Glossary → Solana Glossary
Introduction
This comprehensive glossary covers all the key terms and concepts you’ll encounter while learning about Solana, token creation, DeFi, and blockchain technology. All terms are organized alphabetically for quick reference.
A
Account
A data structure on Solana that stores information. Every token, program, and wallet has an account with a unique address.
Account Owner
The keypair that controls a specific token account and can transfer tokens or delegate spending permissions.
Airdrop
The distribution of free tokens to users, often used to build community or reward early supporters.
AMM (Automated Market Maker)
A type of decentralized exchange that uses mathematical formulas to determine token prices and facilitate trading without traditional order books.
Associated Token Account (ATA)
A specific type of account used to hold SPL tokens. Each token type gets its own ATA, automatically created when needed by your wallet.
B
Base Units
The smallest divisible unit of a token. For a token with 9 decimals, 1 base unit = 0.000000001 tokens.
Basis Points
A unit of measurement equal to 1/100th of 1 percent. 100 basis points = 1%.
Block
A group of transactions that are processed together and added to the blockchain. Solana creates blocks every 400 milliseconds.
Blockchain
A distributed, immutable ledger that records transactions across a network of computers. Solana is a blockchain platform.
Blockchain Explorer
A tool that allows users to view blockchain data, including transactions, accounts, and token information.
C
CLMM (Concentrated Liquidity Market Maker)
A more advanced AMM that allows liquidity providers to focus their liquidity within specific price ranges for higher capital efficiency.
Cluster
A group of Solana validators that work together to maintain the blockchain. Mainnet is the main cluster.
Collection
A group of related NFTs that share common characteristics or belong to the same project.
Consensus
The process by which network participants agree on the state of the blockchain. Solana uses Proof of Stake for consensus.
CPMM (Constant Product Market Maker)
A traditional AMM that distributes liquidity uniformly across all prices using the formula x * y = k.
Creator
The original creator of a token or NFT. Creators can be verified through cryptographic signatures.
Cryptography
The practice of secure communication in the presence of adversaries, used extensively in blockchain technology.
D
Decimals
The number of decimal places a token can be divided into. Most SPL tokens use 9 decimals, meaning 1 token = 1,000,000,000 base units.
Delegate
A temporary permission granted by an account owner to another key, allowing the delegate to spend tokens within a specified allowance.
DEX (Decentralized Exchange)
A cryptocurrency exchange that operates without a central authority, allowing users to trade directly with each other.
Devnet
A testing environment for Solana where developers can test applications without using real SOL or affecting the main network.
E
Epoch
A period of approximately 2 days on Solana where the network recalculates stakes and sets new leader schedules.
External URL
A link to the project’s website or landing page, often included in token metadata.
F
Fair Launch
A token launch where tokens are distributed fairly to the community without preferential treatment for insiders.
Freeze Authority
The key that can freeze or unfreeze token accounts. When an account is frozen, no tokens can be transferred from it.
Fungible Token
A token where each unit is identical and interchangeable. Examples include SOL, USDC, and most SPL tokens.
G
Gas Fees
Transaction fees paid to validators for processing transactions. Solana’s fees are typically less than $0.01 per transaction.
Genesis Block
The first block in the Solana blockchain, marking the beginning of the network.
H
Hash
A mathematical function that converts input data into a fixed-size string of characters, used for security and verification.
I
IDO (Initial DEX Offering)
A fundraising method where tokens are sold directly on a decentralized exchange.
IEO (Initial Exchange Offering)
A fundraising method where tokens are sold through a centralized exchange.
Immutable
A state where certain properties cannot be changed. Metadata can be made immutable by revoking the update authority.
Immutable Token
A token where certain authorities (like mint or freeze) have been permanently revoked, making the token more secure and trustworthy.
Impermanent Loss
The temporary difference in value between holding tokens in a liquidity pool versus simply holding them in your wallet.
K
Keypair
A pair of cryptographic keys consisting of a public key (address) and a private key (used for signing transactions).
L
Leader Schedule
A predetermined order of validators that will create blocks, rotated every epoch.
Launchpad
A platform that helps projects launch their tokens through various fundraising methods.
Liquidity
The availability of tokens for trading. Higher liquidity means easier trading with less price impact.
Liquidity Pool
A collection of tokens that users can trade against. Liquidity providers deposit tokens to earn fees from trades.
