{"id":415515,"date":"2022-03-13T16:00:00","date_gmt":"2022-03-13T13:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/what-is-solana-sol-pay-and-how-does-it-work\/"},"modified":"2022-03-13T16:00:00","modified_gmt":"2022-03-13T13:00:00","slug":"what-is-solana-sol-pay-and-how-does-it-work","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/what-is-solana-sol-pay-and-how-does-it-work\/","title":{"rendered":"# What is Solana (SOL) Pay, and how does it work?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2c0b4a6eac1\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2c0b4a6eac1\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-solana-sol-pay-and-how-does-it-work\/#%E2%80%9D_What_is_Solana_SOL_Pay_and_how_does_it_work_%E2%80%9C\" >&#8221; What is Solana (SOL) Pay, and how does it work? &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-solana-sol-pay-and-how-does-it-work\/#What_is_Solana\" >What is Solana?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-solana-sol-pay-and-how-does-it-work\/#History_of_Solana_Pay\" >History of Solana Pay<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-solana-sol-pay-and-how-does-it-work\/#How_does_Solana_Pay_work\" >How does Solana Pay work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-solana-sol-pay-and-how-does-it-work\/#Advantages_of_Solana_Pay\" >Advantages of Solana Pay<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-solana-sol-pay-and-how-does-it-work\/#Disadvantages_of_Solana_Pay\" >Disadvantages of Solana Pay<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-solana-sol-pay-and-how-does-it-work\/#Solana_Pay_for_merchants\" >Solana Pay for merchants<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-solana-sol-pay-and-how-does-it-work\/#Solana_Pay_for_developers\" >Solana Pay for developers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/buradabiliyorum.com\/en\/what-is-solana-sol-pay-and-how-does-it-work\/#Wallets_that_support_Solana_Pay\" >Wallets that support Solana Pay<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_What_is_Solana_SOL_Pay_and_how_does_it_work_%E2%80%9C\"><\/span>&#8221; What is Solana (SOL) Pay, and how does it work? &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-128018ef>PayPal was a massive innovation in the payments processing industry. The financial brainchild of Peter Thiel, Max Levchin and eventually, Elon Musk aimed far ahead of its time, facilitating instant payments between customers, businesses and more while utilizing the internet.<\/p>\n<p>Solana (SOL) Pay is considered by many to be the next innovation in the payments processing arena, facilitating payments while taking nonfungible tokens (NFTs) and Web3 into account. Some are going so far as to call Solana\u2019s new payment protocol the Visa or PayPal of Web3. This post will break down Solana Pay and how it works so you can decide whether the project is all it\u2019s cracked up to be.<\/p>\n<p>But first, it\u2019s vital to understand Solana before getting into the digital payment platform Solana Pay.<\/p>\n<p><strong><em>Related: What is Web3: A beginner&#8217;s guide to the decentralized internet of the future<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_Solana\"><\/span>What is Solana?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Solana was founded in 2017 by Anatoly Yakovenko, a software engineer with a background at Dropbox and other big tech companies. <\/p>\n<p>Yakovenko believed that while other blockchains are efficient or at least working toward efficiency, many of them fail to factor in time. Instead of every block relying on a standardized clock, each block runs on the local time of their relevant node. <\/p>\n<p>Why is this a problem? Without a standardized clock, transaction timestamps will vary for each block and the time of confirmation is yet another factor that all nodes must validate. The more factors a node has to validate, the slower the transaction time.<\/p>\n<p>On Solana, all nodes run on the same clock, removing one validation factor and speeding up the network as a result. Yakovenko refers to this consensus method as proof-of-history (PoH) \u2014 a modified version of proof-of-stake (PoS) that factors in time for verification purposes. <\/p>\n<p>Validation works similar to proof-of-stake in Solana\u2019s case. Solana is just using time as a historical record of proof on top of the proof-of-stake method. As a result, Solana can process an average of 65,000 transactions per second with minimal fees. <\/p>\n<p>Solana is also a smart contract decentralized finance (DeFi) platform competing with Ethereum (ETH). Both platforms offer all sorts of decentralized finance D<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">App<\/a>s, some with their cryptocurrencies as well. Instead of Ether at the center of it all, the Solana token is SOL.