In the rapidly evolving world of digital collectibles, Magic Eden, a renowned NFT marketplace, has thrown its support behind Solana’s compressed NFTs, commonly known as cNFTs. This comes as a strategic move to introduce a more cost-effective and scalable method for digital art enthusiasts.
CNFTs, setting themselves apart from standard Solana NFTs, have their data storage off-chain, making them more compressed. This attribute ensures that creating them in bulk becomes practical due to the reduced fees associated with minting.
Magic Eden holds the view that CNFTs are the perfect fit for industries intent on mass-producing digital collections. Fields such as gaming, the metaverse, music, and events stand to benefit immensely. They claim that this approach will enable creators to tap into broader audiences without incurring additional expenses.
Moreover, the NFT marketplace sees this as an opportunity to further the adoption of NFTs. By cutting down the minting costs, it offers an attractive proposition to newcomers in the world of digital collectibles. Users can indulge in the hobby without the fear of potentially losing a significant chunk of money.
The secret behind CNFT's cost efficiency lies in Solana's state compression technique. This feature allows for the minting of up to a million NFTs for a mere approximate of $110. In contrast, using platforms like Ethereum for minting can set creators back between $2.9 and over $30 for each NFT.
However, the off-chain hosting of NFTs isn’t devoid of hitches. Last year, some NFTs minted via the FTX crypto exchange malfunctioned, displaying empty images when the exchange faced financial troubles. This mishap was traced back to the usage of a Web2 API for hosting the NFTs rather than blockchain technology. The incident served as a stark reminder of the potential pitfalls of relying too heavily on Web2 platforms for NFT storage.