Blockchain is a decentralized, distributed ledger technology that records transactions across many computers. Key features:

• Decentralization: No central authority controls the network
• Immutability: Once recorded, data cannot be altered
• Transparency: All transactions are publicly visible
• Security: Cryptographic techniques protect the network

Solana is a high-performance blockchain that stands out because of:

• Proof of History (PoH): A cryptographic clock that timestamps transactions
• High Throughput: 50,000+ transactions per second (TPS)
• Low Fees: Average transaction cost of $0.00025
• Fast Finality: 400ms block times

// Solana's key innovations:
- Tower BFT (consensus mechanism)
- Gulf Stream (mempool-less transaction forwarding)
- Sealevel (parallel smart contracts)
- Pipelining (transaction processing optimization)

SOL is Solana’s native cryptocurrency with several key functions:

• Transaction Fees: Paid in SOL to process transactions
• Staking: Secure the network and earn rewards
• Governance: Vote on network upgrades
• Store of Value: Digital asset with market value

Key economic metrics:

• Total Supply: ~511 million SOL (as of 2023)
• Inflation Rate: Starts at 8%, decreases by 15% annually until 1.5%
• Staking Rewards: ~7% APY (varies by network participation)

Phantom is a non-custodial wallet designed for Solana with these key features:

• Browser extension (Chrome, Firefox, Brave, Edge)
• Mobile app (iOS & Android)
• Built-in token swaps
• NFT management
• DApp browser

Installation steps:

1. Visit the official Phantom website (phantom.app)
2. Download for your browser or mobile device
3. Create a new wallet (write down seed phrase!)
4. Set a strong password
5. Fund your wallet with SOL

Essential security measures for Phantom Wallet:

• Seed Phrase: Write it down on paper (never digital) and store securely
• Password: Use a strong, unique password for the wallet
• 2FA: Enable two-factor authentication on connected accounts
• Hardware Wallet: Connect Ledger for additional security
• Blind Signing: Disable unless absolutely needed

Common scams to avoid:

• Fake support agents (Phantom will NEVER DM you first)
• Malicious airdrops (don’t interact with unexpected tokens)
• Phishing websites (always check URLs carefully)
• Fake wallet updates (only update through official channels)

Phantom allows you to manage various Solana assets:

• SOL: Native cryptocurrency for transactions
• SPL Tokens: Solana’s equivalent of ERC-20 tokens
• NFTs: Digital collectibles and assets
• Staked SOL: Delegated to validators

Key wallet operations:

1. Receiving Funds:
- Share your public address (starts with "Sol...")
- QR code available for mobile

2. Sending Funds:
- Enter recipient address (double-check!)
- Set amount and confirm

3. Swapping Tokens:
- Built-in swap interface
- Connects to Raydium or Jupiter aggregator

4. Managing NFTs:
- View your collection
- Send/receive NFTs

Solana transactions have unique characteristics:

• Fee Structure: Fixed base fee + priority fee (optional)
• Transaction Size: Max 1232 bytes
• Signatures: Required for all transactions
• Finality: Typically under 1 second

Transaction lifecycle:

1. Created and signed by sender
2. Broadcast to the network
3. Included in a block by leader
4. Confirmed by 2/3+ of validators
5. Marked as finalized

During network congestion, Solana implements a fee market:

• Base Fee: 0.000005 SOL (5000 lamports)
• Priority Fee: Optional additional fee to prioritize your transaction
• Compute Units: Each transaction consumes compute budget

When to use priority fees:

• Trading during high volatility
• Minting popular NFTs
• Time-sensitive transactions
• When transactions are failing

Common transaction failure reasons:

• Insufficient SOL: Need SOL for gas fees
• Network Congestion: Try again with higher priority fee
• Invalid Address: Double-check recipient
• Token Account Not Initialized: Some tokens require initialization
• RPC Issues: Try switching RPC endpoint

Troubleshooting steps:

1. Check Solana status page (status.solana.com)
2. Verify you have enough SOL
3. Try increasing priority fee
4. Wait a few minutes and retry
5. Check transaction on Solana Explorer
6. Restart Phantom wallet
7. Switch RPC endpoint (Settings → Network)

Staking SOL helps secure the network and earns rewards:

