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WHAT ARE COMPRESSED NFTS AND MINTING CNFTS
Understanding compressed NFTs
Compressed NFTs are a type of non-fungible token (NFT) designed to reduce the cost of storing and transacting with NFTs on the Solana blockchain.
With the increasing adoption of NFTs, developers face difficulties maximizing storage and lowering minting costs for these digital assets. The Solana blockchain introduced compressed NFTs (cNFTs) to overcome such challenges.
CNFTs are a newer type of non-fungible token that leverages state compression technology to store data more efficiently on Solana. Unlike traditional NFTs, which store all the token’s metadata directly onchain or via external links (like IPFS), cNFTs use Merkle trees to optimize data storage.
In simpler terms, while regular NFTs store individual ownership and metadata records for each token onchain, cNFTs group these records in a highly compressed format. This significantly reduces storage costs and improves transaction speeds.
Although the technology is still in its infancy, it accounts for most NFTs minted on Solana.
Did you know? In March 2023, Crossmint produced the first large-scale mint of compressed NFTs on Solana. Minting 300,000 NFTs the traditional way would cost over $74,000, but with state compression technology, Crossmint reduced this cost to less than $200!
Key features of compressed NFTs
With cNFTs, artists and developers can mint thousands, even millions, of tokens at a fraction of the cost of traditional NFTs, boosting innovation.
Let’s look at some key features and benefits of cNFTs:
Cost efficiency: Minting thousands of compressed NFTs costs only a fraction of what it would for regular NFTs. For instance, as per Solana’s report, about 24,000 SOL are needed to create and mint 1 million traditional NFTs utilizing the traditional metadata route. It is possible to organize cNFTs so that the same setup and mint cost 10 SOL or less. This implies that anyone utilizing NFTs on a large scale may use cNFTs instead of standard NFTs to reduce expenses by more than 1000x. Research by Helius shows cost comparison with and without compression NFTs, as seen below:
Scalability: Designed for high-volume use cases like gaming, social media and metaverse assets, where thousands or millions of tokens might be needed.
Onchain and offchain flexibility: While ownership is tracked onchain, much of the metadata can be stored offchain, further reducing costs without sacrificing utility.
Compressed NFTs offer several key benefits that stand out in the blockchain ecosystem. Their affordability significantly lowers minting and storage costs, enabling creators and businesses to access blockchain technology without financial barriers.
Additionally, cNFTs contribute to greener blockchain practices by reducing storage requirements and, consequently, energy usage. These attributes position cNFTs as a potential game-changer for scalable, eco-friendly and innovative applications.
Did you know? DRiP on Solana has distributed over 4 million free compressed NFTs, making it one of the most accessible NFT platforms for onboarding new users. This innovative approach allows artists to create and share digital art with minimal costs, reshaping how people experience NFTs.
Compressed NFTs vs regular NFTs
While both cNFTs and traditional NFTs aim to tokenize digital assets, their design and use cases differ significantly.
Traditional NFTs are known for their uniqueness and exclusivity, but their minting and storage costs can be prohibitively high for large-scale applications.
Compressed NFTs solve this problem by utilizing state compression, drastically reducing costs and enabling affordable mass production of tokens.
Unlike traditional NFTs, which often store all data onchain, cNFTs offload metadata to offchain systems, maintaining utility while minimizing blockchain storage needs.
Some key differences include:
Regular NFTs are best suited for high-value, one-of-a-kind digital art or collectibles.
Compressed NFTs, on the other hand, excel in scenarios that require high scalability, such as distributing gaming assets or digital collectibles to millions of users.
How to mint cNFTs: A step-by-step guide
CNFTs use state compression and Merkle trees to store data in a compact format.
Minting cNFTs may seem daunting at first, but with the right tools and knowledge, it’s a straightforward process to mint and distribute. While each platform will have its own instructions, here is a general guide to get started on cNFTs:
Step 1: Set up a wallet: Use a Solana-compatible wallet like Phantom or Solflare to manage your funds and interact with blockchain tools.
Step 2: Fund your wallet: Add SOL (Solana’s native cryptocurrency) to cover the cost of minting. CNFTs are highly cost-efficient, so even small amounts are sufficient.
Step 3: Select a minting platform: Platforms like Crossmint, Metaplex and Candy Machine (on Solana) support cNFTs. Based on your project’s scale and features, choose one.
Step 4: Prepare metadata: Define the details of your NFT collection, including artwork, descriptions, attributes and other metadata. Use offchain storage solutions like IPFS if needed.
Step 5: Mint your cNFTs and set up a Merkle tree: CNFTs use Merkle trees to organize data. Most minting platforms automate this process. Follow the platform’s interface to mint your compressed NFTs. Confirm transactions through your wallet, and voila — your cNFTs are live!
Where are compressed NFTs stored?
Unlike ordinary NFTs, in cNFTs, the Merkle root is stored onchain, and the Merkle leaves are stored offchain.
CNFTs leverage a hybrid storage model that balances onchain and offchain storage, ensuring cost efficiency and scalability. Ownership of cNFTs is always tracked onchain, ensuring the authenticity and provenance of the asset.
Still, much of the asset’s metadata, including images or detailed information, is typically stored offchain. This decentralized offchain storage often uses protocols like IPFS to ensure that the data is distributed and can be accessed by anyone.
This combination of onchain ownership with offchain metadata helps to reduce costs significantly, as storing large amounts of data directly on the blockchain can be expensive and inefficient.
In the case of Solana’s cNFTs, the metadata is compressed and stored in a way that drastically reduces the blockchain’s storage needs while maintaining the integrity of the asset’s information.
@ Newshounds News™
Source: CoinTelegraph
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@ Newshounds News™
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