Mert MumtazCEO of Solana development platform Helius Labs recently shared “big news” that presents an optimistic outlook for the Solana Ecosystem. This development could also positively impact the price of Solana, which has recently been in a downtrend.
A new dawn for Solana
Mumtaz mentioned in an X (formerly Twitter) post that “ZK Compression” is being introduced directly into the Solana network without requiring layer 2 networks. He stated that this changes everything and every impression one has about Solana and the scaling of layer 1 networks. Mumtaz further explained what ZK compression is really about.
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He stated that they were able to compress the state of the network to achieve “10,000x scale improvements,” which he said brings them one step closer to building the financial computer. He added that this means that developers “Now they can build and scale whatever they want directly Solana without having to leave.”
Mumtaz also gave an example to highlight how significant this development was in terms of reducing transaction costs. He said it would typically cost more than $260,000 for a project to airdrop to 1 million users. However, ZK compression makes it much cheaper now, as only $50 will be needed to airdrop these tokens to these 1 million users.
Furthermore, on the technical side, Mumtaz highlighted how this is a very welcome development for Solana developers. He noted that allocating bills, paying rent and scaling with users has been a “huge hurdle” for them, but this has now been fixed with this ZK compression.
Mumtaz also highlighted how this opens the door to Solana to enjoy significant growth, noting that state growth has been a key issue for scaling blockchains. However, this should change now as ZK compression makes it possible to compress the entire Solana state. The Helius CEO added: “This has additional implications for hardware requirements and the overall performance of the entire network.”
Mumtaz believes Solana has a “real shot at this crypto thing” when this ZK compression is combined with “firedancer, multiple concurrent leaders, asynchronous execution, and insanely cracked ecosystem of thousands of developers.”
Institutional investors also believe in Solana’s potential
The introduction of ZK compression on Solana follows the recent forecast made by Pantera Capital analysts who Solana will steal a large share of the crypto market from Ethereum in terms of blockchain developer activity. These analysts highlighted Solana’s “monolithic architecture,” which allows for diverse use cases and user experiences.
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They added that Solana’s technology enables “compelling applications” and gave examples of crypto projects that have benefited from Solana’s capabilities, including the non-fungible (NFT) platform DRiP.
Asset manager Franklin Templeton also previously predicted that Solana would become the largest crypto token by market value thanks to the network’s “superior technology.” They claimed that Solana would host the industries that will drive the next wave of crypto adoption and also alluded to the firedancer update as one of the reasons they are bullish on Solana.
Featured image created with Dall.E, chart from Tradingview.com