• Delegated Proof-of-Stake: SOL holders delegate to validators
• Rewards: Currently ~7% APY (varies by epoch)
• Unstaking Period: 2-3 days to withdraw staked SOL
• No Slashing: Unlike Ethereum, no penalty for validator misbehavior

How staking works in Phantom:

1. Navigate to the “Stake” tab
2. Choose a validator (research first!)
3. Enter amount to stake
4. Confirm transaction
5. Monitor rewards in “Stake” tab

Selecting good validators is crucial for network health:

• Commission Rate: % validator takes from rewards (5-10% is typical)
• Uptime: Should be 99%+
• Decentralization: Avoid over-concentration in single validator
• Reputation: Research validator’s history and community standing

Tools for validator research:

• Solana Beach (solanabeach.io)
• Validators.app
• Stakeview.app
• Solana Compass

Advanced staking operations in Phantom:

• Deactivate Stake: Begin unstaking process
• Withdraw Stake: After deactivation period
• Split Stake: Divide stake across multiple validators
• Merge Stake: Combine stakes to same validator

Staking tax considerations:

• Rewards are taxable income when received
• Keep records of all staking activity
• Consult a tax professional for your jurisdiction

Solana has several NFT standards with different features:

• Metaplex: Most common standard (Token Metadata program)
• Compressed NFTs: Reduced storage costs using state compression
• Programmable NFTs (pNFTs): Added functionality like royalties

Key NFT concepts:

• Mint Address: Unique identifier for the NFT
• Metadata: Contains name, image, attributes
• Royalties: Percentage paid to creator on secondary sales
• Collection: Group of related NFTs

Popular Solana NFT marketplaces:

• Magic Eden (magiceden.io)
• Tensor (tensor.trade)
• Solanart (solanart.io)
• Hyperspace (hyperspace.xyz)

Buying process in Phantom:

1. Connect wallet to marketplace
2. Browse or search for NFTs
3. Click “Buy Now” or place bid
4. Confirm transaction in Phantom
5. NFT appears in your wallet

Common NFT scams to avoid:

• Fake Mint Sites: Look identical to real projects
• Counterfeit NFTs: Copies of real collections
• Pump & Dumps: Artificial price inflation
• Rug Pulls: Creators abandon project after mint

Safety checklist before buying NFTs:

1. Verify collection on Solana Explorer
2. Check creator wallet (should match official announcement)
3. Look for verified badge on marketplace
4. Research project team and community
5. Never click suspicious links in Discord
6. Use burner wallet for new mints

Solana’s DeFi ecosystem includes:

• DEXs: Raydium, Orca, Jupiter (aggregator)
• Lending: Solend, Marginfi, Kamino
• Liquid Staking: Marinade, Jito, BlazeStake
• Derivatives: Drift, Zeta, PsyOptions
• Stablecoins: USDC, USDT, UXD

Key advantages of Solana DeFi:

• Sub-second settlement
• Fees under $0.01 per transaction
• Composability between protocols
• Growing TVL and innovation

Steps to swap tokens using Phantom:

1. Open Phantom wallet and navigate to “Swap”
2. Select input and output tokens
3. Enter amount (check slippage tolerance)
4. Review transaction details
5. Confirm and sign transaction
6. View transaction hash on explorer

Advanced DeFi concepts:

• Slippage: Price movement during transaction
• Price Impact: Effect of your trade on pool
• LP Tokens: Represent liquidity provider shares
• Impermanent Loss: Risk of providing liquidity

Major risks in DeFi:

• Smart Contract Risk: Bugs or exploits in code
• Oracle Risk: Incorrect price feeds
• Rug Pulls: Malicious team actions
• Regulatory Risk: Changing laws

Safety practices for DeFi:

1. Always start with small amounts
2. Research protocols before using
3. Check audit reports (but don't rely solely on them)
4. Monitor for unusual approvals
5. Use hardware wallet for large amounts
6. Diversify across protocols
7. Stay updated on security news

How Phantom connects to decentralized applications:

1. Visit dApp website
2. Click “Connect Wallet” button
3. Select Phantom from options
4. Approve connection in Phantom popup
5. Confirm permissions (view address only)
6. Connection established

Types of permissions:

• View Address: Read-only access
• Request Approval: Sign transactions
• Change Account: Switch connected wallet
• Disconnect: End session

What happens when you sign a transaction:

1. dApp creates transaction instructions
2. Phantom displays transaction details
3. You review and approve/reject
4. If approved, Phantom signs with private key
5. Signed transaction sent to network
6. Confirmation received

