• Solana, on April 6, announced the introduction of state compression, a new feature that significantly reduces the cost of minting NFTs.
• State compression can be used to store any type of on-chain data and is typically used with non-fungible tokens (NFTs).
• It’s estimated that it costs 5.35 SOL ($113) to mint and store one million compressed NFTs.
Solana Introduces Low-Cost NFTs with State Compression
What is State Compression?
State compression is a new feature introduced by Solana on April 6th that significantly reduces the cost of minting Non-Fungible Tokens (NFTs). The approach involves modifying an existing Merkle tree on the Solana blockchain instead of carrying out a standard transaction, allowing for cheaper NFT transactions.
How Much Does it Cost?
It costs 5.35 SOL ($113) to mint and store one million compressed NFTs on Solana using this feature. This stands in stark contrast to the 12,000 SOL ($253,680) needed to mint the same amount without state compression. Furthermore, it only costs 0.000005 SOL (less than one cent) to mint a single compressed NFT using this method.
Who is Using State Compression?
At least five projects are already making use of state compression according to Solana’s blog post announcing this feature. These projects are taking advantage of reduced transaction costs and faster processing speeds compared to standard transactions on other blockchains.
Conclusion
State compression allows users to save money when they want to create or transfer non-fungible tokens (NFTs). The cost savings are significant – it costs just $113 for 1 million compressed NTFS compared with $253,680 without state compression – and at least five projects have already begun using this technology for their operations.
