SNEAK PEEK
- Magic Eden, a top NFT marketplace, is backing Solana’s compressed NFTs.
- Unlike standard Solana NFTs, cNFTs compress data and store it off-chain, facilitating mass production and reducing minting fees.
- Magic Eden highlights the advantages of cNFTs for sectors like gaming, music, events, and the metaverse.
Magic Eden, a leading NFT marketplace, has announced its support for Solana’s compressed NFTs, commonly known as cNFTs. This innovative approach aims to offer a more cost-efficient and scalable alternative for digital collectible enthusiasts.
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
Unlike traditional Solana NFTs, cNFTs have their data compressed and stored off-chain. Consequently, this makes mass production more feasible. Moreover, it dramatically reduces the fees associated with minting these digital assets. According to Magic Eden, this feature is particularly beneficial for industries like gaming, music, events, and the metaverse, where large-scale collections are common.
Additionally, Magic Eden believes that cNFTs could serve as an “easy access point” for newcomers to the world of digital collectibles. With lower costs, the risk associated with acquiring NFT collections diminishes, encouraging wider participation. Hence, the marketplace sees this as an opportunity to foster greater adoption of NFTs among the masses.
Significantly, cNFTs leverage Solana’s state compression technology. This allows for the minting of up to 1 million NFTs for approximately $110. In contrast, minting a single NFT on Ethereum can cost anywhere from $2.9 to over $30. Therefore, the cost-efficiency of cNFTs is evident.
However, it’s crucial to note that hosting NFTs off-chain is not without challenges. In 2022, NFTs minted on the crypto exchange FTX faced issues when the exchange went bankrupt. The NFTs displayed blank images, leading an engineer to point out the risks of using Web2 API technology for hosting NFTs instead of blockchain. This serves as a cautionary tale for the industry.
Magic Eden’s decision to support Solana’s cNFTs marks a noteworthy development in the NFT space. While it promises cost-efficiency and scalability, it also calls for mindful implementation to avoid potential pitfalls. As the digital collectibles market continues to mature, innovations like cNFTs could play a pivotal role in shaping its future.
