Understanding cNFTs (compressed NFTs) on Solana
In this guide, we’ll explore the new phenomenon of compressed NFTs, which makes minting on Solana scalable, efficient, and accessible for the mass market.
To put things in perspective, cNFTs could give a whole new purpose to non-fungibles tokens as we know it, and we’re excited to see where the new tech leads us next.
Let’s dive in, shall we?
If you’ve been in the space for some time now, you’ve probably seen everything NFTs have to offer: from art collections and profile picture projects to gaming tokens and collectibles. NFTs have generally been used to establish genuine digital ownership but now, as demand grows, technology that reduces the size of the data without compromising its quality or integrity is very much in demand for the next evolution.
When you make a compressed NFT (cNFT), all tokens are grouped into a single account. This is great for minting unique tokens, as they become one entity.
cNFTs are currently being used for two major reasons: Cost and distribution.
NFTs for every budget
If you're wondering about the cost benefits of cNFTs, a quick visit to https://compressed.app/ will show you just how budget-friendly it is to use compressed NFTs for large-scale distribution.
Distribution (en masse)
One exciting aspect of cNFTs is their ability to go beyond traditional NFT applications. With use cases ranging from high-volume ticketing platforms to loyalty rewards for web2 brands and various identity applications, cNFTs offer a world of possibilities.
A prime example of this is Underdog's cNFT minting UI- which provides a user-friendly interface, simplifying the minting process and contributing to the widespread adoption of compressed NFTs. The team's dedication, as seen in their minting UI, deserves recognition.
Case study: Drip Haus & Dialect with cNFTs
Drip, Dialect, and Helium are three pioneers in the NFT space who have successfully issued millions of cNFTs at minimal cost. This breakthrough highlights the true potential of compressed NFTs, making them an excellent choice for creators looking to distribute digital assets without high expenses.
Drip.haus grants collectors access to free weekly art drops. Users can collect Drip tokens and use their tokens to collect artists’ work into the hands of millions of art enthusiasts. Drip needed to find a cost-efficient way to deliver art en masse and cNFTs was the answer.
Helium, widely known for its decentralized wireless infrastructure, has embraced compressed NFTs for every hotspot.
This move not only emphasizes the efficiency of cNFTs but also showcases their versatility beyond traditional art and profile picture (PFP) use cases.
Looking forward to the future of cNFTs
Notably, cNFTs can be decompressed, converting them back into regular NFTs and individualizing each token into its account.
For cNFTs, their cost-effectiveness is notable. However, the decentralized nature of data storage on the ledger introduces complexity, limiting the development of intricate use-cases.
Envisioning the future, we at Builderz anticipate the emergence of multiple standards:
- cNFTs, optimized for large-scale distribution.
"Normal NFTs" (such as Normal Metaplex NFTs and pNFTs) with diverse functionalities. - Anticipation of a new NFT token standard from token22, offering enhanced token extensions for NFTs.
Additionally, there is a growing trend towards inscriptions. Similar to Bitcoin, this involves hosting metadata on-chain. While expensive to mint, this approach may find value in preserving on-chain storage for artworks, contracts, and similar entities
As the digital landscape continues to evolve, compressed NFTs emerge as a cost-effective and scalable solution, paving the way for new possibilities and applications.
Whether you're a creator, collector, or tech enthusiast, the rise of cNFTs is undoubtedly a trend worth exploring and embracing.