Welcome to Solana

Your Beginner's Guide to Exploring the Blockchain

Table Of Contents
● Introduction
● What is Solana?
● What are SOLs?
● What makes Solana unique?
● How does Solana work?
● Solana Wallet Guide
● DEX and DEFI
● Staking
● NFTs
● Essential Tips for Safe and Smart Engagement
● Expanding Your Knowledge - Resources for Continued Learning

Introduction
Solana is an open source project implementing a high-performance and permissionless
blockchain. The Solana Foundation is based in Geneva, Switzerland and maintains the open
source project.
This article aims to demystify the world of Solana by providing a clear and comprehensive
roadmap to navigating the Solana ecosystem.
This article will cover the important aspects, tools and resources to understand Solana, such as
the following:
● Solana Wallets
● Solana DeFi
● Solana NFts marketplaces
All of the aforementioned and more, to be treated in this article.

What is Solana?
Solana is an open-source blockchain platform created in 2017 by former Qualcomm executive
Anatoly Yakovenko.
The primary objective of Solana is to significantly enhance the scalability of blockchain
technology, exceeding the performance of popular blockchains while keeping costs low.
This is achieved through a hybrid model that allows the Solana network to theoretically process
over 710,000 transactions per second (TPS) without the need for additional scaling solutions.
Solana's blockchain architecture is designed to facilitate the creation of smart contracts and
Decentralized Applications (Dapps). It supports a wide range of Decentralized Finance(DeFi)
platforms and Non-Fungible Token(NFT) marketplaces, making it a versatile solution for various
use cases.

In 2017, Solana debuted via an Initial Coin Offering (ICO), raising over US$25 million through
various private and public sale rounds. Solana became one of the fastest-growing ecosystems
after its debut, attracting several high-profile crypto companies and institutional capital to its
network including Multicoin Capital, CMCC Global, Chainlink, Serum, and more.
What are SOLs?
A SOL is the name of Solana's native token. SOLs serve as a means of transferring value and
securing the blockchain through staking.
Solana may perform micro-payments of fractional SOLs, which are called lamports. They are
named in honor of Solana's biggest technical influence, Leslie Lamport. A lamport has a value of
0.000000001 SOL.
SOL tokens can be purchased on most exchanges and peer-to-peer marketplaces.(more on that
below)

What makes Solana unique?

Solana’s ambitious design aims to solve the blockchain trilemma. The blockchain trilemma
describes a set of three major challenges that developers face when building blockchains:
● Decentralization
● Security
● Scalability
The innovative combination of Proof of Stake(PoS) and Proof of History(PoH) makes Solana a
unique project in the blockchain industry.
Additionally, Solana creates a chain of transactions by hashing the output of one transaction and
using it as the input of the next transaction. This history of transactions-PoH, allows for greater
scalability of the protocol which, in turn, boosts usability.

How does Solana work?

PoH is the core component of the Solana protocol. Essentially, PoH is a sequence of
computations that provides a digital record that confirms that an event has occurred on the
network at any point in time.
PoH can be presented as a cryptographic clock that gives a timestamp to every transaction on
the network, along with a data structure that can be a simple addition of it.
PoH works in tandem with PoS to aid Solana in reaching a consensus, keeping the network
secure, operational and validating transactions.
All nodes on the Solana network must have these cryptographic clocks to keep track of events
rather than waiting for other validators to verify transactions.
Solana Wallet Guide
To interact with the Solana network, you need to have a wallet. Fundamentally, A crypto wallet is
a device or application that stores a collection of keys and can be used to send, receive, and
track ownership of cryptocurrencies.
A keypair is a securely generated secret key and its cryptographically-derived public key. A
secret key and its corresponding public key are together known as a keypair. A wallet contains a
collection of one or more keypairs and provides some means to interact with them.
The public key (commonly shortened to pubkey) is known as the wallet's receiving address or
simply its address. The wallet address may be shared and displayed freely. When another party
is going to send some amount of cryptocurrency to a wallet, they need to know the wallet's
receiving address.

In this case, a Solana wallet can be used to store keys and send, receive, and track ownership of
SOLs. Solana offers several wallet options:
● Web wallets
● Mobile wallets
● Hardware wallets

Web Wallet
These types of wallets are user-friendly and convenient, accessible from any web browser.
Popular options include Phantom and Solflare.

Phantom
Phantom is a digital wallet used to store, send, receive, collect, and swap tokens on the Solana
blockchain. Phantom has a browser extension you can download and use for free from their
website.
Phantom works with all of the major web browsers, like Chrome, Edge, Firefox, and Brave,
Phantom's simple layout and security audits, makes it Solana's premier wallet.
To set up a Phantom web wallet, follow the steps below:
1. Visit https://phantom.app/download and select your browser.
2. Follow the steps in your respective extension store to add the Phantom wallet extension
to your browser. After installing, you should see the Phantom open in a new tab.
3. Select "Create New Wallet" if you are a new user, else, skip to step 7.

