Compressed NFTs

    Introduction

    This analysis delves into the concept of Compressed NFTs on the Solana blockchain. Solana has introduced a groundbreaking method for minting tokens that significantly reduces the associated costs compared to Solana's previous standards and other blockchain networks. This innovation empowers creators to distribute more NFTs and explore intriguing use cases for their products.

    Drip Haus has made a remarkable impact by releasing an extensive collection of NFTs, including the highly sought-after Dialect sticker pack mints.

    To provide insights into this emerging trend on Solana, I have developed a dashboard that showcases the cost comparison between these products' minting expenses on Solana versus other protocols like Ethereum and Polygon.

    Firstly, I conducted a comparison between Compressed NFTs and Non-Compressed NFTs. Next, I examined the top-performing NFTs within the Solana ecosystem. By identifying these notable projects. Furthermore, I conducted a comparative analysis between the Solana and Ethereum blockchains.

    What are Compressed NFTs?

    Compressed NFTs are NFTs on Solana store their data in a Merkle tree structure where the Merkle root is on-chain in an account, and the Merkle leaves are stored in the Solana ledger (which is off-chain but subject to consensus) rather than fully on-chain like conventional NFTs. ‍

    As with ordinary NFTs, compressed NFTs are issued and confirmed on-chain. However, Solana RPC providers are used to store and handle data off-chain to minimize storage costs.

    Compressed NFTs use indexers to manage transaction data and facilitate data queries between RPCs and on-chain smart contracts. Existing smart contracts must be modified to interact with compressed NFTs. Alternatively, compressed NFTs may be decompressed to work with unmodified Solana programs.

    Method

    Bubblegum is the program within the Metaplex Protocol designed for creating and interacting with compressed Metaplex NFTs. These compressed NFTs leverage the security of on-chain Merkle trees. Upon investigating, I discovered the address for Bubblegum, which is BGUMAp9Gq7iTEuizy4pqaxsTyUCBK68MDfK752saRPUY. By analyzing transactions on Solscan and examining the Fact event table, I was able to locate the NFTs associated with this address. Unfortunately, I couldn't retrieve the names of these NFTs from the available tables. Consequently, I resorted to manually extracting the names of the top 60 NFTs on Solscan and hardcoded them into my queries.

    It's important to note that only the top 60 NFTs have identifiable names, while their addresses only represent the remaining NFTs.

    The fee amounts displayed on Solana charts are denominated in $SOL, except for the volume figures in the chain comparison tab, which are in USD.

    Remember that all the data on the charts pertain to March 9, 2023.

    For clarity, "Non-Compressed NFTs" refer to the previous version of NFTs available on various platforms.

    Note: The Helium Part is Credited to Jack the Guy. Also, Additionally, several NFTs do not have an associated address. Consequently, these NFTs will be labeled 'Other' instead of displaying their respective names. The 'Other' category comprises Helium, DRiP, and Dialect Collections.

    Overview
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