LP Token (Liquidity Provider Token)
A token that represents ownership of a liquidity pool position. LP tokens can be traded or used to withdraw the underlying assets.
M
Mainnet
The live, production version of the Solana blockchain where real transactions occur and real SOL has value.
Metadata
Information about a token or NFT, including its name, symbol, description, image, and other attributes.
Metaplex
A widely adopted standard for token and NFT metadata on Solana that ensures consistent display across wallets and marketplaces.
Mint
The “factory” that defines everything about a token, including its supply, decimals, and who can create more tokens.
Mint Authority
The key that can create new tokens by minting them into existence. This authority can be revoked to cap the token’s supply.
Multisig
A wallet that requires multiple approvals for any action, reducing the risk of a single point of failure.
N
Network
The collection of computers (nodes) that work together to maintain the Solana blockchain.
Network Upgrade
A planned improvement to the Solana network that adds new features or fixes issues.
Node
A computer that participates in the Solana network by running the Solana software and helping validate transactions.
Non-Fungible Token (NFT)
A unique, non-interchangeable token that represents ownership of a specific digital asset, such as artwork or collectibles.
P
PDA (Program Derived Address)
An address that is deterministically generated by a program, commonly used for storing program data.
Permanent Delegate
A Token-2022 feature that allows for policy-bound operations on token accounts, configured at the mint level.
Price Impact
The effect a trade has on the price of tokens in a liquidity pool. Larger trades have greater price impact.
Private Key
A secret key that allows users to sign transactions and prove ownership of their accounts.
Proof of History (PoH)
Solana’s unique timestamp system that creates a verifiable order of events, allowing the network to process transactions much faster than other blockchains.
Proof of Stake (PoS)
A consensus mechanism where validators lock up SOL tokens to help secure the network and earn rewards for honest work.
Public Key
A public address that others can use to send tokens or interact with your accounts.
R
Revoke
The process of permanently removing an authority’s power, such as revoking mint authority to cap supply or revoking freeze authority to prevent account freezes.
RPC (Remote Procedure Call)
A way for applications to communicate with the Solana blockchain. RPC nodes provide access to blockchain data and allow users to submit transactions.
RPC Endpoint
A specific URL that provides access to Solana blockchain data and allows users to submit transactions.
Royalties
A percentage of sales that goes to the original creator. Expressed in basis points (500 = 5%).
S
Signature
A cryptographic proof that a transaction was authorized by the owner of the private key.
Slippage
The difference between the expected price of a trade and the actual execution price, often caused by price movement or low liquidity.
Slot
A 400-millisecond window on Solana where a leader can create a block. There are approximately 2 slots per second.
SOL
Solana’s native cryptocurrency used for transaction fees, staking, and governance.
SPL Token
A standard for creating tokens on Solana. SPL stands for Solana Program Library and provides a framework for token creation and management.
Stake
SOL tokens that are locked up by validators to help secure the network and earn rewards.
Staking Rewards
SOL tokens earned by validators for helping secure the network and processing transactions.
Supply
The total number of tokens that exist. This can be fixed (capped) or inflationary (can increase over time).
Swap
The act of exchanging one token for another on a decentralized exchange.
T
Token Account
A specific account that holds a particular type of SPL token. Each token type gets its own account in your wallet.
Token-2022
An enhanced version of the SPL token standard that includes additional features like transfer fees, default account states, and permanent delegates.
Tokenomics
The economic model of a token, including its supply, distribution, utility, and incentive mechanisms.
Transaction
A request to change the state of the blockchain, such as transferring tokens or calling a program.
Transfer Authority
The ability to move tokens from one account to another. This is controlled by the account owner and can be delegated temporarily.
U
Update Authority
The key that can modify a token’s metadata, including its name, symbol, and URI pointer.
URI (Uniform Resource Identifier)
A pointer to off-chain metadata, usually stored on decentralized storage like Arweave or IPFS.
V
Validator
A computer that processes transactions, maintains the blockchain ledger, and votes on new blocks. Validators help secure the network and earn SOL rewards.
Validator Set
The group of validators that are currently active and participating in consensus.
Vesting
A mechanism that locks tokens for a certain period, gradually releasing them to prevent immediate selling.
W
Wallet
Software that allows users to store, send, and receive cryptocurrencies. Wallets also manage private keys and interact with blockchain applications.
Whitelist
A list of addresses that are allowed to participate in a token sale or other exclusive event.