StakePoint

Solana DeFi Glossary

Definitions of key terms used in Solana DeFi, token locking, LP locking, and staking. Published by the StakePoint team.

Glossary/Proof of History (PoH)

Proof of History (PoH)

Solana's cryptographic clock that timestamps transactions before they enter consensus.

Definition

Proof of History (PoH) is a cryptographic technique invented by Solana founder Anatoly Yakovenko. It creates a verifiable sequence of events that serves as a historical record and built-in clock for the Solana network.

PoH works by generating a continuous chain of SHA-256 hash computations where each output is used as the input for the next. Because each computation takes a measurable amount of time, the resulting chain provides a verifiable timestamp for any event inserted into it.

PoH is not a consensus mechanism — it is a pre-processing step that allows Solana validators to agree on the order of transactions before they reach consensus. This dramatically reduces the time validators spend communicating about ordering, enabling Solana's high throughput.

StakePoint & Proof of History (PoH)

Proof of History is one of the reasons Solana can process transactions fast enough for DeFi applications like StakePoint to feel nearly instant. Token locks and staking operations typically confirm within a second.

Frequently Asked Questions

What is Proof of History on Solana?

Proof of History is a cryptographic clock that timestamps transactions before consensus, allowing Solana validators to process them much faster than traditional blockchains.

Is Proof of History the same as Proof of Stake?

No. Proof of History is a pre-processing mechanism for ordering transactions. Solana uses Proof of Stake for validator selection and consensus — PoH and PoS work together.