Mastering Solana Development

PDAs, Tokenization, and Enterprise-Ready Token Extensions with Squads Protocol

Table of Contents:

1. Why Build on Solana ?
2. What is SQUADS and its role On Solana Network
3. We’ll explore three key features of Solana’s design that make it well-suited for developers looking to get started in blockchain:
4. Program Derived Addresses
5. For developers, PDAs open up new possibilities
6. Tokenization on Solana on Solana
7. The Rise of Solana Token Extensions

Why Build on Solana?

Solana is a leading blockchain platform that offers developers high speed (currently capable of processing 2000–3000 TPS), low fees (which can be as low as $0.00025 per transaction), and flexible tools for building decentralized applications (dApps). This exceptional performance stems from Solana’s innovative architecture, which utilizes a Solana Virtual Machine(SVM) that is built upon Sealevel and Proof of History (PoH) algorithm.

Here’s a breakdown of how these components contribute to Solana’s strengths:

Sealevel:

Sealevel Multi-threaded runtime maximizes performance by efficiently utilizing hardware through parallel processing across validator cores. This enables better scalability as hardware advances. Unlike EVM chains with global fees, Sealevel facilitates localized fee markets, allowing fees to be tailored per smart contract, preventing unrelated transactions (like NFT minting) from impacting swap or DeFi fees.

The EVM processes transactions/smart contracts in a single-threaded manner, meaning that transactions are executed one by one in a sequential order. The SVM processes transactions/smart contracts in a multi-threaded (parallel) fashion, allowing multiple transactions to be executed simultaneously. source

Gulfstream:

A mempool-less transaction forwarding protocol that optimizes network load and allows validators to begin executing transactions ahead of time (Since every validator knows the order of upcoming leaders), further boosting speed and efficiency.

Turbine:

Think of Turbine as a block propagation mechanism. It efficiently broadcasts ledger entries to all nodes by breaking down transaction data into smaller packets. These packets are then propagated across the network by nodes, with each node in a layer responsible for forwarding data to a small set of nodes in the subsequent downstream layer. This approach minimizes communication overhead and facilitates faster transaction processing and network scalability within the Solana ecosystem.

This Solana-specific protocol streamlines data flow and memory management, leading to low transaction fees (well under $0.01 per transaction).

Proof of History (PoH):

This cryptographic clock embedded within the SVM timestamps events securely, ordering transactions efficiently and contributing to fast block times of around 400 milliseconds.

The diagram provides a simplified overview of the Solana Consensus Algorithm:

It shows how nodes(i.e. computers) communicate with each other, how transactions(Txn) are processed, and how the state of the blockchain is maintained. The key role of the slot leader nodes in proposing new blocks with PoH timestamps, the voting process by validators to confirm the blocks, and the peer-to-peer communication involved in the PoH consensus algorithm.Source

By combining these elements, Solana provides a performant base layer for Web3 innovation, allowing developers to create scalable and cost-effective dApps.

What is SQUADS and its role On The Solana Network?

SQUADS Protocol is a core piece of infrastructure on the Solana blockchain designed to provide secure and flexible multi-signature wallet solutions which give web3 teams and secure individuals full control over their treasury, programs, and tokens. In essence, it does the following:

1. Multi-Sig Wallet Provider. Squads allow teams and DAOs (Decentralized Autonomous Organizations) to create shared wallets where multiple signers (i.e., team members) are required to approve any transaction. This prevents single points of failure and increases security.
2. Customizable Control. Teams can set up rules and hierarchies for how their wallet operates, including transaction thresholds(how many signatures are needed) and permissions for different members.
3. Solana Ecosystem Integration. Squads Protocol is built natively for Solana and its Solana Virtual Machine (SVM), meaning it’s compatible with the whole Solana ecosystem and it focuses on speed and low costs.
4. Developer-Friendly. Squads provides tools and SDKs to make it easier for developers to build applications and services that use multi-signature wallets.

