Magic Eden embraces Solana’s compressed NFTs (cNFTs)
In a recent announcement, the prominent NFT marketplace Magic Eden declared its integration of Solana’s compressed NFTs, also known as cNFTs. This move seeks to present a more economical and scalable option for digital collectible enthusiasts.
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cNFTs and why they matter
Differing from traditional NFTs, cNFTs have their data compressed and stored off-chain. This feature ensures that their minting in higher volumes is more practical due to the reduction in associated fees.
Magic Eden sees this NFT model as the perfect solution for generating mass-produced collections spanning various sectors. Industries such as gaming, music, events, and even the burgeoning metaverse could greatly benefit.
Magic Eden expects cNFTs to usher wider adoption
By championing these compressed tokens, the platform expects creators to access and engage with broader audiences, all without extra expenditure.
Moreover, Magic Eden emphasizes that the reduced costs associated with cNFT production could boost wider adoption. This affordable entry might entice newcomers to delve into the world of NFTs. Reduced prices mean users can immerse themselves in collecting without the anxiety of investing vast sums. Essentially, the financial risk of delving into NFTs is mitigated.
Solana’s state compression
A striking feature of cNFTs is their reliance on Solana’s state compression. This technology permits the minting of a staggering one million NFTs at an approximate cost of $110. In stark contrast, minting a single NFT on Ethereum can range from $2.9 to an exorbitant $30. Clearly, cNFTs present a much more economical alternative.
Off-chain hosting leads to centralization
Hosting NFTs off-chain can sometimes introduce unforeseen complications. A notable incident occurred in 2022 when NFTs minted on the FTX crypto exchange malfunctioned, displaying only blank images following the exchange’s bankruptcy.
A keen observer, an engineer, traced the issue back to the NFTs being hosted via a Web2 API as opposed to on the blockchain. This professional was quick to caution against the perils of relying on Web2 technology for NFT hosting, emphasizing the lessons to be learned from such technological mishaps.
Earlier in the year, Magic Eden also experienced a hiccup as it inadvertently showcased explicit content due to a hack in its hosting service. Many users were perplexed to see their NFT artworks replaced by sexual videos and images related to “The Big Bang Theory” sitcom.
In summary, while Magic Eden’s embrace of Solana’s cNFTs holds promise for more affordable and scalable digital collectibles, hosting content off-chain always brings the risk of files being tampered with or becoming unavailable, either temporarily or permanently.
