Minting Costs for Solana NFTs Substantially Lowered with New Feature
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Minting Costs for Solana NFTs Substantially Lowered with New Feature

New state compression technology slashes costs of 1M NFTs on Solana to just $110.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

Solana and a group of its ecosystem partners rolled out new a new feature that makes storing non-fungible tokens (NFTs) on-chain much cheaper. The feature, known as state compression, reduces the cost of minting 1 million NFTs on Solana to just around $110.

Solana Teams Up With Ecosystem Partners to Reduce Costs of Storing NFTs On-Chain

Solana announced on Thursday the launch of ‘state compression,’ a new feature that makes storing NFTs on the blockchain significantly cheaper. According to the official post, with state compression, minting 1 million compressed NFTs on a blockchain costs roughly $110. Solana said the function could be used to store any data on-chain, though the first use of this technology is compressed NFTs.

“Compressed NFTs are just like regular NFTs, only drastically cheaper — minting 100 million compressed NFTs costs about ◎50 to store on-chain, compared to ◎1.2mm for their uncompressed counterpart.”

– Solana wrote in the announcement.

State compression represents a cross-ecosystem effort built by Solana and Metaplex developers in collaboration with Remote Procedure Call (RPC) providers and indexers such as Triton, Helius, and SimpleHash. By taking advantage of the so-called Merkle trees, this sophisticated technology is designed to reduce transaction costs dramatically. Without state compression, it costs around 1,200 SOL (roughly $24,000) to store 100,000 million NFTs on the Solana blockchain.

Jon Wong, a technical lead on the ecosystem engineering team at the Solana Foundation, said state compression is a “compression-friendly data structure” that enables developers to keep “a small bit of data on-chain and updates directly in the Solana ledger, cutting the data storage cost down dramatically while still using the security and decentralization of Solana’s base layer.”

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How Does it Work?

Unlike typical compression methods, which host a bunch of NFT data on-chain, the state compression feature allows only a smaller, concentrated version of data to be hosted on the blockchain using Merkle trees. The remaining portion of the data can be accessed off-chain via Solana RPC providers.

If the individual values kept off-chain change, the value stored on-chain would also change. To clarify how it works, Wong compared it to a receipt a buyer receives when they purchase an item. Although the product might not be near them, they own the receipt, which verifies them as the product’s honor.

The move came amid a slight resurgence in demand for NFTs after a severe crypto winter obliterated the digital collectibles market last year.

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Do you think other major blockchains will also implement state compression in the future? Let us know in the comments below.