Solana has introduced a solution designed to reduce on-chain storage fees for non-fungible tokens.
On-chain storage refers to the costly procedure of storing data on the blockchain network. State compression, the new solution, reduces the quantity of on-chain storage needed to store NFTs, resulting in reduced costs for creators and purchasers.
Solana claimed in a Thursday blog post that state compression can reduce storage costs by a factor of 100.
The procedure of creating and placing NFTs on the blockchain is referred to as minting. The process necessitates a quantity of digital storage space, which can be costly. State compression can make NFT minting more cost-effective for creators by minimizing the required storage space.
The Solana blockchain’s native cryptocurrency (SOL) was trading at $20.5 USD with little change following the announcement. The proxy indicator of the Solana NFT market, the Forkast SOL NFT Composite, also fell, by 0.28%.
Unfortunately for the Solana ecosystem, the introduction of a state compression solution coincides with many high-profile NFT projects abandoning the network. Recently, Degods and Y00ts migrated to Ethereum and Polygon, respectively.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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