Magic Eden: cNFTs Have the Potential to Redefine the NFT Market
Magic Eden, the largest NFT trading platform on the Solana blockchain, has recently announced its support for Compressed NFTs (cNFTs) on Solana.
cNFTs are a unique form of NFTs on the Solana blockchain, and their biggest advantage lies in their significantly lower production costs compared to traditional NFTs.
This allows creators to produce content on a large scale without the need for significant investment, providing more room for experimentation and possibilities. cNFTs not only lower the entry barrier in the NFT space, making it easier for newcomers to experience the charm of NFTs, but also bring more vitality and inclusivity to the entire NFT market.
Magic Eden believes that cNFTs, due to their affordability and low risk, have the potential to introduce a new wave of NFT frenzy by making NFTs more accessible to a wider audience. They also express their hope to support creators and encourage them to innovate boldly through the support of cNFTs.
Why are cNFT production costs so low?
On the Solana blockchain, the production costs of cNFTs are extremely low, requiring less than $110 to mint up to 1 million NFTs. In comparison, the cost of minting a “single” traditional NFT on Ethereum ranges from $2.9 to $30, which is significantly higher.
This low-cost feature makes cNFTs highly popular in areas such as gaming, music, events, and the metaverse, where a large number of NFTs need to be produced.
Table of cNFT minting costs provided by Solana.
The operation behind cNFTs, also known as compressed NFTs, can be compared to a “compression machine” that compresses massive amounts of data into short codes.
This “compression machine” relies on an important cryptographic concept called a Merkle Tree, which is a computation method that adopts a tree-like structure. In other words, each leaf represents a piece of data, and these leaves ultimately converge into the trunk, forming a unified answer to ensure the integrity of the data.
cNFTs compress all the leaf data on this large tree into a small code called a “hash value,” saving space and greatly reducing production costs, making NFT creation more accessible.
A “hash value” can be seen as a special code that, although visible, cannot be directly interpreted into its original data, ensuring the security of the data.
Recent Developments from Magic Eden
Recently, Magic Eden has not only started supporting cNFTs but also launched the “Magic Eden Games” platform designed specifically for Web3 game developers to expand their community influence.
According to reports, Magic Eden has also created a dedicated marketplace called “Ordinals” for the NFTs “Bitcoin Ordinals” on Bitcoin. This allows users to conveniently issue NFTs on Bitcoin and became the first fully audited platform in the Bitcoin Ordinals ecosystem.
Another noteworthy update is that in February of this year, Magic Eden announced a 15% reduction in its internal operational team due to challenges in the global cryptocurrency market and business adjustments.
References:
Cointelegraph, Blockchain, CoinMarketCap
Proofread by Gao Jingyuan