- Solana is a blockchain platform designed for decentralized applications and crypto projects.
- The network distinguishes itself with a combination of Proof of History (PoH) and Proof of Stake (PoS) consensus mechanisms.
Solana, founded in 2020 by Anatoly Yakovenko, stands out as a high-performance blockchain designed for decentralized applications (DApps) and crypto projects.
What is Solana (SOL)?
Solana is a high-performance blockchain platform designed for decentralized applications (DApps) and crypto projects. The project was founded by Anatoly Yakovenko in 2020.
It aims to provide fast and cost-effective transactions by using a unique consensus mechanism called Proof of History (PoH) in combination with Proof of Stake (PoS). High throughput, low transaction cost, smart contracts, and ecosystem and projects are some key features.
SOL is the native cryptocurrency of the Solana blockchain. It is used for various purposes within the Solana ecosystem, including transaction fees, staking, and participation in the network’s governance.
Network Design
The system design involves a Leader node generating a PoH sequence for global read consistency. The Leader efficiently sequences user messages, executes transactions, and publishes them with a state signature to Verifiers.
Source: Solana Whitepaper
Verifiers independently execute transactions, and publish state signatures as confirmations, serving as votes for consensus. In a non-partitioned state, one Leader exists, and Verifiers, with PoS-based elections, can become Leaders.
The design prioritizes Consistency over Availability in the CAP theorem, proposing a recovery mechanism for network control in case of partition.
System Architecture
The system architecture of the Solana blockchain was constructed using five main components which are as follows:
Components: The Leader, an elected Proof of History generator, processes user transactions, generating a unique global order. It outputs a Proof of History sequence and signs the resulting state. The validator and verifier are other significant components.
Network Limits: The Leader efficiently sequences incoming user packets, forming a Proof of History sequence. On a 1gbps network, the maximum possible transactions are 710k tps, considering Ethernet framing loss.
Computational Limits: Transaction throughput is limited by available system cores. GPU-based ECDSA verification servers show experimental results of 900k operations per second.
Memory Limits: Naive state implementation theoretically accommodates 10 billion accounts in 640GB. Steady-state random access measures 2.75m transactions per second.
High-Performance Smart Contracts: Smart contracts use Berkeley Packet Filter bytecode, enabling a zero-cost Foreign Function Interface. Batching intrinsic calls, such as ECDSA verification, on the GPU significantly increases throughput.
Consensus mechanism
Proof-of-History: Proof of History (PoH) is a cryptographic technique designed to provide a verifiable and secure sequence that represents the passage of time between events in a system. It serves as a mechanism for creating a timestamped, immutable record of events within a decentralized network or blockchain.
The mechanism utilizes a secure function, executed sequentially on a single core, ensuring unpredictable output. Starting from a random value, it runs a hash function, and records outputs and call count.
The mechanism generates 4000 hashes per second with minimal data overhead and in combination with Proof of Replication, it defends both space and time against forged ledgers.
Proof of Stake Consensus: Proof of Stake (PoS) is a consensus algorithm used in blockchain networks to achieve agreement on the state of the blockchain.
Unlike traditional Proof of Work (PoW) algorithms, where participants (miners) compete to solve complex mathematical problems to validate transactions and create new blocks, PoS relies on validators who are chosen to create new blocks and validate transactions based on the amount of cryptocurrency they hold and are willing to “stake” as collateral.
The process involves bonding transactions, voting through signatures, unbonding for stale votes, and elections triggered by generator failure, runtime exceptions, or network timeouts.
To avoid the “tragedy of commons,” the PoH generator injects occasional invalid hashes. Collusion with the generator or censorship can be countered dynamically, and the protocol defends against long-range attacks.
Streaming Proof of Replication: Proof of Replication (PoRep) is a concept in blockchain and distributed ledger systems that aims to ensure data integrity and security by verifying that a participant in the network has dedicated resources to store a specific piece of data.
The data set is fully encrypted, and proofs are generated by selecting random slices from each block using a key-seeded pseudorandom number generator.
Verification occurs efficiently, and key rotation ensures uniqueness tied to Proof of History sequences. The system defends against spam, partial erasure, collusion, denial of service, and the tragedy of commons.
Conclusion
Solana’s innovative approach to blockchain transactions, combining PoH and PoS, positions it as a game-changer in the decentralized space. With high throughput, low costs, and smart contract support, Solana addresses key challenges in the blockchain ecosystem.
