CJ – Cryptocurrency Enthusiast
Solana (SOL), a high-performance blockchain network, has revealed its latest technology, "state compression," designed to reduce data storage costs on-chain. The implications of this technology could potentially affect the NFT crypto market and Solana-based web3 projects. State compression lowers on-chain storage costs by utilising Merkle trees, a kind of data structure that permits verifiable off-chain storage on Solana.
State compression, created by Solana Labs and Metaplex, is being used to reduce data size, which lowers the cost of manufacturing non fungible tokens. The RPC providers and indexers Helius, Triton, and SimpleHash helped create the technology, and Phantom and Solflare, two Solana-based web3 wallets, provided assistance. According to Jon Wong, technical lead on the ecosystem engineering team at the Solana Foundation, the incorporation of state compression into the Solana blockchain has decreased storage costs without affecting the cryptographic security or decentralisation provided by the network. According to him, minting 100 million compressed NFT coins would cost about 50 SOL ($1,000) if state compression techniques were used.
As of now, some projects within the Solana ecosystem, such as Dialect and Crossmint, have already started utilizing state compression to build web3 experiences and create compressed NFTs. The technology's success in reducing storage costs has the potential to attract more users and developers to the Solana ecosystem. With the introduction of state compression, Solana is positioning itself as a more cost-effective and efficient blockchain network for developers looking to build decentralized applications.