Layer-1 blockchain project Solana has released a new state compression feature for its network. The new on-chain storage system would significantly reduce data storage on Solana.
Developed by Solana Labs and Metaplex, using state compression will reduce the cost of minting non-fungible tokens (NFTs) by 24,000 to 24,000 times, according to an update on its Twitter handle today.
Solana’s state compression feature uses the Merkle tree, a data structure that allows off-chain verification on Solana while drastically reducing on-chain storage costs. The innovation will affect the NFT niche and other projects based in the Solana network by lowering fees even further
The Merkle tree also called the binary hash tree, is known for encoding blockchain data with high efficiency and security. It is a data structure applied to verify large data contents easily.
Commenting on the newest improvement on the network, Solana’s technical lead, Jon Wong, noted that the state compression would constrict data size, reducing the cost of NFT minting. Wong also stated that the data compression would not affect the cryptographic security and decentralization that the network is characterized by.
“As of April 5, minting 1 million uncompressed NFTs on Solana cost over $250,000. Using compressed NFTs, it is around $110,” Solana tweeted.
Slow But Steady Rebound
The Solana ecosystem appears to have its worst moments behind it after the project suffered immensely as a result of its exposure to the now-defunct crypto exchange, FTX. Since losing one of its major supporters, the network and its native asset SOL have not fared very badly.
Additionally, Polygon’s CEO, Ryan Wyatt, and Ethereum co-founder, Vitalik Buterin, showed support for the network, hoping it would put the setback behind it. SOL is currently trading above $20, more than 150% above its December low of $8.
