Magic Eden: cNFT has the potential to redefine the NFT market
Magic Eden, the largest NFT trading platform on the Solana blockchain, has officially announced its support for Compressed NFTs (cNFTs) on Solana.
cNFTs are a unique form of NFTs on the Solana blockchain, with the biggest advantage being significantly lower production costs compared to traditional NFTs.
This allows creators to produce content on a large scale without incurring huge costs, 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 inclusiveness to the entire NFT market.
Magic Eden believes that cNFTs, due to their affordability and lower risks, can allow more people to access NFTs and potentially trigger a new wave of NFT frenzy. 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 cost of cNFTs is extremely low, with less than $110 being able 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 characteristic makes cNFTs highly popular in fields such as gaming, music, events, and the metaverse where large-scale production of NFTs is needed.
Table of cNFT minting costs provided by Solana.
The operation of cNFTs, known as compressed NFTs, on Solana is like a “compressor” that compresses massive data into short codes.
This “compressor” leverages an important concept in cryptography called Merkle Tree, which is a computational method using a tree structure. In other words, each leaf represents a piece of data, and these leaves eventually converge on the trunk to form a unified answer, ensuring the integrity of the data.
cNFTs compress all the leaf data on this big tree into a small code called a “hash value,” which not only saves space but also significantly reduces production costs, making NFT production more accessible.
A “hash value” can be seen as a special code that is visible but cannot be directly interpreted into its original data, ensuring data security.
Recent developments from Magic Eden
Recently, Magic Eden has not only started supporting cNFTs but also launched “Magic Eden Games,” a platform designed specifically for Web3 game developers to expand their community influence.
According to reports, Magic Eden has also introduced a dedicated marketplace called “Ordinals” for Bitcoin NFTs called “Bitcoin Ordinals.” This allows users to conveniently issue NFTs on Bitcoin and becomes the first fully audited platform in the Bitcoin Ordinals ecosystem.
It is also worth noting that in February of this year, Magic Eden announced a 15% reduction in its internal operations team due to the challenges in the global cryptocurrency market and the company’s business adjustments.
References:
Cointelegraph, Blockchain, CoinMarketCap
Proofread and edited by: Gao Jingyuan