Technical Foundations

1. Tokenization as a Core Element SQUADS uses the SPL token standard on Solana to represent both the funds themselves and the shares investors hold.
2. PDA Leverage. Program Derived Addresses ensure efficient and secure management of fund treasuries and ownership representation.

Furthermore, We’ll explore three key features of Solana’s design that make it well-suited for developers looking to get started in the blockchain

1. Program Derived Addresses (PDAs)
2. Tokenization
3. Token Extensions

Understanding these concepts will equip you to start leveraging Solana’s capabilities for your own projects.

Program Derived Addresses

Let’s explore how Program Derived Addresses (PDAs) are generated on Solana:

Key Principles

• Deterministic. PDAs are not randomly generated. They are calculated based on specific inputs, ensuring a consistent outcome.
• Seeds. The core input for PDA generation is an array of seeds. Seeds can be practically anything: strings, numbers, public keys, etc.
• programId. Every PDA is linked to the ID of the program that controls it.
• Bump Seed. A special ‘bump seed’ is used to prevent collisions. Solana searches for a bump seed that, when combined with the other seeds and programIdcreates a valid PDA lying off the ed25519 curve (meaning it doesn’t have a corresponding private key).
• findProgramAddress.will return both the address and the bump used to kick the address off of the elliptic curve.

Elliptic Curve Cryptography (ECC) is a cryptographic technique that underpins PDAs on Solana.

Moreover, a PDA (Program Derived Address) is a unique type of address on the Solana blockchain that is derived from a program’s ID and seeds (additional data). Unlike regular accounts, PDAs don’t have private keys and are controlled by the program itself. This makes them ideal for various use cases within smart contracts.

Main Functions and Role of PDAs:

1. Escrow Accounts. PDAs can hold assets or tokens securely without requiring a private key, making them suitable for escrow services or situations where funds need to be held temporarily by the program.
2. State Management. Smart contracts often need to maintain state information beyond what is stored in individual user accounts. PDAs can be used to store this global state data, accessible and managed by the program.
3. Unique Identifiers. PDAs can be used to generate unique identifiers for entities within a program, such as creating unique IDs for NFTs or other on-chain assets.
4. Access Control. Programs can use PDAs to enforce access control rules, allowing or restricting specific actions based on the PDA and its associated data.
5. Cross-Program Invocation (CPI). PDAs can be used to facilitate interactions between different programs on Solana, enabling composability and complex multi-program applications.
6. User-centric PDAs. PDAs derived from a user’s public key can store profile information, reputation scores, or access permissions within a decentralized system.
7. Controlled Authorization. Programs can enforce authorization and access control rules by defining rules based on PDAs.

Use Cases in Smart Contract Development:

1. Decentralized Exchanges (DEXs). PDAs can hold tokens during atomic swaps, ensuring secure and trustless exchange of assets.
2. NFT Marketplaces. PDAs can represent individual NFTs or collections, managing ownership and transfer of these digital assets.
3. Staking Programs. PDAs can store staked tokens and track rewards associated with staking activity.
4. DAOs (Decentralized Autonomous Organizations). PDAs can be used to manage DAO treasuries, voting mechanisms, and governance processes.

Generating a PDA

Program Derived Addresses are special accounts in Solana that:

• Deterministic: Their address is derived from a set of seeds and the program ID, ensuring a consistent outcome.
• Off-Curve: Designed to exist outside the regular Ed25519 elliptic curve used for standard Solana addresses. This means they cannot be controlled by a corresponding private key.
• Program-Owned: The program associated with the PDA has signing authority over the account.

Rust Code for PDA Generation

Here’s a Rust code example demonstrating how to generate a PDA using the find_program_address function:

// A pda is a public key of an account
// A bump (one byte) is used to push a potential PDA off the ed25519 elliptic curve
let ( pda, bump_seed) = Pubkey::find_program_address(&[b"random-seed"], &program_id);

Creating a PDA essentially means to initialize the address with space and set the state to it. A normal keypair account can be created outside of our program and then fed to initialize its state. Unfortunately, for PDAs, it has been created on chain, due to the nature of not being able to sign on behalf of itself. Hence we use invoke_signed to pass the seeds of the PDA, along with the funding account’s signature which results in account creation of a PDA.

