted to use non-fungible tokens (NFTs) for a ticketed sporting event, using another blockchain network like Ethereum would be cost-prohibitive.
With Solana, these types of at-scale use cases are possible.
Moreover, Solana is built to handle more users without slowing performance. As the number of transactions increases, Solana’s architecture allows it to keep up with demand by increasing its throughput without compromising speed or security.
While this all sounds great, this performance comes at a cost.
First of all, Solana is known for network outages. This typically happens when the network is overloaded or when certain transactions or activities cause a disruption.
Solana has faced notable outages, such as the September 2021 outage* (learn more at helius.dev), which lasted over 17 hours. These incidents have raised concerns about the network’s ability to handle high demand reliably over time.
Additionally, Solana has faced some criticism about the true nature of the network’s decentralization.
The argument is that the costs to participate in processing transactions for the network are higher than those of other blockchains. These high costs go against the principles of decentralization, putting power in the hands of a few well-funded entities.
Another fact that can’t be ignored is that Solana's speed and efficiency are no longer unique.
Many other blockchain networks, such as Avalanche, Binance Smart Chain, and even Ethereum (through recent network upgrades), can now compete in terms of costs and TPS.
Criticisms aside, there’s no denying the flurry of activity on the Solana network.
When people ask, “What is Solana?” The first answer is usually a place for decentralized finance (DeFi).
The network supports all kinds of DeFi activity:
Lower fees and faster transactions are particularly important for DeFi. Users want to minimize costs and time delays when swapping tokens or executing complex financial transactions.
There’s also Solana’s thriving NFT and digital collectible ecosystem.
It’s attracted major NFT marketplaces and innovative protocols pushing the boundaries of what a digital asset can accomplish.
Solana also has a growing gaming ecosystem. This goes beyond simple tokenized gaming mechanics of the past, like play-to-earn, where you earn coins for in-game activities. Due to its speed and low costs, there are games that exist solely on-chain, meaning they are playable on the blockchain itself.
Additionally, there are emerging sectors that have made a home on Solana, like real-world assets (RWAs), putting everything from real estate to commodities like gold on-chain.
Solana has seen some significant headwinds in its past. Even so, it continues to grow.
As of 2025, the ecosystem is expanding, attracting developers to build on the blockchain. The team behind Solana itself is also doing a lot of work on onboarding new users.
From community events like developer hackathons that fast-track new projects to consumer devices like Solana’s Saga phone, a crypto-first smartphone, it seems as if the team has its eyes set on being the consumer chain of the future.
But, with competition heating up, we’ll see how well they can maintain their lead in terms of speed, scalability, and ecosystem development.
So, what is Solana?
Well, it’s more than just another blockchain project; it’s a thriving ecosystem of developers and users alike, pushing the boundaries of what this type of technology can accomplish.
Of course, no story is complete without setbacks — and Solana has seen quite a few.
Even so, the network continues to grow, safely holding down a top ten spot in the blockchain leaderboards.
Want to get your hands on some Solana?
Bitcoin Depot’s online buying service has you covered. There, you can purchase all types of cryptocurrencies, like Solana, using a debit card, credit card, Apple Pay, or Google Pay.
It all happens in just a few clicks; no account needed.
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