Solana is a high-performance blockchain that uses an innovative consensus mechanism combining Proof of Stake and Proof of History. This unique approach allows Solana to process thousands of transactions per second while maintaining security and decentralization. The key components include Proof of History for timestamping, Proof of Stake for validation, and the Tower BFT algorithm for consensus.
Proof of History is Solana's breakthrough innovation that acts as a cryptographic clock. It creates a verifiable sequence of events by generating cryptographic hashes that prove when each event occurred. This eliminates the need for nodes to communicate extensively about timing, reduces network overhead, and enables parallel transaction processing. The PoH clock provides a historical record that all validators can trust without requiring complex synchronization protocols.