Solana, a blockchain in Layer-1, has introduced a new solution known as state compression that can significantly lower the expense of on-chain storage. The costs of on-chain storage can be significantly reduced by using state compression technology.
1/ Solana's low fees have made it an industry leader. But thanks to a recent innovation from teams across the ecosystem, it's about to cost even less.
Introducing state compression, a new way to store data on Solana that lowers cost significantly. https://t.co/0baMJ0vOn1
— Solana (@solana) April 6, 2023
Furthermore, this technology confirms to decrease the cost of creating one million non-fungible tokens (NFTs) on the network to around $110.
The Solana Foundation’s tech lead, Jon Wong, revealed that compressed NFTs are now accessible on the mainnet-beta of Solana in a blog post on April 6. Moreover, this development is expected to bring in a new period of innovative on-chain product experiences.
Wong also suggested that these compressed NFTs are significantly more affordable than their uncompressed counterparts, with a cost reduction of between 2,400 and 24,000 times for NFTs with identical structures.
A person on Twitter tweeted that the state compression solution is a “game changer” and a means to enhance Solana’s feasibility for enterprise use cases.
Solana’s tech lead has stated that Merkle trees are crucial to the state compression process. They have the ability to efficiently reduce the verifiability of a complex data tree into a single hash or fingerprint.
This hash or fingerprint represents the tree’s present state. This makes them an ideal choice for implementing state compression in Solana.
A Genuine Cross-Ecosystem Collaboration
Wong highlighted that by using this data structure optimized for compression, developers can store a small amount of data on the Solana blockchain and update it directly on the ledger.
Solana’s base layer offers security and decentralization. Additionally, utilizing it significantly reduces the cost of data storage. Wong described the development as a genuine cross-ecosystem collaboration.
Solana Labs and Metaplex developers worked on creating the solution, while Phantom and Solflare provided support. RPC node providers and indexers such as Helius, Triton, and SimpleHash powered the solution.
Moreover, several projects within the Solana ecosystem are already utilizing state compression technology. Some of these projects include Dialect, Crossmint, Helium, and Wordcel.
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There are projects that use state compression for different purposes. These include NFT minting, enhancing user experience, and even business loyalty programs.
The adoption of state compression by these projects clearly indicates its usefulness and efficiency. The technology could fundamentally alter how to manage blockchain-based initiatives.