This function expects 3 parameters:

• instruction — instruction to invoke.
• account_infos — accounts required by instruction, where one is a pda required as the signer.
• signers_seeds — seeds to derive pda.

use solana_program::{
    account_info::{next_account_info, AccountInfo},
    entrypoint,
    entrypoint::ProgramResult,
    program::invoke_signed,
    pubkey::Pubkey,
    system_instruction,
    system_program,
};

entrypoint!(process_instruction);

fn process_instruction(
    program_id: &Pubkey,
    accounts: &[AccountInfo],
    instruction_data:&[u8],
) -> ProgramResult {
    let account_info_iter = &mut accounts.iter();
    let payer = next_account_info(account_info_iter)?;
    let vault_pda = next_account_info(account_info_iter)?;
    let system_program = next_account_info(account_info_iter)?;

    assert!(payer.is_writable);
    assert!(payer.is_signer);
    assert!)vault_pda.is_writable);
    assert_eq!(vault_pda.owner, &system_program::ID);
    assert!(system_program::check_id(system_program.key));

    let vault_bump_seed = instruction_data[0];
    let vault_seeds = &[b"vault", payer.key.as_ref(), &[vault_bump_seed]];
    let expected_vault_pda = Pubkey::create_program_address(vault_seeds, program_id)?;

    assert_eq!(vault_pda.key, &expected_vault_pda);

    let lamports = 10000000;
    let vault_size = 16;

    invoke_signed(
        &system_instruction::create_account&
            &payer.key,
            &vault_pda.key,
            lamports,
            vault_size,
            &program_id,
        ),
        &[
            payer.clone(),
            vault_pda.clone(),
        ],
        &[
            &[
                b"vault",
                payer.key.as_ref(),
                &[vault_bump_seed],
            ],
        ]
    )?;
    Ok(())
}

How Does Squads Protocol Leverage PDAs?

Squads take the PDA concept and focus it on enabling multi-signature wallets and complex governance:

• Squad Vaults. Each squad (member) on Squads has a corresponding PDA that acts as its secure, multi-sig vault. This PDA is controlled by the governance rules defined within the squad.
• Membership Management. SQuads use PDAs to store information about squad members and their assigned roles. This provides streamlined on-chain permission management and voting mechanisms.
• Cross-Program Interaction. SQuads vaults (PDAs) can hold tokens and interact with other Solana dApps. For example, a squad’s treasury might be invested in a DeFi protocol, governed via Squads’ voting mechanisms.

Additional Ways Squads Extend PDA Functionality

• Fine-Grained Permissions. Squads go beyond simple multi-sig. They allow developers to create squads with intricate permissions, approval thresholds, and delegation structures tailored to various organizational models.
• Composable Governance. Squads focuses on building a foundational infrastructure for on-chain governance, allowing its multi-sig capabilities to be integrated into a wide variety of applications.

Squads make the power of PDAs easily accessible for developers who want to incorporate secure, decentralized governance and treasury management directly into their Solana applications. This has huge implications for DAOs, DeFi protocols, and any dApp with a need for collaborative decision-making.

Tokenization on Solana

SPL Tokens: Solana’s native token standard (similar to Ethereum’s ERC-20 standard) is called SPL. It provides the blueprint for creating and managing various types of tokens on the Solana blockchain.

SPL tokens can be:

1. Fungible. Representing interchangeable assets like cryptocurrencies, stablecoins, or loyalty points.
2. Non-Fungible (NFTs). Representing unique assets like digital artwork, collectibles, or in-game items.