<\/p>\n<p>SOL is used to transact within the Solana network, to stake for governance purposes and is given as a reward to validators. Otherwise, Solana has its own decentralized exchanges to trade the various tokens built on top of its platform. Every DApp built on Solana is sure to have its own SOL-compatible token, and on-chain decentralized exchanges provide an accessible way to buy said tokens <\/p>\n<p>Now, because Solana\u2019s PoH consensus allows it to process tens of thousands of transactions per second without fees, Solana Labs is building Solana Pay to provide that transaction power to the masses.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"History_of_Solana_Pay\"><\/span>History of Solana Pay<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While Solana Labs were a big part of the Solana Pay development process, other companies were involved as well. According to Shere, Circle, Checkout.com, Citcon, Phantom, FTX and Slope all played a part in establishing the foundation for the digital payment platform Solana Pay. <\/p>\n<p>Team Circle <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.circle.com\/blog\/solana-pay\">states<\/a> that \u201c73% of businesses believe accepting digital payments is fundamental to growth in 2022,\u201d according to a study by Visa. That same study revealed that 59% of those businesses \u201calready are, or plan to, use only digital payments within the next two years.\u201d These statistics were part of the foundation for Solana Pay, as Solana Labs, Circle and their other partners want to be ready for these early adopters. Shere joined Solare Labs in 2021 to work on Solana Pay.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_does_Solana_Pay_work\"><\/span>How does Solana Pay work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Digital payment platform Solana Pay offers businesses and customers im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te, fee-free transactions that allegedly have zero effect on the environment by harnessing the power of the Solana blockchain network. The network claims to support 65,000 transactions per second and provides an easy-to-implement software development kit for businesses to integrate the product.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-03\/e24cd6b7-2500-40af-8f30-0e20ed221156.png\"><\/figure>\n<p>Developers building DApps on Solana can integrate Solana Pay for easy transactions, just as traditional retailers can implement it if they have a Solana wallet. That accessibility is why many compare Solana to PayPal, stating that Solana can do for crypto payments what PayPal did for traditional online payments.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-03\/561a754c-8fba-4371-8be1-2cf45073c87b.png\"><\/figure>\n<p><strong><em>Related: <\/em><\/strong><strong><em>What is Solana (SOL) and How Does it Work?<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Advantages_of_Solana_Pay\"><\/span>Advantages of Solana Pay<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Of course, Bitcoin (BTC), ETH and other cryptocurrencies claim to provide a near-instant crypto payment, but these networks (especially Ethereum) are costly and not as instant as they might claim. For instance, Bitcoin features an average of seven transactions per second, while Ethereum averages thirteen transactions per second. Both Bitcoin and Ethereum are harmful to the environment as well. Solana\u2019s network is faster and cheaper, which is attractive to businesses and customers. <\/p>\n<p>Solana Pay allows its users to pay in real-time in SOL or any other supported Solana token, such as real-time payments in USD Coin (USDC), without involving a third-party such as a bank or payments processor. Moreover, Solana Pay doesn\u2019t allow for chargebacks, removing a costly issue that traditional merchants often face. <\/p>\n<p>Also ideal for merchants, Solana Pay offers detailed reports on every transaction such as wallet destination, currency type, the transaction amount and text fields for the merchant to describe the said transaction. These details are kept entirely private from the rest of the network, ensuring that both the customer and the merchant can transact without prying eyes.<\/p>\n<p>As the head of payments at Solana Labs, Sheraz Shere, states in his blog post <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/solana.com\/news\/solana-pay-announcement\">announcing<\/a> Solana Pay, the Solana team wants the world to look at Solana Pay as something bigger than allowing users to \u201cpay with crypto.\u201d Instead, Shere views Solana Pay as a platform where \u201call currencies are on-chain and used for a wide range of transactions,\u201d he says.