Solana has introduced a solution that aims to reduce on-chain storage costs for non-fungible tokens (NFT).
See related article: Solana NFT sales surge as traders farm for Tensor rewards
Fast facts
- On-chain storage refers to storing data on the blockchain network, which can be a costly process. The new solution, called “state compression,” reduces the amount of on-chain storage required to store NFTs, resulting in lower costs for creators and buyers.
- Solana claimed in a blog post on Thursday that state compression can reduce storage costs by up to 100 times.
- State compression solution could become an important feature for NFT creators, who often face high costs when minting NFTs.
- Minting refers to the process of creating and putting NFTs on the blockchain. The process requires a certain amount of digital storage space, which can be expensive. By reducing the storage space needed, state compression can make NFT minting more affordable for creators.
- The Solana blockchain’s native cryptocurrency (SOL) price was little changed following the announcement and was trading at US$20.5. Meanwhile, the Forkast SOL NFT Composite, a proxy measure for the Solana NFT market, dropped 0.28%.
- The state compression solution comes at a time when the Solana ecosystem has taken a hit from popular NFT projects leaving the network. Degods and Y00ts recently began migrating to Ethereum and Polygon, respectively.
See related article: DeGods begins migration to Ethereum