Token Management: The SPL standard defines core functions for tokens, including:

1. Creating (minting) and destroying (burning) tokens
2. Transferring tokens between accounts
3. Approving another account to spend tokens on your behalf

Not let’s try to Mint or create your First Fungible Token:

Here’s a comprehensive guide to creating a fungible token using the SPL Token standard on Solana. I’ll cover installation, setup, and token creation using the command line interface (CLI) and common libraries.

Prerequisites:

• Node.js and npm (Node Package Manager) installed
• Solana CLI (Command-Line Interface) installed

Solana Development Environment:

• Solana’s SPL token standard. For simple token creation, understanding how SPL works is key. Check out the official docs here:
• Rust Programming Language
• Anchor as Framework

2. A Solana Wallet: Phantom or Solflare are popular choices.

• Local Test Validator: Having a local Solana network for testing(e.g. Solana Explorer and Solana Devnet) is incredibly valuable for development speed and iterations. The Solana CLI tools (solana-test-validator) help you set one up.

3. Text Editor/IDE: Pick your favorite code editor. Visual Studio Code with the Rust extension is a common choice for Solana development or Solana Playground (a browser-based development environment).

To create a new Fungible Token on Solana, you can use the Token Program’s InitializeMint instruction.

Flow minting Fungible token credits to Solana Labs

Project Setup (if using Anchor)

• Create a new Anchor project: anchor init my-token-project
• Navigate to the my-token-project directory.

SPL Token Program Dependencies

• Add the necessary SPL Token program dependencies to your Cargo.toml

file:

[dependencies]
spl-token = "3.3.0" 
anchor-lang = "0.24.2"
anchor-spl = "0.24.2"

Define the Token Mint Account

• Create a Rust struct to represent the token mint account in your Anchor program (programs/my-token-project/src/lib.rs):

use anchor_lang::prelude::*;
use anchor_spl::token::{self, Mint, Token, TokenAccount};

declare_id!("Fg6PaFpoGXkYsidMpWTK6W2BeZ7FEfcYkg476zPFsLnS"); // Replace with your program ID

#[program]
pub mod my_token_project {
    use super::*;

    pub fn initialize_mint(ctx: Context<InitializeMint>, decimals: u8, authority: Pubkey) -> Result<()> {
        // ... (Implementation in next step)
    }
}

#[derive(Accounts)]
pub struct InitializeMint<'info> {
    #[account(init, payer = payer, mint::decimals = decimals, mint::authority = authority)]
    pub mint: Account<'info, Mint>,
    #[account(mut)]
    pub payer: Signer<'info>,
    pub system_program: Program<'info, System>,
    pub token_program: Program<'info, Token>,
    pub rent: Sysvar<'info, Rent>,
}

Implement Token Mint Initialization

• In the initialize_mint function, initialize the mint account:

    // Inside the initialize_mint function:
    token::initialize_mint(ctx.accounts.into_initialize_mint_context(), decimals, authority, None)?;
    Ok(())
}

Create Associated Token Accounts (ATAs)

• ATAs are used to hold token balances for individual users/wallets.
• Define a function to create ATAs, if necessary (Anchor can often handle this automatically):

pub fn create_associated_token_account(ctx: Context<CreateAssociatedTokenAccount>) -> Result<()> {
    // ... (Implementation using anchor_spl::associated_token) 
}

// Account struct for CreateAssociatedTokenAccount (if needed)

Minting Tokens

• Implement a function to mint tokens into a destination ATA:

pub fn mint_tokens(ctx: Context<MintTokens>, amount: u64) -> Result<()> {
    // ... (Implementation using token::mint_to) 
}

Checking Balances

pub fn get_token_balance(ctx: Context<GetTokenBalance>) -> Result<u64> {
   let amount = ctx.accounts.token_account.amount;
   Ok(amount)
}

Wallet Integration

• Use a Solana JavaScript client library (e.g., @solana/web3.js) to interact with your program from a frontend/wallet:
• Create ATAs for users.
• Mint tokens.
• Query token balances.