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Disadvantages_of_Solana_Pay\"><\/span>Disadvantages of Solana Pay<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Solana Pay, alongside the Solana network, itself, is in an early stage of development. Businesses who switch over to Solana Pay run the risk of losing their assets due to a programming error or attack on the network, for instance. It\u2019s possible to lose assets due to basic user errors if the business isn\u2019t crypto-knowledgeable, as managing a crypto wallet doesn\u2019t come naturally to everyone.<\/p>\n<p>Also, while Solana is faster than many of its competitors, Ethereum is still a much bigger platform overall. Ethereum has many more DApps and a larger user base than Solana, and Ethereum\u2019s eventual move to Ethereum 2.0 could prove problematic for Solana as well.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Solana_Pay_for_merchants\"><\/span>Solana Pay for merchants<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While Solana Pay might sound complex, integration for merchants is pretty simple. To start, a merchant must establish a Solana wallet, which they can do individually or through the FTX exchange. <\/p>\n<p>From there, the merchant must <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/docs.solanapay.com\/core\/merchant-integration\">implement<\/a> some Solana Pay code into their website and encode their subsequent crypto payment request link into a QR code. Now, customers can pay for goods and services both digitally and in person by simply scanning a QR code within their SOL-supported wallet. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Solana_Pay_for_developers\"><\/span>Solana Pay for developers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While Solana Pay has its base use case in offering merchants a way to accept crypto easily, the Solana community can propose changes and present new use cases. Solana Pay\u2019s documentation <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/solana.com\/news\/solana-pay-announcement\">invites<\/a> users to open up a Github issue if they want to propose changes and updates. <\/p>\n<p>In his blog post regarding Solana Pay, Shere notes that Solana Pay could facilitate physical and digital transactions via NFTs. His example revolves around buying a pair of shoes. A customer might buy a pair of shoes using Solana Pay, and walk out of the store with two NFTs. <\/p>\n<p>The first NFT allows her to use those shoes in the metaverse, and the second is a receipt for her purchase. That receipt doubles as entry into the retailer\u2019s exclusive club of NFT holders that receive discounts and other bonuses from the retailer.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Wallets_that_support_Solana_Pay\"><\/span>Wallets that support Solana Pay<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Solana Pay is currently supported in three wallets: Phantom, Crypto Please and FTX. Phantom is a Solana-only wallet for <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/phantom.app\/\">buying<\/a>, holding, and swapping crypto and NFTs. Crypto Please is another Solana-focused wallet enabling users to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoplease.com\/\">send<\/a> crypto over Telegram, Whatsapp and more. Finally, FTX is an exchange that <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/ftx.us\/wallet\">supports<\/a> all types of cryptocurrencies including Solana. More wallets that support Solana Pay are coming soon.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/what-is-solana-sol-pay-and-how-does-it-work\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; What is Solana (SOL) Pay, and how does it work? &#8220; PayPal was a massive innovation in the payments processing industry. The financial brainchild of Peter Thiel, Max Levchin and eventually, Elon Musk aimed far ahead of its time, facilitating instant payments between customers, businesses and more while utilizing the internet. Solana (SOL) Pay&#8230;<\/p>\n","protected":false},"author":1,"featured_media":415516,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDMvOTM4YjgwM2UtMGM5ZC00ZTgzLWJhNjItNDI4NzY2MzE1Mjk1LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,74863,74868,75554,74891,76556,110520,74889,92498,74892,74355,4965],"class_list":["post-415515","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-cryptocurrencies","tag-defi","tag-dlt","tag-ethereum","tag-fintech","tag-how-to-crypto","tag-payments","tag-solana","tag-tokens","tag-adoption","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/415515","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=415515"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/415515\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/415516"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=415515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=415515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=415515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}