Magic Eden aims to lower the entry barrier for new NFT enthusiasts by offering compressed Solana NFTs, known as cNFTs, which are more affordable to mint.
Magic Eden, a prominent NFT marketplace, has recently announced its support for Solana’s compressed NFTs, or cNFTs. These cNFTs offer a more budget-friendly and scalable approach to digital collectible ownership. Unlike standard Solana NFTs, cNFTs have their data compressed and stored off-chain, making them more cost-effective to produce in large volumes.
According to Magic Eden, this form of NFT is particularly well-suited for mass-produced collections across various sectors, including gaming, music, events, and virtual worlds. The marketplace believes that this cost-effective approach allows creators to reach a broader audience without breaking the bank.
By lowering the financial barriers associated with NFT production, Magic Eden aims to encourage wider adoption and serve as an “easy entry point” for newcomers to the NFT space. With reduced costs, users can start collecting NFTs without risking significant capital, thereby minimizing potential financial losses.
Solana’s state compression technology powers these cNFTs, enabling the minting of up to one million NFTs for approximately $110. This is a stark contrast to Ethereum’s NFT minting costs, which can range from $2.9 to over $30 per NFT.
However, off-chain storage of NFTs isn’t without its challenges. In 2022, NFTs minted on the FTX cryptocurrency exchange failed and displayed blank images when the exchange went down. An engineer pointed out that these NFTs were hosted using Web2 API rather than blockchain technology, highlighting the need for caution when opting for off-chain NFT storage.