- Dialect, a blockchain-based messaging service has rapidly garnered popularity on the Solana blockchain by capitalizing on the platform’s NFT compression capabilities.
- Solana (SOL) is currently trading at $18.62, with a 24-hour decline of 7.01 percent.
Solana implemented “state compression” on June 6 to enhance the storage of on-chain data, aiming for a more cost-effective and revolutionary solution. Solana introduced state compression by utilizing a prominent data structure utilizing Merkle Trees at its core.
In a Twitter thread, Solana stated that during the trial run of state compression, they achieved an impressive reduction in NFT minting costs ranging from 2,400 to 24,000 times. Currently, minting 1 million uncompressed NFTs on Solana costs approximately $250,000, but using compressed NFTs is expected to reduce this expense to $110.
1/ Solana’s low fees have made it an industry leader. But thanks to a recent innovation from teams across the ecosystem, it’s about to cost even less.
Introducing state compression, a new way to store data on Solana that lowers cost significantly. https://t.co/0baMJ0vOn1
— Solana (@solana) April 6, 2023
Developers can leverage state compression to employ the Merkle tree methodology for storing minimal data on the Solana blockchain, allowing for real-time modifications on the ledger. Additionally, this technique empowers developers to decrease the costs linked to data storage. During the initial trial phase, several platforms on Solana are testing their services and offerings using state compression.
One such platform is Crossmint, a company specializing in NFT and API tools, is utilizing state compression to establish connections that improve customer loyalty for international enterprises. Additionally, various other projects based on Solana, including Helium, DRiP, and Wordcel, are integrating state compression into their platforms to enhance the user experience.
Solana has collaborated with Metaplex, Helius, Triton, SimpleHash, Phantom, and Solflare to implement this new feature.
Rapid Popularity of Dialect on the Solana Blockchain
Another platform that utilizes state compression is Dialect. This blockchain-based messaging service uses state compression for compressed NFTs to offset the minting expenses of NFT stickers for numerous users. Dialect employs compressed NFTs, a novel NFT variant enabled by state compression, to significantly reduce minting costs and facilitate users’ widespread sharing of NFT stickers.
Moreover, this addresses a significant challenge NFT enthusiasts face, as it renders the already low minting costs on Solana nearly negligible. Consequently, web3 experiences become more scalable for businesses due to the increased affordability of NFT minting.
In a tweet, Messari, a leading provider of crypto market intelligence products in the world of cryptocurrency, said that Dialect has rapidly garnered popularity on the Solana blockchain by capitalizing on the platform’s NFT compression capabilities.
With a high retention rate and new partnerships, Dialect showcases the potential for consumer applications within the Solana ecosystem. pic.twitter.com/Duo4fO5utK
— Messari (@MessariCrypto) June 6, 2023
They further added that this success is evident through its substantial user retention and the establishment of new partnerships, demonstrating the immense potential for consumer applications within the Solana ecosystem.
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SOL Price Analysis
Solana (SOL) is currently trading at $18.62, with a 24-hour decline of 7.01 percent. Additionally, the market capitalization of SOL is down by 0.54 percent. The market cap is currently at $7.41B. Also, in the past 24 hours, the total volume of the token is $406M and is currently down by 6.77 percent in the last 24 hours.
Solana has declined in the last few days with a price performance of ‑12.3 percent in the last five days, ‑14.1 percent over the previous month, +40.7 percent in the last six months, and ‑52.7 percent in the last year.
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