Solana achieves fast, cheap transactions through a combination of technical choices, including a unique timing mechanism and processing transactions in parallel, that let it handle far more throughput than many other blockchains, part of the design covered in \[pillar hyperlink: What Is Solana\].
Proof of History
Solana uses a mechanism called Proof of History, which timestamps transactions before consensus, letting validators agree on ordering more quickly than networks that must establish timing through consensus alone.
Parallelization
Solana can process many non-conflicting transactions simultaneously rather than strictly one after another, significantly increasing overall throughput compared to fully sequential processing.
Fee model
Because the network can handle high transaction volume, individual fees stay extremely low, typically fractions of a cent, even during periods of meaningful network activity.
Trade-offs
This performance comes with trade-offs: Solana's architecture is more complex to run, has led to past network stability issues, and has a shorter track record than older, more conservatively designed chains. See Solana vs Ethereum for a fuller comparison.