Magic Eden, an NFT exchange, has declared that it would offer Solana’s cNFTs, or as they call it, compressed NFTs, a more affordable and scalable option for purchasing digital collectibles. Because of its data, which Magic Eden compressed and then stored off-chain, CNFTs are different from the typical Solana NFTs. Because they cost less to mint, manufacture in bigger quantities is, therefore, more practical. Magic Eden claims that this kind of nonfungible token is perfect for mass-producing collections in a variety of sectors, including music, gaming, events, as well as the metaverse. According to the NFT marketplace, this enables producers to reach larger audiences without having to spend more money.
Magic Eden’s Cost Of Minting Has Been Reduced Using cNFTs
The nonfungible token market also thinks that reducing the expenses associated with NFT manufacture, might perhaps encourage adoption and turn into an “easy point of access” for new individuals to attempt collecting NFTs. Users can gather NFTs at cheaper costs without having to invest a large sum of money to do so. It lessens the chance of financial loss while using NFTs.
Magic Eden’s state compression, which enables the creation of up to 1M NFTs with just over $110, powers CNFTs. The cost of minting is significantly reduced using cNFTs when compared to the cost of minting Ethereum NFTs, which may range from over $40 to $2.9 per NFT. While hosting nofungible tokens off-chain may have advantages, there are occasionally additional difficulties. NFTs that were issued on the defunct cryptocurrency exchange FTX in 2022 broke down as well as displayed blank graphics. The engineer highlighted that there is a teaching to be learned in hosting nonfungible tokens utilizing Web2 technology after pointing out that the NFTs were hosted utilizing a Web2 API rather than the blockchain.
