Solana is set to deploy State Compression to reduce NFT minting costs
Solana has currently dominated the market in terms of the most cost-effective minting price for non-fungible tokens. Compare that to Ethereum and the difference reflects that while the cost is still on the lower side, State Compression brings it down further. To explain briefly, state compression is a way to store data on-chain and cut costs by a huge margin.
Minting 1 million NFTs on Solana costs approximately $253,680. With government compression in practice, the same cost is estimated to come down to $113.10. These numbers are based on the value of SOL as of April 5, 2023, when the token was valued at $21.41 each.
Polygon looks pretty good for minting a thousand NFTs since the price for the same comes to around $33. However, a higher number of NFTs brings its own problems, and Polygon starts to fall short in the number of benefits it can offer. Minting one million NFTs comes to $32,832.16.
State Compression is already live on some projects in Solana. Teams from Dialect and Crossmint have started to share the benefits, while Helium, DRiP and Wordcel are experiencing how it works.
Dialect leverages the capabilities of State Compression to cover the embossing costs of NFT stickers. The benefit is eventually passed on to over a thousand users in the ecosystem. Dialect is a messaging service based on blockchain technology.
Crossmint expresses in a unique way the use of State Compression by creating integrations that increase customer loyalty towards the companies. Crossmint is an NFT and API tools company.
Overall, the use of State Compression is done primarily to bring scalability and an improved user experience to Solana.
The utility of State Compression is currently limited to NFTs; However, it can later be extended to store data of any kind. It is built by the developers of Metaplex and Solana Labs and is widely supported by Triton, Helius, Phantom, SimpleHash, Solana Foundation and Solflare.
Users exploiting State Compression take advantage through Merkle trees, a data structure that allows storing a small bit of data on-chain while updating the same directly to the Solana Ledger. Merkle Trees helps State Compression cut costs without compromising the security and decentralization of Solana’s base layer.
The community has welcomed the move with a positive response to State Compression. Insure DeFi, pioneers in KYC and NFT i decentralized financehave called this good news, adding that they love this development.
Solana is a blockchain built to accelerate mass adoption. It is mainly characterized by the speed with which it executes transactions, composability and commitment to a green stand with its operations.
