Nonfungible token (NFT) marketplace Magic Eden has announced its support for Solana’s compressed NFTs (cNFTs), providing a cost-efficient and scalable alternative to owning digital collectibles. cNFTs are different from the usual Solana NFTs because their data are compressed and stored off-chain, allowing for easier production in larger quantities and lower fees for minting. Magic Eden believes that cNFTs are ideal for mass-produced collections in various industries such as gaming, music, events, and the metaverse, enabling creators to reach wider audiences without additional costs.
Lowering the costs of NFT production can potentially promote adoption and serve as an “easy access point” for new collectors. It reduces the risk of losing funds over NFTs and allows users to collect without substantial financial investment. cNFTs are powered by Solana’s state compression feature, enabling the minting of up to 1 million NFTs for around $110. In comparison, minting NFTs on Ethereum can cost anywhere from $2.9 to over $30 per NFT, making cNFTs a more affordable option.
While hosting NFTs off-chain offers benefits, it can also present challenges. In 2022, NFTs minted on the crypto exchange FTX experienced issues, displaying blank images when the exchange went bankrupt. An engineer highlighted the use of Web2 API hosting instead of the blockchain and emphasized the importance of hosting NFTs using blockchain technology.
It is crucial to consider the implications of Web2 hosting flaws when dealing with NFTs. By leveraging Solana’s compressed NFTs, Magic Eden aims to provide a reliable marketplace for collectors and creators alike.
Sources:
– Learn more about compressed Solana NFTs: [Solana – Compressed NFTs](https://solana.com/news/how-to-use-compressed-nfts-on-solana)
– Read about state compression for cNFTs on Solana: [Solana – State Compression for Compressed NFTs](https://solana.com/news/state-compression-compressed-nfts-solana)
– Understand the risks of Web2 hosting for NFTs: [Cointelegraph – NFTs Minted on FTX Break Highlighting Web2 Hosting Flaws](https://cointelegraph.com/news/nfts-minted-on-ftx-break-highlighting-web2-hosting-flaws/amp)
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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