4. Create a secure password which you will use to access your new wallet in the future. This
password will only be used for you to more easily secure your Phantom wallet(s) in your
current browser profile.
5. Enter your password and select "Continue"
6. You will be presented with your “Secret Recovery Phrase”. Ensure to store your Secret
Recovery Phrase in a safe and secure location!

7. Click on "I already have a wallet"

8. Enter your Secret Recovery Phrase to restore your wallets.
9. Once you have entered your secret recovery phrase, you will be asked to then create a
new password to access your wallet in the future.
10. Enter a secure password and select "Continue"
11. You've now successfully setup a Phantom wallet.
Solflare
Solflare is one of the first wallets made for the Solana ecosystem, and it was made by Solana
Labs. Solflare works on more platforms than Phantom, and it's just as popular.

To set up a Solflare web wallet, follow the steps below:

1. Visit Solflare.com click Access Wallet.
2. Click I Need A New Wallet, if you are a new user, else, skip to step 6.

3. Write down your Recovery Phrase and store it in a safe location.

4. Click I Saved My Recovery Phrase
 5. Type in each word of your Recovery Phrase and click Continue.

6. Click I Already Have A Wallet

7. Type in each word of your Recovery Phrase and click Continue.
8. You've now successfully setup a Solflare wallet.

Mobile Wallet
To manage your SOLs on the go. Phantom and Solflare provide mobile wallet options.
Click the links below to their official docs to setup your mobile wallets:
● Phantom
○ https://phantom.app/learn/guides/how-to-create-a-new-wallet
● Solflare
○ https://docs.solflare.com/solflare/onboarding/mobile
HardWare Wallet
These wallets are designed to provide top-notch security for your Solana-based crypto assets.
They are the most secure way to store your SOL and other Solana tokens, especially if you plan
to hold a significant amount. They are physical devices and are not constantly connected to the
internet.
How they work:
● Offline storage: Hardware wallets keep your private keys offline and isolated from the
internet. This dramatically reduces the risk of hacking or malware attacks.
● Transaction signing: When you want to send SOL or interact with Solana applications,
you can connect your hardware wallet to your computer or mobile device. The wallet
signs transactions offline with your private key, ensuring your funds remain protected
even if the connected device is compromised.
● Physical buttons and screen: Many hardware wallets include physical buttons and a small
screen. This adds an extra layer of security, requiring you to manually confirm
transactions before they are authorized.
Here are two of the best hardware wallets that offer support for SOLs:
● Ledger
● SafePal

N.B: Before you can set up these wallets, you need to have their physical devices.
Visit the links below to their official documentation to learn how to set up these wallets:
● Ledger
○ https://support.ledger.com/hc/en-us/articles/360016265659-Solana-SOL?docs=t
rue

● SafePal
○ https://safepalsupport.zendesk.com/hc/en-us/articles/360046051752-How-to-S
et-Up-a-S1-Hardware-Wallet

Choose the wallet that aligns best with your security preferences and comfort level. Remember,
never share your secret key with anyone!

DEX and DEFI

Decentralized exchange (DEX) is a peer-to-peer marketplace where transactions occur directly
between crypto traders. DEXs on the Solana platform foster financial transactions that aren’t
officiated by banks, brokers, or any other intermediary.
DeFi is a great way for SOL holders to earn! One of the best things about using DeFi on Solana is
the low transaction fees.

Defi — Decentralized financial services, or decentralized finance, is a general name for

analogues of traditional financial instruments implemented in a decentralized architecture.
These services are publicly available, are open source projects and are most often based on
smart contracts.

Here are some DeFi and DEX platforms on Solana:

● Soldex
● Jupiter Aggregator
● Orca
● Raydium

Soldex

Soldex is a trustless decentralized exchange on Solana. Soldex uses Artificial Intelligence coupled
with Machine Learning to solve some peculiar real-time cross-exchange problems.
It has a lot of customizable bots to enhance the trading experience of its users. These AIs will help
the users to make more well-informed trading decisions. Users can farm, stake, swap, and even
create liquidity pools on Soldex.
Jupiter Aggregator

Jupiter is an onchain exchange of crypto with spot aggregation, dca and perps. It offers the wide
range of tokens and good route discovery between any token pair.

Orca

Utilizing the Solana blockchain, Orca is a decentralized exchange featuring an easy-to-use

interface for novice users. Users can trade their preferred SPL tokens on Orca with almost
instantaneous transaction finality and very little slippage. Orca provides incentive-based trading
pools that give large emissions rewards to liquidity providers. Yield farmers can benefit from
trading fees and generate passive revenue by contributing SOL and stSOL tokens to a liquidity
pool. This protects them against transient losses.
Raydium

Raydium is a Solana-based automated market maker exchange and liquidity provider that
powers the Solana DeFi ecosystem. Raydium shares liquidity with Serum, another Solana DEX,
and has access to its central order book mechanism that mirrors traditional exchanges. This
allows for super-fast, low-fee trading of digital assets on Solana while providing the reliability of
an order book system.

