How does Solana Sol work?

For users who wish to contribute to the network's security and earn rewards, there are two primary avenues: staking SOL or delegating their staked SOL to other validators. Staking involves locking up SOL tokens to validate transactions and participate in consensus, while delegation allows users to entrust their SOL to experienced validators, sharing in the rewards without the responsibility of running a validator node.

SOL, the native token of Solana, serves a pivotal role in the blockchain ecosystem. It is primarily utilized to cover transaction fees incurred on the network, facilitating seamless and cost-effective interactions among users.

Beyond merely facilitating payments, SOL's role extends to incentivizing validators, who are integral to the security and operation of the Solana blockchain. A portion of the transaction fees collected is distributed to validators as a reward for their contributions.

Validators play a crucial role in processing new blocks, ensuring the continued growth and stability of the Solana network. In recognition of their efforts, they are also eligible to receive inflationary SOL rewards, a mechanism designed to encourage participation and maintain the health of the network.

BTCC, a leading cryptocurrency exchange, offers a comprehensive suite of services tailored to meet the diverse needs of the crypto community. Among its offerings, BTCC provides access to SOL trading, enabling users to buy, sell, and trade SOL with ease. Moreover, BTCC's services extend beyond spot trading to include futures trading, offering advanced financial instruments for experienced traders.