Solana · Reference
Glossary
Precise definitions for protocols, markets, wallets, and technical Solana concepts.
40 terms · 8 fields
01
Solana Core Concepts
Technical foundations, token standards, and program mechanics.
12 terms
BAM (Block Assembly Marketplace)
Jito's layer for programmable block construction on Solana: transactions are processed in trusted execution environments, the ordering is cryptographically verifiable.
Bundler
A tool or actor that bundles multiple transactions into one block — e.g. to make many wallets buy simultaneously at a token launch.
Compute Unit (CU)
Solana's unit of program execution cost. Every instruction consumes CUs, every block has a CU limit. Priority fees scale with fee-per-CU.
CPI (Cross-Program Invocation)
Mechanism that lets one Solana program call another. The foundation of nearly every DeFi operation — limited to four nested levels.
NonTransferable (Soulbound Token)
Token-2022 extension that fully blocks transfers — the token can only be held, burned, and the account closed. Soulbound on Solana.
P-Token
Anza's Pinocchio-based rewrite of the classic SPL Token program — same program ID, 95 to 98 percent fewer compute units per operation.
Pinocchio
Anza's Rust library for Solana programs — no_std, zero-copy, significantly more compute-efficient than the classic solana-program crate. The basis of P-Token.
Proof of History (PoH)
A cryptographic timing mechanism that gives transactions a verifiable order — Solana's core innovation for high speed.
SIMD (Solana Improvement Document)
Solana's formal proposal process for protocol changes. Analogous to Ethereum's EIPs. Examples: SIMD-0266 P-Token, SIMD-228 inflation, SIMD-0096 stake mechanics.
Token Metadata (Token-2022)
Token-2022 extension that stores name, symbol, URI, and custom fields directly in the mint — no separate Metaplex account needed.
Token-2022
Solana's second token standard with over 20 optional extensions for compliance, UX, and programmable money — the foundation for PYUSD, USDG, and EURC.
Wallet Cluster
A group of wallets that, per on-chain traces, is likely controlled by the same person or group — identifiable through funding and interaction patterns.
02
Token Security and Risk
Extensions, authorities, and forensic patterns for Solana tokens.
9 terms
Confidential Transfer
Token-2022 extension that encrypts token balances and transfer amounts via zero-knowledge proofs — privacy with an optional auditor key for compliance.
Default Account State
Token-2022 extension that creates new token accounts in the frozen state by default. The basis for allowlist stablecoins and KYC gates.
Pausable
Token-2022 extension with a global pause switch — authority can stop all transfers, mints, and burns in one move. Classic TradFi emergency tool.
Permanent Delegate
Token-2022 extension where an authority set by the issuer can transfer or burn any token account at any time. Both compliance tool and rug vector.
Rugpull
A scam pattern where project insiders pull liquidity or funds and leave the project worthless. Common with anonymously launched tokens.
Seed Phrase (Recovery Phrase)
A sequence of usually 12 or 24 words from which all of a wallet's private keys are derived. The ultimate backup — never share it or store it online.
Sybil Attack
An attack where a single party creates many seemingly independent identities or wallets — e.g. to manipulate airdrops or votes.
Transfer Hook
Token-2022 extension that invokes an issuer-defined program on every transfer — for allowlists, KYC checks, royalties. A new reentrancy class on Solana.
Zero-Knowledge Proof
Cryptographic proof that a statement is true without revealing the underlying data — used on Solana for confidential transfers and ZK compression, among others.
03
DeFi Terms
Yield, liquidity, and decentralized finance mechanics on Solana.
6 terms
DeFi (Decentralized Finance)
Decentralized financial services on the blockchain — swapping, lending, borrowing without banks or intermediaries.
Interest-Bearing Mint
Token-2022 extension that stores an interest rate in the mint. The displayed token balance grows via UI multiplier — without changing on-chain supply.
Liquidity Pool
A smart-contract pool of two or more tokens that enables trading on a DEX. Liquidity providers deposit capital and earn a share of the fees.
RWA (Real-World Assets)
Real-world assets (stocks, bonds, gold, real estate) represented as tokens on the blockchain — on Solana e.g. tokenized US stocks via xStocks.
Transfer Fee
Token-2022 extension that withholds a protocol fee in basis points per transfer — taken from the recipient, not the sender. For RWAs and royalty splits.
Wrapped SOL (wSOL)
Token wrapper for native SOL that moves SOL in token form through the SPL Token program. Required for DeFi pools and CPI-based programs.
04
Wallets and Custody
Key management, wallet types, and security patterns.
2 terms
05
Staking
Validator stake, delegations, and reward mechanics.
2 terms
06
NFTs
Token standards, marketplaces, and compressed NFT concepts.
1 terms
07
Trading and Markets
Order book mechanics, DEX patterns, and MEV.
6 terms
Airdrop
The distribution of tokens to many wallets, often as a reward for early usage. Also a common lure for phishing and fake airdrops.
DEX (Decentralized Exchange)
A decentralized exchange where tokens are swapped directly from your own wallet — without a central custodian. On Solana e.g. Jupiter, Raydium, Orca.
Market Cap & FDV
Market cap = price × circulating supply. FDV (fully diluted valuation) = price × total supply including tokens not yet released.
MEV (Maximal Extractable Value)
Value that block producers can extract by inserting, reordering, or omitting transactions — on Solana e.g. via sandwiching; Jito infrastructure structures MEV flows.
Slippage
The difference between the expected and actual execution price of a trade. Caused by price movement and limited liquidity between order and execution.
Wash-Trading
Artificial trading volume created by buying and selling between wallets of the same party to fake activity or liquidity.
08
Blockchain Fundamentals
Cross-chain concepts and general blockchain mechanics.
2 terms