The Solana blockchain utilizes a Proof of Stake (PoS) consensus mechanism, operating similarly to other Layer 1 blockchains such as Ethereum. Solana also leverages a Proof of History (PoH) algorithm, a key innovation that solves one of the most challenging problems in distributed ledger systems: the consensus of event timestamping. The competitive advantage of this blockchain benefits all parties operating on Solana’s network with lower transaction costs and heightened security.
Digital Investing: How digital assets work and ways investors can gain exposure to them
November 21, 2021