What is solana and Solana Network?
Solana serves as the unit of account on an open-source, decentralised, peer-to-peer computer network (“Solana Network”).Solana employs a hybrid consensus model combining Proof-of-History (“PoH”) with Proof-of-Stake (“PoS”):
Proof-of-History (“PoH”) establishes the chronological order of transactions, creating a historical record and the sequence of events on the blockchain. This system creates a verifiable and secure timestamp for each transaction without the need for additional verification.
The PoH timestamping mechanism automatically organises on-chain transactions by creating a historical record to verify that an event occurred at a specific point in time. To prevent the possibility of double-spending solana, a user must notify the Solana Network of the transaction by broadcasting the transaction data to its network peers. The Solana Network provides confirmation against double-spending by memorialising every transaction in the Solana blockchain, which is publicly accessible and transparent.
Proof-of-Stake (“PoS”) is used for block validation and network security. Participants commonly referred to as “validators” stake solana to participate in block production and transaction verification.
Solana Network uses a PoS mechanism to incentivise solana holders to validate transactions. Unlike proof-of-work, in which miners expend computational resources to compete to validate transactions and are rewarded cryptocurrencies in proportion to the amount of computational resources expended, in PoS Solana Network, validators with higher stakes have a greater chance of being selected as leaders (validators responsible for producing blocks during specific time slots) for each specific slot to validate transactions and be rewarded with staking rewards.
Smart Contracts and DApps: The Solana software source code allows for the creation of decentralised applications (“DApps”), which rely on “smart contracts” based on predefined “if/then” rules to automatically execute on Solana nodes. This mechanism is intended to eliminate the arbitration of a third party for carrying out code execution on behalf of users, making the system decentralised, while empowering developers to create a wide range of applications layering together different smart contracts. Further, smart contracts serve to underpin efforts to decentralise traditional operations in finance (“DeFi”). DeFi offers many opportunities for innovation and has the potential to create an open, transparent and immutable financial infrastructure.
Open-source Protocols and Community Governance: The Solana Network relies on open-source protocols, allowing users to download a “Solana Client” to become a Solana node. Source code modifications are determined by a community consisting of developers, token holders and validators.
Why Invest in solana?
Solana's core strength lies in its "speed + low cost" architecture, which supports high-frequency trading, DeFi, NFTs, gaming, meme coins, and real-world asset (RWA) tokenization across a vibrant ecosystem. In February 2026, solana's monthly stablecoin transaction volume surpassed $650 billion (according to Grayscale Investment 2026 March report), attracting deep institutional adoption. For example, Western Union chose Solana Network to issue its USDPT stablecoin to power cross-border payments, and BlackRock's tokenized fund BUIDL exceeded $550 million in assets under management (AUM) on the network.
Investors can also earn a nominal annual percentage yield (Nominal APY) of approximately 5%–7% by staking solana (depending on inflation rates and validator performance), while continuing to benefit from underlying network upgrades (such as the Alpenglow upgrade, which reduces confirmation times to milliseconds) and the sustained influx of traditional institutional capital.
Holders also benefit from ongoing network upgrades (such as Alpenglow for faster consensus and Firedancer for enhanced throughput) and increasing institutional inflows.
With the launch of spot solana ETFs, traditional investors gain convenient, regulated exposure to solana, offering substantial potential upside for those seeking high-growth opportunities combined with real-world utility in diversified portfolios.
Key Differences Between solana, BTC, and ETH
Bitcoin (BTC) is widely regarded as "digital gold," using Proof-of-Work (PoW) consensus to support only about 7 TPS, with higher transaction fees (often several dollars). Its supply is fixed at 21 million coins, prioritizing security and value storage above all else.
Ethereum (ETH), the pioneer of smart contracts, operates on PoS consensus with base-layer throughput of roughly 15–30 TPS and fees that can fluctuate from $0.05 to $10 or more. It emphasizes programmability and a mature ecosystem.
Solana stands out through its PoH innovation, achieving speeds dozens of times higher than ETH and thousands of times higher than BTC, alongside near-zero fees. Solana's supply follows an inflationary model, with the initial inflation rate is 8% annually, decreasing by 15% year-over-year, reaching a long-term fixed inflation rate of 1.5% annually. This makes it ideal for mass adoption and high-throughput applications, though it has fewer validators and a relatively higher degree of centralization compared to BTC or ETH. In summary, BTC focuses on security, ETH on flexibility, and Solana on performance—the three are complementary rather than direct substitutes.
Important Disclaimer:
Prior to any investment in solana token or related products, please ensure you fully understand the product features and the associated risks. Your intermediary will also conduct an assessment of your investment knowledge before proceeding with any transaction. Please note these products are intended for investors who possess a high risk tolerance, acknowledge the potential for investment losses, seek portfolio diversification, and have the financial capacity to withstand market volatility.
Please note that the above list of risks is not exhaustive, please refer to the Fund’s prospectus for details.