Transfer Function Implementation

1. Include the necessary imports:

use anchor_lang::prelude::*;
use anchor_spl::token::{self, Transfer};

2. Define a function for transferring tokens:

pub fn transfer_tokens(ctx: Context<TransferTokens>, amount: u64) -> Result<()> {
    let from_account = &ctx.accounts.source;
    let to_account = &ctx.accounts.destination;
    let authority = &ctx.accounts.authority;

    // Transfer tokens from source to destination
    let transfer_ctx = Transfer {
        from: from_account.key(),
        to: to_account.key(),
        authority: authority.key(),
    };
    token::transfer(ctx.accounts.into_transfer_context(), amount, &transfer_ctx)?;
    Ok(())
}

Account Structs:

Update your Accounts structs to include the source, destination, and authority accounts:

#[derive(Accounts)]
pub struct TransferTokens<'info> {
    #[account(mut)]
    pub source: Account<'info, TokenAccount>,
    #[account(mut)]
    pub destination: Account<'info, TokenAccount>,
    #[account(signer)]
    pub authority: Signer<'info>,
    pub token_program: Program<'info, Token>,
}This code transfers 1000 tokens from your wallet's token account to the recipient's token account.

Calling the Transfer Function:

• In your wallet integration or program logic, call the transfer_tokens function with the appropriate accounts and amount.

Additional Considerations

• You might want to add checks for the source account’s balance before attempting a transfer.
• Error handling is crucial for real-world applications. Consider implementing proper error handling for potential failures during the transfer process.

Integration with Your Existing Program:

• Include the new function and account structs in your existing program code.
• Update your program logic or wallet integration to call the transfer_tokens function when needed.

Non-Fungible Tokens (NFTs)

Solana also supports the creation and management of non-fungible tokens (NFTs), which represent unique digital assets such as artwork, collectibles, or in-game items. The Metaplex protocol, built on top of the Solana Token Program, provides a standard for NFT creation and management.

Creating an NFT

The Toolkit: Metaplex provides various tools, including:

• Metaplex SDK. For development and direct interaction with Metaplex programs.
• Candy Machine. A standard for creating and distributing large NFT collections.
• Metaplex Storefront. For creating your own minting website.

Step-by-Step Guide

1. Prerequisites

• Solana Wallet. A wallet compatible with Solana, such as Phantom or Solflare. (Already Mentioned above)
• Solana faucets. Tools that dispense or airdrop small amounts of SOL tokens( The tokens received have no real-world value for testing purposes only),
• Node Provider. A connection to a Solana node (RPC endpoint) for interaction with the blockchain. You can use a public node provider or run your own.

2. Prepare Your Assets

• Image, Video, or Audio: This is the core of your NFT.

Metadata (JSON Format): A JSON file containing:

• Name
• Symbol
• Description
• External link to your asset
• Creator information
• Royalty settings
• …and more (check Metaplex documentation for all possibilities)

3. Upload Assets to a Storage Solution

• Decentralized Storage: Options like Arweave or IPFS offer resilience and immutability.
• Centralized Storage: Solutions like AWS S3 are possible, but bear in mind there’s a less decentralized aspect.
• Important: Your metadata JSON file should reference the URI (unique resource identifier) of your stored asset.

4. Create the NFT

Using Metaplex SDK:

• Connect to the Solana network using your RPC endpoint.
• Fetch your wallet’s keypair for signing transactions.
• Utilize the create function (or similar variations) within the SDK to create the NFT, passing your metadata.

Using Candy Machine:

• Configure a Candy Machine with your assets, collection settings, minting price, etc.
• Follow the Candy Machine process to create the NFTs as part of a larger collection.

5. Mint the NFT

• Minting Site: Have a user-friendly minting website set up (Metaplex Storefront can help) or connect to an existing NFT marketplace.
• Minting Process: Users connect their wallets and initiate a ‘mint’ transaction, paying the required SOL and interacting with the Metaplex programs to create the NFT in their wallet.

How to get started with Metaplex’s JavaScript library for interacting with Candy Machines.

