Solana is a blockchain platform that supports decentralized applications and cryptocurrencies, including its own SOL coin. Like all altcoins, Solana was created to increase scalability and speed of transactions and has been very successful in doing so. In this article, we’ll take a closer look at how Solana transactions work and tell you what you need to pay attention to in order to make your cryptocurrency transfers efficient.
Elements of Solana transactions
A Solana transaction is the transfer of SOL coins from one wallet to another. To better understand this process, it is important to know the basic elements that form it. They include all the same components as other cryptocurrencies, but they also have unique ones. Here’s a description of them:
- Signatures. This is a cryptographic confirmation that the transaction was executed by the legitimate owner of the coins. In other words, signatures authorize the transaction;
- Accounts. This is a system that assumes that various accounts store coin data. They are divided into payer account (the one who pays the fee), source account (from which assets are transferred), receiver account (the one who receives the assets), and program accounts (the smart contracts that are interacted with);
- Instructions. This element refers to the tasks that will be performed during the transaction. In other words, these are actions directed to Solana network programs, or smart contracts;
- Message. It contains signatures, accounts, and instructions. In general, it is all the data needed to execute a SOL transaction;
- Program ID. This component indicates which smart contract the transaction is interacting with;
- Hash. This is a reference or identification number of the transaction that allows you to track its status. Using the hash, you can find out if it has been validated in the blockchain or is in processing;
- Fee. This component refers to the cost of performing a transfer on the network, which is paid in SOL’s own coin.
Solana transaction process
Now let’s take a look at how the transaction lifecycle happens in Solana:
- Stage 1: Creation. In this stage, the user decides to send Solana coins and fills in all the necessary fields in the crypto wallet: coin, amount, blockchain, crypto wallet address, accounts and instructions.
- Stage 2: Signing. The cryptocurrency owner authorizes the transaction using private keys. This usually happens automatically after the user clicks “Confirm Send”.
- Step 3: Sending to the network. Once signed, the transaction is sent to the Solana network via the wallet, dApp, or directly through the node.
- Stage 4: Validation. The transaction is checked by blockchain validators for authenticity. This stage primarily checks the signature and the account balance, which should be sufficient to cover commissions.
- Step 5: Distribution to the network. After the first verification, the transaction is sent to other validators for verification. Solana uses a Proof-of-History (PoH) mechanism to conveniently organize the validation process, which ensures data order and high dispatch speed.
- Stage 6: Execution. The transaction instructions are executed by smart contracts. If necessary, changes are made at this stage, such as updating the account balance.
- Stage 7: Confirmation. When the transaction is completed, it is included in the blockchain. Validators then complete the processing, making the transaction irreversible.
When all these steps are completed, the transaction is considered successful. And for a Solana transaction to be effective, you need to know a lot more about its aspects, especially the fees.
Solana transaction fees
Commissions on the Solana network, like on other blockchains, are based on a rewards system: the validators who check transactions receive them as payment for their work. But unlike many other networks, Solana’s fees are extremely low.
For example, SOL transfers are charged an average fee of 0.000005 SOL, which is less than a cent. Of course, this amount can vary, but only slightly. This is another advantage of Solana commissions: they remain low even during periods of high network congestion. This effect is due to the high scalability of the network, making SOL transactions a popular choice for high-frequency trading, DeFi and decentralized applications (dApps).
How long does a Solana transfer take?
Solana has another advantage over other blockchains – it has a high transfer speed. Solana takes 0.4-0.5 seconds to confirm a transaction, and up to 65,000 transactions can be processed simultaneously every second. This speed is due to a combination of Proof-of-Stake (PoS) and Proof-of-History (PoH) mechanisms, both of which increase the speed of transaction processing on the network.
Like fees, SOL’s transaction processing speed is generally stable. However, it can vary depending on a number of factors.
Solana transactions are most often chosen for frequent trading because of their high speed and low cost. This is the main advantage of this blockchain network compared to others. However, delays are also possible due to the state of the network and the peculiarities of a particular transaction, so try to choose the least busy time to make transfers and double check the correctness of the entered data.
We hope that this guide was useful to you and now you know everything about Solana transactions. If you still have any questions, feel free to ask them in the comments!
