Exploring Solana Terminology: A Beginner’s Guide to Crypto Vocabulary

Understanding some of the key terms will go a long way in helping would-be users navigate the fast and innovative blockchain ecosystem that Solana has become. Below is a glossary that describes clear terms. Many of those ambiguous concepts are for better understanding by developers, traders, and enthusiasts alike.

solana_terminology

Solana’s Terminology

Key Solana Terms You Should Know

# account: A record on Solana’s ledger that may store data or run executable programs. Each account is a building block of activity on the blockchain.

# account owner: The address of the program owning the account – the only one possibly modifying said account.

# app: A front-end application that interfaces with the Solana network, allowing users to interact seamlessly with dApps.

# authority: An account address that is authorized to manage an account. The entity controlling that address may make changes or access certain data.

# block: A set of transactions or entries within the ledger. A sequence of blocks linked together via a hash forms a blockchain.

# blockhash: A unique hash that verifies and tracks the blocks in the Solana ledger, thus ensuring blockchain integrity.

# block height: The number of blocks that come before this block in the blockchain. This provides a way to track the age and sequence of blocks on the chain.

# client: A program that is interacting with the Solana server network cluster to interact with the blockchain.

# commitment: A measure of how confirmed a block or a transaction is, by the number of voters viewed on the block or transaction. Solana uses different varieties to show confirmation status.

# confirmation time: The gap between a tick entry created by a leader and a confirmed block, which shows precisely how much time it would take to finalize a transaction.

# confirmed block: A block that acquires a supermajority of ledger votes, and is considered finalized.

# Cross-Program Invocation (CPI): A call from one on-chain program to another; in essence, it is the method by which different smart contracts can interact with one another.

# entry: In the context of Solana, an entry in a ledger is a message that is either a tick or a record of a transaction. Entries provide the sequential record of processed operations by the blockchain.

# entry ID: A hash of the final entry contents, which acts as a unique identifier of this transaction or tick in the ledger.

# fee account: This is an account to be used for paying to insert the transaction into the ledger. It will also pay for the processing fee of the transaction.

# finality: It’s a point where a transaction cannot be reverted; it gets confirmed if at least 2/3 of the network validators affirm that across all nodes, the ledger is in the most consistent state.

# inflation: The gradual increase in the supply of the token over time used for rewarding validators and further funding development on the network.

# ledger: The list of transactions signed by clients, back to the genesis block, for which the account is responsible.

# ledger vote: The hash of the vote of a validator at some tick height in a ledger.

# message: The formatted input of a transaction. It contains instructions and signatures.

# native token: The token maintains the record of the work of nodes in a cluster. For example, SOL in Solana.

# node: A computer participating in the cluster of the Solana network. It processes transactions and maintains the ledger.

# node count: Total number of active validators in a cluster, describing decentralization and security level.

# on-chain program: This is executable code that represents a set of instructions responsible for reading and modifying accounts to enable Smart Contracts and dApps.

# private key: The private half of a keypair, utilized in signing transactions for secure access to one’s accounts.

# program ID: It is the public key of an account containing a program. It is an identifier through which one can interact with any on-chain program.

# Proof of History (PoH): Native to Solana, it’s a cryptographic mechanism proving data has been recorded in the right order. PoH lets the network be both faster and more efficient.

# prioritization fee: An extra fee a participant pays, giving a transaction greater priority toward higher processing preference within the network.

# public key (Pubkey): The public part of a keypair is used to identify an account and receive transactions.

# sealevel: This is Solana’s proprietary parallel processing engine that enables many smart contracts to execute in parallel. It improves both performance and scalability.

# smart contract: A self-executing program when any real-world condition set is met. It is deployed on the blockchain and interacts with dApps to enable complex transactions between multiple parties automatically, without the interference of an intermediary.

# SOL: The native cryptocurrency of the Solana network to pay transaction fees, stake in validators, or interact with dApps atop the chain.

# Solana Program Library (SPL): Easy-to-use, common token tasks and operations in the Solana ecosystem.

# stake: This refers to the delegation of SOL tokens to the validators to help the network function. Stakers receive rewards while helping in securing the network’s integrity.

# token: Some form of digital asset that is translatable and symbolizes value or some form of rights on the Solana network. Tokens will be used in transactions and maybe something as simple as native coins or as complex as NFTs.

# token mint: It is an account that designates permission for the minting of new tokens on the chain of Solana.

# Transaction Per Second (TPS): The average number of transactions that a blockchain can process within one second. The number is very high compared to most blockchains; thus, Solana has been proven to be a fast scalable network.

# TPU: Transaction processing unit.# transaction: A sequence of compiled instructions that is submitted to the Solana network; to transfer tokens, execute a program, or interact with smart contracts.

# transaction ID: Identifier to track and verify a specific transaction’s execution by being the first signature in a transaction.

# transaction confirmations: The number of blocks that have passed since the block containing this transaction was confirmed. The more confirmations there are, the more sure one can be that the transaction is valid and immutable.

# transactions entry: An entry that bundles several parallel transactions within a slot for more efficiency in its processing.

# TVU: Transaction validation unit.

# validator: A participant in the Solana network processes transactions and secures the blockchain by creating new blocks.

# vote credit: A kind of reward balance given to a validator for having voted on blocks with the view of incentivizing them to keep the consensus in the network.

# wallet: Software or hardware used to store keypairs, manage SOL tokens, and interact with the Solana blockchain.

Conclusion

These keywords will build a very foundational understanding of the Solana blockchain. The more the ecosystem continues to change and grow, the more important it is to know these ideas for informed decisions and full utilization of Solana.