Critical security checks before signing:

• Verify the dApp domain is correct
• Check transaction details carefully
• Look for unexpected token approvals
• Confirm amount and recipient
• Be wary of urgent requests

How to manage dApp connections:

• View Active Connections: Settings → Trusted Apps
• Revoke Access: Click “Disconnect” for suspicious dApps
• Token Approvals: Use revoke.cash or Phantom’s approval manager

When to revoke permissions:

• After using a dApp you don’t trust
• If you notice suspicious activity
• Periodically as security maintenance
• Before transferring large amounts

Using Ledger hardware wallet with Phantom adds security:

1. Connect Ledger via USB/BT
2. Open Solana app on Ledger
3. In Phantom, go to Settings → Connect Hardware Wallet
4. Select Ledger device
5. Choose derivation path (default is recommended)
6. Confirm public key matches

Benefits of Ledger + Phantom:

• Private keys never leave hardware wallet
• Physical confirmation required for transactions
• Protection against malware
• Same Phantom interface with added security

Phantom supports multiple wallets in one interface:

• Create New Wallet: File → Add/Connect Wallet → Create New
• Import Wallet: Use seed phrase or private key
• Connect Hardware Wallet: As shown in previous chapter
• Switch Between Wallets: Click profile icon in top-right

Use cases for multiple wallets:

• Separate personal and business funds
• Different risk profiles (e.g., DeFi vs staking)
• Testing new dApps with minimal funds
• Organizing by purpose (NFTs, trading, etc.)

Why customize RPC endpoints:

• Better performance during congestion
• Access to private APIs
• Specialized indexing
• Geographic optimization

How to change RPC in Phantom:

1. Go to Settings → Network Settings
2. Click “Advanced Settings”
3. Enter custom RPC URL (e.g., from Helius, Triton, etc.)
4. Save changes

Popular RPC providers:

• Helius (helius.xyz)
• Triton (triton.one)
• QuickNode (quicknode.com)
• Public RPCs (api.mainnet-beta.solana.com)

Phantom mobile features:

• Biometric authentication
• QR code scanning for addresses
• Built-in dApp browser
• WalletConnect support
• Push notifications

Mobile security best practices:

• Enable screen lock on device
• Use biometric authentication in app
• Be cautious of clipboard malware
• Avoid public WiFi for transactions
• Keep OS and apps updated

Solana’s mobile ecosystem includes:

• Saga Phone: Android with secure element
• Mobile Wallet Adapter: Standard for mobile dApps
• Seed Vault: Secure key storage
• Solana Pay: Mobile payments

Benefits of mobile Web3:

• Access anywhere
• QR code convenience
• Integrated experience
• Growing dApp support

Connecting to dApps on mobile:

1. Open dApp in Phantom’s browser or mobile browser
2. Tap “Connect Wallet”
3. Select Phantom (may auto-connect)
4. Approve connection request
5. Interact with dApp as usual

Mobile-specific features:

• Deep links for seamless switching
• WalletConnect for cross-app connections
• Biometric signing confirmations
• Mobile-optimized interfaces

Phantom power user features:

• Quick Send: Right-click address anywhere to send SOL
• Token Favorites: Star frequently used tokens
• Hidden Tokens: Hide spam tokens from view
• Address Book: Save frequent contacts
• Dark Mode: Easier on eyes

Keyboard shortcuts:

• Ctrl/Cmd + K: Quick search
• Ctrl/Cmd + ,: Open settings
• Ctrl/Cmd + T: New tab

Advanced users can interact with Solana CLI:

1. Install Solana CLI tools
2. Import Phantom keypair (carefully!)
3. Use CLI for advanced operations
4. Monitor with Solana Explorer

Common CLI commands:

solana balance # Check balance
solana transfer # Send SOL
solana stake-delegate # Delegate stake
solana config set --url # Change RPC

Ways to contribute to Solana ecosystem:

• Run a Validator: Help decentralize the network
• Build dApps: Solana developer documentation
• Create Content: Tutorials, translations, docs
• Community: Discord, forums, meetups
• Governance: Participate in decisions

Resources for contributors:

• Solana Foundation (solana.org)
• Solana Developers (solana.com/developers)
• Superteam (superteam.fun)
• GitHub (github.com/solana-labs)