Our solar system formed as a massive protosolar disk of spinning gas and dust. Gravity pulled light gasses into the center – eventually, the gravitational pressure and gas density was enough to initiate hydrogen fusion, and the protostar became the sun. Dust was slowly accumulating into rocks and asteroids, and eventually the core of the rocky planets, and the gas giants. Meanwhile, the solar wind from the new star was now pushing light elements and molecules (hydrogen and water) away from the sun. This left the materials for primarily rocky planets in the inner solar system, and pushed the materials for gas giants out beyond the orbit of Mars. Earth was later bombarded with icy comets, which is how we have so much water.
This is the commonly accepted model of our solar systems formation. There are other proposed models that have the gas giants forming close in and migrating to the outer solar system later.
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