Solana
Solana Exec explains how ZK compression reduces on-chain storage costs by 99%
In a significant breakthrough for blockchain technology, head of strategy at Solana, Austin Federa, weighed in on a new feature called ZK Compression. This innovative development promises to significantly reduce the cost of storing on-chain accounts. Therefore, it addresses one of the main challenges facing institutions and mainstream applications.
Solana Dev highlights the financial benefits of ZK compression
“Compression on Solana solves one of the biggest problems faced by institutions and consumer applications: the cost of storing accounts on-chain,” Federa said. The high cost of storing data on blockchain poses a major obstacle for companies seeking to leverage blockchain technology for large-scale applications. So, with ZK Compression, these costs are reduced, making it possible to onboard millions of users on the blockchain.
Additionally, Federa highlighted the considerable savings achieved through widespread compression. For example, creating a 100-byte PDA account typically costs around 0.0016 SOL. With ZK Compression, this cost drops to around 0.00001 SOL, making it 160 times cheaper. Likewise, the cost of creating 100 token accounts drops from around 0.2 SOL to just 0.00004 SOL, a 5,000x reduction.
Furthermore, these cost reductions are not just theoretical. Federa highlighted the practical implications for businesses. THE Solana The executive explained: “If you are a company that wants to on-chain 450 million users with tokens, it could cost tens of millions of dollars to reserve that account space. Thanks to the across-the-board compression, that cost is now only about $25,000. This dramatic drop in costs opens up new possibilities for large-scale adoption of blockchain.
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Other features of ZK compression
ZK Compression is not just about cost savings. It also maintains the high security and performance standards of the Solana blockchain. Additionally, compressed data is securely stored on cheaper registry space, while execution and data availability remains on Solana’s L1. This ensures that users experience the same level of security and performance as before.
Through ZK Compression On Solana, developers and users can significantly reduce on-chain storage costs by compressing their reserves. In addition, this approach preserves the security, performance and composability of the Solana Diaper 1
blockchain. This flexibility allows developers to choose between regular and compressed on-chain states.
Therefore, it allows seamless interaction with multiple programs, accounts and compressed accounts. The development of ZK Compression demonstrates the spirit of collaboration within the Solana ecosystem. Federa emphasized that the project brought together Light Protocol and Helius Labs, two entities with different initial directions.
He wrote: “Launching widespread compression on Solana is a case study for supporting world-class founders, no matter what they are building at that time. Light Protocol started as a privacy layer on Solana, Helius Labs an RPC provider. I think two years ago it would have been pretty hard to predict that they would collaborate to build something like this.
Light Protocol, in its announcement on X, highlighted the transformative potential of this new technology. They noted: “Today we are launching the next generation of Light. In collaboration with Helius Labs. At its core, a new primitive: tokens and accounts: orders of magnitude cheaper, while still allowing native ZK calculation on Solana. We call it: ZK Compression. »