Understanding Libraries & Umi

• Metaplex JavaScript SDK: This core library provides the tools for interacting with Solana and Metaplex programs, including Candy Machines.
• Umi Framework: Umi is designed to create lightweight, modular JavaScript applications. Metaplex leverages it for a flexible development experience without imposing a rigid structure.

Installation

1. Project Setup: Assuming you have a Node.js project setup, initialize it (if needed) with npm init -y.
2. Understanding Libraries & Umi

• Metaplex JavaScript SDK: This core library provides the tools for interacting with Solana and Metaplex programs, including Candy Machines.
• Umi Framework: Umi is designed to create lightweight, modular JavaScript applications. Metaplex leverages it for a flexible development experience without imposing a rigid structure.

Installation

1. Project Setup: Assuming you have a Node.js project setup, initialize it (if needed) with npm init -y.
2. Dependencies: Install the required packages:

npm install \
  @metaplex-foundation/umi \
  @metaplex-foundation/umi-bundle-defaults \
  @solana/web3.js \
  @metaplex-foundation/mpl-candy-machine

Next, you may create your Umi instance and install the mplCandyMachine plugin like so.

import { createUmi } from '@metaplex-foundation/umi-bundle-defaults'
import { mplCandyMachine } from '@metaplex-foundation/mpl-candy-machine'

// Use the RPC endpoint of your choice.
const umi = createUmi('http://127.0.0.1:8899').use(mplCandyMachine())

Then you want to tell Umi which wallet to use. This can either be a keypair or the solana wallet adapter.

That’s it, you can now interact with NFTs by using the various functions provided by the library and passing your Umi instance to them. Here's an example of fetching a candy machine account and its associated candy guard account.

import { publicKey } from '@metaplex-foundation/umi'
import {
  fetchCandyMachine,
  fetchCandyGuard,
} from '@metaplex-foundation/mpl-candy-machine'

const candyMachinePublicKey = publicKey('...')
const candyMachine = await fetchCandyMachine(umi, candyMachinePublicKey)
const candyGuard = await fetchCandyGuard(umi, candyMachine.mintAuthority)

Important Notes:

• Security. Protecting your wallet’s keypair is paramount. Avoid storing it directly in code. Explore secure storage solutions for production setups.
• RPC Endpoint. Use the appropriate RPC endpoint (Devnet, Testnet, or Mainnet-beta) based on your environment.
• Metadata. Ensure your NFT’s metadata is prepared before minting. This might involve uploading assets and preparing the JSON file.

For more visit Metaplex Developer Documentation.

Some examples of assets that can be tokenized on Solana

1. Securities. Stocks, bonds, derivatives, commodities, funds, and more.
2. Currencies. Fiat currencies like USD, EUR, JPY, digital currencies, and cryptocurrencies.
3. Real estate. Title deeds, equity shares, fractional ownership.
4. Debt. Invoices, loans, credit lines.
5. Identity. Tokens can represent licenses, certificates, and digital identity documents.
6. Virtual assets. In-game items, collectibles, points, stablecoins, and much more.

With this flexibility, tokenization on Solana has the potential to unlock trillions of currently illiquid assets and make them tradable on a global scale.

Token Extensions: The Basics

Token extensions are add-ons to the SPL Token standard, enabling powerful new features and customizations for Solana tokens.

These extensions are managed by specific programs. Program Derived Addresses (PDAs) give programs the authority to control and interact with tokens that have extensions enabled.

Key Functionalities

Here’s a look at some commonly used token extensions, along with their purposes:

Confidential Transfers:

• Purpose. Hides the transferred amount and sometimes recipient/sender addresses for privacy.
• Use Case. Transactions for sensitive financial assets or private auctions.

Transfer Fees:

• Purpose. Automatically deducts a small fee from each token transfer as a percentage or fixed amount.
• Use Case. Revenue generation for protocols or royalty payments.

