Solana Glossary

Essential terms and definitions for understanding Solana blockchain, token accounts, and rent fees

Accounts

Associated Token Account (ATA)

A deterministic token account address derived from a wallet's public key and a token mint. ATAs simplify token transfers by providing a predictable account address for each token type.

Token Account

An account that holds a specific SPL token balance for a wallet. Each token type requires a separate token account, and each account requires a rent deposit.

Authority

The account that has permission to perform certain operations on another account. For example, mint authority can create new tokens.

Blockchain

Program

Solana's term for a smart contract. Programs are executable code deployed on the blockchain that can be called by transactions to perform operations.

Signature

A unique identifier (hash) for a Solana transaction. Can be used to look up transaction details on block explorers like Solscan.

Currency

Lamports

The smallest unit of SOL. 1 SOL = 1 billion lamports. Similar to satoshis in Bitcoin. Used for precise calculations in smart contracts and transactions.

DeFi

DEX (Decentralized Exchange)

A cryptocurrency exchange that operates without a central authority. Solana DEXs like Jupiter, Raydium, and Orca allow peer-to-peer token trading.

DeFi (Decentralized Finance)

Financial services built on blockchain technology without traditional intermediaries. Includes lending, trading, and yield farming on Solana.

Fees

Rent

A fee required to store data on the Solana blockchain. Accounts must maintain a minimum SOL balance to be rent-exempt. For token accounts, this is approximately 0.002 SOL.

Rent-Exempt

An account status achieved when an account holds enough SOL to cover approximately 2 years of rent. Rent-exempt accounts never pay rent and the deposit can be reclaimed when the account is closed.

Infrastructure

RPC Endpoint

Remote Procedure Call endpoint. The API server that allows applications to interact with the Solana blockchain. Can be public (rate-limited) or private (paid, faster).

Block Explorer

A website that allows you to search and view blockchain data. Popular Solana explorers include Solscan, Solana Explorer, and SolanaFM.

Networks

Devnet

Solana's development network used for testing. Uses worthless test SOL and allows developers to experiment without financial risk.

Mainnet

Solana's production blockchain where real SOL and tokens have monetary value. All official transactions occur on mainnet.

Operations

Close Account

The process of permanently removing a token account from the blockchain and reclaiming its rent deposit. Only possible for accounts with zero balance.

Transaction

An atomic operation on Solana that can include multiple instructions. Either all instructions succeed or the entire transaction fails and rolls back.

Instruction

A single operation within a transaction. Instructions call specific program functions with provided accounts and data.

Airdrop

The free distribution of tokens to multiple wallets, often used for marketing or rewarding community members.

Token Extensions

Transfer Fee Extension

A Token-2022 feature that allows tokens to charge a fee on every transfer. The fee can be a percentage or fixed amount.

Confidential Transfer

A Token-2022 extension that encrypts token balances and transfer amounts using zero-knowledge proofs, providing privacy.

Withheld Fees

Transfer fees collected in Token-2022 accounts that haven't been harvested yet. Must be harvested before closing the account.

Tokens

SPL Token

Solana Program Library Token standard. The original token standard on Solana, similar to ERC-20 on Ethereum. Used by most tokens and NFTs on the network.

Token-2022 (Token Extensions)

The next-generation token standard on Solana with additional features like transfer fees, confidential transfers, and interest-bearing tokens. Backwards compatible with SPL Token.

Token Mint

The unique address that identifies a specific token on Solana. Every SPL token has one mint address that defines its properties (decimals, supply, mint authority, etc).

NFT (Non-Fungible Token)

A unique token that represents ownership of a specific digital asset. On Solana, NFTs are SPL tokens with a supply of 1 and 0 decimals.

Wallets

Solana Wallet Adapter

A standard interface that allows dApps to connect with multiple Solana wallets (Phantom, Solflare, Backpack, etc) using a unified API.

Phantom Wallet

One of the most popular Solana wallets. A browser extension and mobile app that allows users to store SOL, send transactions, and interact with dApps.

Public Key

A cryptographic address that identifies an account on Solana. Can be shared publicly to receive SOL or tokens.

Private Key

The secret key that proves ownership of a wallet. Must never be shared. Used to sign transactions.

Seed Phrase (Recovery Phrase)

A 12 or 24-word phrase that can restore access to your wallet. Must be kept secure and never shared with anyone.

Learn More

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