TL; DR
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Earlier this week, Magic Eden (the Solana NFT marketplace) announced that it is supporting “compressed NFTs.”
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In short, they are NFTs that are 2,400-24,000x cheaper than traditional NFTs, thanks to the fact that their metadata (the image, title and description) is stored off-chain.
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While it can certainly reduce costs and therefore become more attractive to major players looking to enter this market, it does take away the entire selling point of ‘digital sustainability’.
Full story
Ever heard of compressed NFTs?
Yeah, neither.
But earlier this week, Magic Eden (the Solana NFT marketplace) announced it was backing them.
So, what exactly are they?
In short, they are NFTs that are 2,400-24,000x cheaper than traditional NFTs, thanks to the fact that their metadata (the image, title and description) is stored off-chain.
(And if it’s not stored on a blockchain, there are no storage fees associated with the chain).
The result? Users can create a boatload of NFTs for pennies on the dollar.
So what are some of the use cases? Think:
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Gaming companies looking to use NFTs as in-game assets for millions of players
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Music festivals looking to sell millions of tickets as NFTs
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Traditional companies that want to track goods in the supply chain
Our opinion on this?
While it can certainly reduce costs and therefore become more attractive to major players looking to enter this market, it does take away the entire selling point of ‘digital sustainability’.
It’s like getting a sandwich without filling. Technically it’s still a sandwich, but it’s just not the same.
So yes, we’re glad it’s an option, but we’re not rushing to take advantage of it.
We like our NFTs with all their metadata permanently intact, thank you very much.