The Magic Touch: Solana's Compressed NFTs Find A Home On Magic Eden

The NFT marketplace, Magic Eden, has recently announced its endorsement of Solana’s compressed NFTs (cNFTs), providing users with a cost-effective and scalable option to own digital collectibles.

Magic Eden, an NFT marketplace argues that simplifying NFT production costs serves as a convenient entry point for newcomers to explore the world of NFTs.

Today we’re releasing support for cNFTs (find them in our popular collections) 🪄

cNFTs are a new wave of NFT creation only possible on Solana. The "c" stands for compressed (not Cardano don't worry) which allows them to be produced at a fraction of the cost of traditional… pic.twitter.com/WbO4qqWLEt
— Magic Eden 🪄 (@MagicEden) September 14, 2023

CNFTs stand apart from standard Solana NFTs because they can compress and store data off-chain. This unique feature results in lower minting fees and paves the way for more practical large-scale production.

According to Magic Eden, this particular variant of NFTs is considered ideal for creating extensive collections across various sectors, including gaming, music, events, and the metaverse. The NFT marketplace claims that it provides creators with the ability to expand their audience reach without incurring additional expenses.

cNFTs: Solana’s Budget-Friendly NFT Minting Revolution

The NFT marketplace aims to lower the costs associated with NFT production to encourage wider adoption and serve as an accessible entry point for newcomers interested in collecting NFTs. By reducing the financial barriers, individuals can explore and acquire NFT collections without risking significant funds. This approach effectively minimizes the potential loss of money when dealing with NFTs.

Within the {Solana blockchain’s realm, cNFTs harness the remarkable capabilities of Solana’s state compression. This outstanding feature empowers creators with the ability to produce up to one million NFTs, all at a mere cost of approximately $110.

However, in stark contrast, when minting NFTs on the Ethereum blockchain, expenses can range from $2.9 to over $30 per NFT. Highlighting the disparity in costs, opting for cNFTs presents a significant reduction in minting fees.

Although there are advantages to hosting NFTs off-chain, this approach can also bring challenges. In 2022, a significant incident occurred when NFTs minted on the cryptocurrency exchange FTX faced malfunctions that resulted in blank images.

Moreover, these issues arose as the exchange struggled with financial downfall. An engineer brought attention to the fact that these particular NFTs were hosted through a Web2 API rather than utilizing blockchain technology, emphasizing the importance of learning from such cases when considering off-chain hosting for NFTs.

“The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.”