• Solana attempts to make a comeback with the introduction of “State Compression” technology, which promises to reduce the cost of minting NFTs on the network.
• State Compression is already being used by leading NFT firms like Crossmint and Dialect to power customer loyalty and seamless messaging experiences.
• With State Compression, projects on Solana could now cost even less, driving SOL prices up and further increasing adoption of the network.
Solana Introduces Innovative „State Compression“ Technology
Solana has announced a groundbreaking new feature called „State Compression“ that promises to make minting NFTs significantly cheaper on its network. The technology utilizes Merkle trees for off-chain storage, reducing on-chain storage costs.
Leading NFT Firms Already Utilizing State Compression
Crossmint, an NFT firm using a modular suite of APIs and tools to create, distribute, and custody NFTs at scale is already taking advantage of this technology, building integrations that help companies across the globe power deeper customer loyalty. Similarly, Dialect is utilizing state compression to cover the cost of minting NFT stickers for its large user base. Helium, DRiP and Wordshop are also using state compression in their platforms.
Reduced Costs Could Drive Up SOL Prices
With state compression making projects cheaper than ever before, more users may begin using Solana as their go-to platform for web3 experiences. This could drive up SOL prices as demand increases while supply remains relatively stable.
Cautious Optimism From Crypto Community
The crypto community has been cautiously optimistic about Solana’s new feature so far; many have noted that this could be what brings Solana back into discussions around Web3 development given its reputation for inconsistency and breakdowns in the past.
Conclusion
If successful in reducing costs while still delivering high performance speeds with minimal environmental impact, State Compression could be just what the crypto community needs to get back onboard with Solana – driving SOL prices up in the process.
