• Solana has unveiled a new state compression technology that will reduce the cost of storing 1 million non-fungible tokens (NFTs) on its network to around 4 SOL, or $110.
• This “true cross-ecosystem effort” was built by developers at Solana Labs and Metaplex, with support from Phantom, Solflare, and the Solana Foundation.
• Projects like Helium, DRiP, and Wordcel are already using the new solution to offer scalable services to users of the blockchain.
Solana Releases State Compression Technology
Popular layer-1 blockchain Solana has unveiled a new solution that will dramatically decrease the cost of storing data on-chain – state compression technology. In a Thursday blog post, Jon Wong from the Solana Foundation said this compression-friendly data structure allows developers to store a small bit of data on-chain and updates directly in the Solana ledger, cutting down storage costs significantly while still using the security and decentralization of its base layer.
How State Compression Works
State compression takes advantage of Merkle trees – a hash-based data structure which is a generalization of the hash list. This way it reduces storage costs when minting 1 million NFTs on the network down to around 4 SOL ($110). Comparatively, without state compression it would cost roughly 1,200 SOL (more than $24,000).
Projects Already Using State Compression
Some projects built on the Solana ecosystem are already taking advantage of this technology to cut costs. These include blockchain messaging service Dialect and Crossmint (an NFT platform), user-owned wireless network Helium, NFT distributor DRiP and on-chain publisher Wordcel. All these companies are now offering more scalable services thanks to state compression being available on mainnet-beta.
Solana’s Price Performance
SOL token is currently trading at $20 largely flat over past day; however it’s down by 92% compared to its all time high registered in November 2021 (which was around $259).
Tumultuous Year for Solana
Despite being designed as an efficient speed first platform “Ethereum Killer”; last year was quite tumultuous for Solana marked by outages & overloads due to significant exposure to Sam Bankman Fried’s FTX exchange failure in November leading many investors dumping their holdings