This article is an overview, consequently, for more information on the DEX and DeFi platforms
on Solana, Visit the link below:
● https://solana.com/ecosystem/explore?categories=defi

Staking
Staking is where you lock up your SOL tokens to help secure the Solana network and earn
rewards in return.

How does it work?

● Not all wallets can help you stake SOL. You'll need a staking-enabled wallet, like SolFlare.
Check the official Solana documentation for a complete list of compatible wallets.
● Staking SOL involves transferring them from your regular wallet to a special stake
account. You can create multiple stake accounts, each with its own address, and deposit
any amount of SOL into each one. Each new stake account has a unique address, and a
single wallet can manage or “authorize” many different stake accounts.
● In order to earn staking rewards , the tokens in a stake account must be delegated to a
validator.
 ● In order to earn staking rewards , the tokens in a stake account must be delegated to a
validator. A single stake account can only be delegated to a single validator at any time,
so if you want to delegate to different validators you will need to split your tokens
between multiple stake accounts.

To gain more insight on staking, check out the official docs:

● https://solana.com/docs/economics/staking/stake-accounts

Is it safe?
You retain control of your SOL while it's staked. The validator does not gain ownership.
Staking helps secure the network and earns you rewards.

NFTs
Solana’s low fees make it a perfect fit for NFTs. On the Solana NFT ecosystem , you can find
marketplaces, DAOs, Artist collectives, fractionalization tools, and more.

Solana NFT Marketplaces

Solana NFT Marketplaces help to browse and find our favorite NFT on the Solana Blockchain.
Popular NFT Marketplaces on the Solana blockchain include:
 ● Solanart
● Magic Eden
● Tensor

Solanart
Solanart is a NFT marketplace based on the Solana network. Users can acquire or sell
Solana-based NFTs by connecting with their Sollet Wallet, Sollet Chrome extension or Phantom.

Magic Eden
Users can buy, mint and sell NFTs on the platform. Developers can use Magic Eden's API to
request various endpoints and integrate data into their own programmes. Magic Eden has low
transaction costs and does not charge creators for listing NFTs.
Additionally, Launchpad is a Magic Eden product and service that aims to help creators mint
their collections without any technical know-how.

Tensor
Tensor makes trading NFTs as fun as trading shit coins. We provide advanced trading features
like real-time data (fastest on Solana), full historical candlestick prices, and AMM pools for NFTs.
Sweep, bid, list and delist NFTs in bulk. If you're a power user and want access to the fastest
platform for NFT trading on Solana, check out Tensor.

Essential steps
● Explore marketplaces
● Connect your wallet: Link your Solana wallet to the marketplace.
● Browse and purchase: Find NFTs you like and follow purchase instructions (may involve
auctions or direct buying).

Essential Tips for Safe and Smart Engagement on

the Solana Ecosystem
● Do your research: Before participating in any activity, thoroughly research the project,
platform, and potential risks involved.
● Start small: Begin with smaller investments to gain experience and confidence before
committing larger amounts.
● Diversify: Don't put all your eggs in one basket. Spread your investments across different
activities and platforms.
● Stay updated: The crypto space moves fast. Follow reliable news sources and
communities to stay informed about Solana's development.
Joining the community
Solana has a vibrant community and a wealth of resources available:
● Official Solana website: https://solana.com/ - Provides comprehensive information about
the project, technology, and ecosystem.
● Solana documentation: https://docs.solana.com/ - Offers in-depth guides and tutorials
for developers and users alike.
● Solana blog: https://solana.blog/ - Stay updated on the latest developments and
announcements.
● Solana Collective Discord:https://discord.gg/solanacollective - Connect with other users
and enthusiasts

Staying Updated - Resources for Continued Learning

● Follow reputable news sources: CoinTelegraph, Coindesk, The Block.
● Subscribe to official channels: Solana Twitter, blog, and social media platforms.
● Engage in the community: Participate in discussions and forums to stay informed about
current trends and innovations.

Conclusion
The world of cryptocurrency is ever-evolving, and this guide serves as a starting point.
By utilizing these resources, you can become an informed participant in the Solana ecosystem.
Welcome to the exciting world of Solana! With careful planning, secure practices, and a thirst for
knowledge, you can confidently navigate this innovative blockchain and explore its vast
potential.
Remember, this is just the beginning – the journey of discovery on Solana is yours to embark on.

References
● https://phantom.app/learn/guides/how-to-create-a-new-wallet
● https://solana.com/ecosystem
● https://docs.solflare.com/solflare/onboarding/web-app-and-extension/how-to-create-
a-new-wallet
● https://www.alchemy.com/overviews/solana-wallets
● https://www.alchemy.com/list-of/defi-dapps-on-solana
● https://solana.com/developers/nfts
● https://solanart.io/
● https://magiceden.io/
● https://www.tensor.trade/
● https://solana.com/ecosystem/explore
● https://www.alchemy.com/list-of/nft-marketplaces-on-solana
● https://solana.com/solana-whitepaper.pdf