Improving the convenience of Solana
The crypto asset (virtual currency) Solana (SOL) project announced on the 6th a new technology “State Compression” used for data storage.
One of the use cases introduced is the large-scale issuance of NFTs. Issuing 1 million NFTs on the Solana blockchain normally costs about 32.9 million yen ($250,000) as of May 5, but using State Compression costs about 14,400 yen ($110). It is said that it will be finished. The announcement explained that the cost of issuing NFTs can be reduced by 2,400 to 24,000 times.
1/ Solana’s low fees have made it an industry leader. But thanks to a recent innovation from teams across the ecosystem, it’s about to cost even less.
Introducing state compression, a new way to store data on Solana that lowers cost significantly. https://t.co/0baMJ0vOn1
— Solana (@solana) April 6, 2023
connection: “NFT as a national growth strategy” Interview with Liberal Democratic Party Digital Society Promotion Headquarters Masaaki Taira
The image below is a comparison chart from this announcement. Based on the number of NFTs issued, we compare the cost of issuing NFTs using the Solana, Ethereum (ETH), and Polygon (MATIC) blockchains and using State Compression. The price of each virtual currency is based on the price as of the 5th.
Currently, explanations are based on content related to NFTs, but State Compression can be used for any data stored on the Solana blockchain. Several projects, including the wireless communication network project “Helium” and the Web3 blogging platform “Wordcel,” have already introduced State Compression’s technology.
connection: Helium, aiming for decentralized 5G network, to move to Solana
Solana’s official website not only publishes this announcement, but also publishes a page explaining how to use it in NFT.
How State Compression works
State Compression uses a “Merkle Tree” technique to summarize and validate data. By adopting a Merkle tree data structure, the amount of data stored on the blockchain can be reduced, greatly reducing storage costs. However, the security and decentralization of the Solana blockchain will not be compromised.
What is a Merkle Tree
A data structure used when verifying a large amount of data in a summarized state, instead of verifying it one by one, by gradually summarizing it using a hash function. It was invented in 1979 by Ralph Merkle, one of the inventors of public-key cryptography.
Developers from Solana Labs and Metaplex, Solana Foundation, Phantom and other projects cooperated in the development. He explained that with the introduction of State Compression, it is possible to greatly improve the scalability of the Web3 experience.
connection: About 5.3 billion yen invested in Solana’s NFT infrastructure “Metaplex” such as Michael Jordan