Mert Mumtaz, CEO of Solana’s development platform Helius Labs, recently shared “big news” that presents a bullish outlook for the Solana ecosystem. This development could also positively impact Solana’s price, which has recently been on a downtrend.
A Recent Dawn For Solana
Mumtaz mentioned in an X (formerly Twitter) post that “ZK compression” is being introduced directly on the Solana network without requiring layer-2 networks. He claimed that this changes all the pieces and each impression one has about Solana and scaling layer-1 networks. Mumtaz further explained what the ZK compression is de facto about.
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He stated that they’ve managed to compress the on-chain state to get “10,000x scale improvements,” which he claimed brings them one step closer to constructing the financial computer. He added that because of this developers can “now construct and scale anything they need directly on Solana without having to go away it.”
Mumtaz also gave an example to spotlight how significant this development was by way of a discount in transaction costs. He claimed that it could normally cost over $260,000 for a project to perform an airdrop to 1 million users. Nonetheless, ZK compression makes it way cheaper now as only $50 can be needed now to airdrop these tokens to those 1 million users.
Moreover, on the technical side, Mumtaz highlighted how it is a much-welcome development for Solana developers. He noted that allocating accounts, paying rent, and scaling with users has been a “massive roadblock” for them, but that has now been fixed with this ZK compression.
Mumtaz also highlighted how this opens the door for Solana to enjoy significant growth, noting that state growth has been a significant issue for scaling blockchains. Nonetheless, that is about to alter now as ZK compression makes it possible to compress all Solana state. The Helius CEO added, “This has further implications for hardware requirements and the general performance of your entire network.”
Mumtaz believes Solana has a “real shot at this crypto thing” when this ZK compression is combined with “firedancer, multiple concurrent leaders, async execution, and ecosystem of 1000’s of insanely cracked devs.”
Institutional Investors Also Consider In Solana’s Potential
The introduction of ZK compression on Solana follows the recent prediction made by Pantera Capital’s analysts that Solana will steal an enormous chunk of the crypto market from Ethereum by way of blockchain developer activity. These analysts highlighted Solana’s “monolithic architecture,” which enables several use cases and user experiences.
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They added that Solana’s technology enables “compelling applications” and gave examples of crypto projects which have benefitted from Solana’s capabilities, including the non-fungible (NFT) platform DRiP.
Asset manager Franklin Templeton also previously predicted that Solana would turn out to be the biggest crypto token by market cap because of the network’s “superior tech.” They claimed that Solana would host the sectors that may drive the subsequent wave of crypto adoption and likewise alluded to the firedancer update as certainly one of the explanations they’re bullish on Solana.
SOL price struggles below $130 | Source: SOLUSDT on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com