Storing Solana NFTs On Chain Just Got More Affordable

Exclusive: New state compression tech is driving down costs of Solana NFT transfers, a Solana Foundation exec told Blockworks

article-image

Vladimir Kazakov/Shutterstock modified by Blockworks

share

The Solana Foundation has teamed up with a handful of ecosystem partners to make it cheaper to store NFTs on the blockchain.

It costs roughly 1,200 SOL ( about $24,000) to store 1 million NFTs on Solana today, but state compression — a novel technology that uses Merkle trees — is set to drastically reduce the associated transaction costs to roughly four SOL (about $103).

State compression started after developers at Solana Labs and Metaplex wanted to facilitate gasless experiences for users on the Solana blockchain, Jon Wong, a technical lead on the ecosystem engineering team at the Solana Foundation, told Blockworks in an exclusive interview.  

Companies that could benefit from this type of technology include airdrop facilitators, as well as Web3 gaming developers who find it too expensive to build digital goods on a chain.

Wong in a separate statement described the technology as a “compression-friendly data structure” that “ allows developers to store 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.”

On- vs. off-chain NFT storage

NFTs that are hosted on-chain are given a unique identifier. 

On Solana, when you purchase an NFT, you have to pay for every byte stored on-chain, Wong said.

“How compression works is that it takes a large set of data and summarizes it into what is called a fingerprint using a data structure called Merkle tree,” he said.

Rather than having a bunch of NFT data on the blockchain, only a condensed version of the data is hosted on-chain in that arrangement. The remainder can be accessed off-chain through Solana remote procedure call (RPC) providers. ​​

If any of the individual values that are stored off-chain change, the value stored on the blockchain will also change.

It’s like a receipt to prove that you purchased an item, Wong said. Your purchase may not physically be in your house or apartment. It may sit in a storage center. But your receipt verifies you as the product’s honor. And you will still be able to buy and sell it in a marketplace.

“From a consumer’s perspective, nothing changes,” Wong said. “[It] shows up in your wallet, you can send it, transfer it, operate in smart contracts, put it on marketplaces. So, nothing changes there. We’re just storing it in a different way.”

Although the technology has been available on Solana mainnet for a few months, there had not yet been any RPC providers which were able to facilitate these queries until now. 

“Now is the moment that the circle has been completed,” Wong said. “People can create and transfer these NFTs…so from a consumer standpoint, they can now see and touch and feel these things in a way they weren’t able to before.”


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

AERODROME TEMPLATE.png

Research

Aerodrome is a "MetaDEX" that combines elements of various DEX primitives such as Uniswap V2 and V3, Curve, Convex, and Votium. Since its launch on Base, it has become the largest protocol by TVL with more than $495B in value locked, doubling Uniswap's Base deployment.

article-image

Thursday’s CPI report shows prices are coming down more quickly than analysts had anticipated, renewing hope that central bankers will cut rates in the fall

article-image

If we tokenize all assets in a speculative rush, the risk of creating illiquid markets and trapped value will manifest on a large scale

article-image

Plus, Trump is headed to the heart of Bitcoinlandia with a speaking appearance at the Bitcoin 2024 conference

article-image

Meanwhile, stocks rally after Jerome Powell finishes his Capitol Hill tour

article-image

Plus, Blinks have reshaped many people’s understanding of what blockchains are capable of

article-image

Franklin Templeton has the lowest intended ETH fund fee so far, though a similar advantage did not help it win the race for bitcoin ETF assets