Vesting:

• Purpose. Schedule a lock-up period for tokens or release them gradually.
• Use Case. Team and investor token allocations, reward distribution.

Governance:

• Purpose. Enables token-based voting and decision-making within a decentralized organization (DAO).
• Use Case. Protocol upgrades, treasury management.

Custom Transfer Logic:

• Purpose. Adds specific rules or conditions that must be met for token transfers to execute.
• Use Case. Enforcing whitelists or compliance requirements.

On-Chain Implementation Example (Hypothetical)

Let’s imagine a project that issues a stablecoin token with a focus on regulated financial use cases:

• Confidential Transfers. Ensures transaction privacy for sensitive financial activity.
• Transfer Fees. A small fee on trades is collected for protocol revenue, maintaining the stablecoin peg.
• Custom Transfer Logic. Transfers are only permitted to wallets that have passed KYC (Know Your Customer) checks to maintain compliance.

How It Works

1. Program Development. The project develops a smart contract program that handles the stablecoin logic and its extensions.
2. Deployment. The program is deployed on Solana.
3. Token Creation. Stablecoin tokens are minted with the designated extensions enabled.
4. PDA Control. The deployed program gains authority over tokens (via PDAs) that have the enabled extensions.

Key Takeaways

• Flexibility. Token extensions bring a high degree of customization to tokens on Solana.
• Composability. dApps using token extensions can seamlessly communicate and interact with each other.
• New Possibilities. These extensions open up new domains of token applications in DeFi, regulated assets, governance, and more.

Ecosystem Libraries and Frameworks

Solana’s ecosystem and community have developed various libraries and tools to facilitate the development of token extensions. Here are some notable examples:

• Metaplex. Metaplex (which recently announced new standards called Core) is a comprehensive protocol and standard for creating and managing non-fungible tokens (NFTs) on Solana. It provides a foundation for building token extensions and custom NFT experiences.
• Anchor. Anchor is a framework for building Solana programs using the Rust programming language. It simplifies the development of token extensions by providing higher-level abstractions and tooling.
• Solana Program Library (SPL). The SPL provides a collection of reusable programs and libraries for building applications on Solana, including token extensions.

By leveraging these resources and the growing Solana developer community, you can more easily develop and integrate token extensions into your applications.

These features allow tokens launched on Solana to be regulatory-compliant and enterprise-ready

For example, securities laws often require:

• Restricted access. Only qualified investors can hold securities
• Transfer approval. Securities can only trade between approved entities
• Ongoing disclosures. Kepler legal documents attached to the tokens
• Compliance controls. Revoke non-compliant holders

Token Extensions will enable Solana tokens to satisfy these requirements natively on-chain. This will provide the ideal platform for enterprises to adopt blockchain technology.

Keep on Learning and Building

Hopefully, this overview gets you excited about the possibilities on Solana! With capabilities like PDAs, tokenized assets, and Token Extensions, developers have flexible tools at their disposal to start building the next generation of fast, scalable, crypto-powered apps.

To learn more and start building, check out these Solana developer resources:

• https://docs.solana.com — Official docs are a great starting point.
• https://github.com/Squads-Protocol/v4
• https://solana.com/developers — Find the latest resources, news, and programs.
• https://solana.com/developers/tutorials — Step-by-step text & video tutorials.
• https://soldevs.org/ — Active Discord community of Solana developers.
• https://solanacookbook.com/ — Code snippets and examples for common tasks.
• https://github.com/solana-labs — Official SDKs and program examples.
• https://www.anchor-lang.com/
• https://docs.squads.so/main/frequently-asked-questions/general

So don’t wait, dive in and start leveraging the speed, low fees, and capabilities of Solana today! We can’t wait to see what you build.

References: sources consulted are duly hyperlinked.

Feel free to reach out to me on Twitter @Oxmarkdams with any suggestions or opinions. If you find this even slightly insightful, please share it — I’ve invested countless hours crafting this content, and your support means everything in helping it reach a wider audience. Thank you.