ethereum-helius-labs-ceo/” rel=”nofollow”>Because MumtazCEO of Solana development platform Helius Labs recently shared “great news” that presents a bullish outlook for the ethereum/” rel=”nofollow”>solana ecosystem. This development could also positively impact the price of Solana, which has recently been in a downward trend.
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 the need for ethereum-l2s-sees-surge-in-uniswap-v2-pools/” rel=”nofollow”>layer 2 networks. He stated that this changes everything and every impression one has about Solana and scaling Layer 1 networks. Mumtaz explained in more detail what ZK compression is really about.
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He claimed that they have managed to compress the on-chain state for “10,000x scaling improvements,” which he says brings them one step closer to building the financial computer. He added that this means that developers Now they can “build and scale anything they want right in solarium without needing to leave it.”
Mumtaz also gave an example to highlight how significant this development was in terms of reducing transaction costs. He stated that it would typically cost more than $260,000 for a project to carry out an airdrop to 1 million users. However, ZK compression makes it much cheaper now as it will now only take $50 to launch these tokens to that million users.
Furthermore, on the technical side, Mumtaz highlighted that this is a very welcome development for Solana developers. He noted that assigning accounts, paying rent, and scaling with users has been a “big hurdle” for them, but that has now been fixed with this ZK compression.
ethereum-mev-bots-solana-has-succeeded/” rel=”nofollow”>Mumtaz He also highlighted how this opens the door to solarium to enjoy significant growth, noting that state growth has been a major issue in scaling blockchains. However, that will change now, as ZK compression allows the entire state of Solana to be compressed. The Helius CEO added: “This has additional implications for the hardware requirements and overall performance of the entire network.”
Mumtaz believes Solana has a “real opportunity in this cryptocurrency” when this ZK compression is combined with “firedancer, multiple concurrent leaders, asynchronous execution, and an ecosystem of thousands of incredibly cracked developers.”
Institutional investors also believe in Solana's potential
The introduction of ZK compression in Solana follows the ethereum/” rel=”nofollow”>recent prediction made by bitcoin-etf-years/” rel=”nofollow”>Pantera Capital analysts who solarium will steal a big chunk of the ethereum crypto market in terms of blockchain developer activity. These analysts highlighted Solana's “monolithic architecture,” which enables multiple 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 DRiP non-fungible (nft) platform.
Asset manager Franklin Templeton also previously predicted that Solana would become the largest crypto token by market capitalization thanks to the network's “superior technology.” They stated that Solana would house the sectors that will drive the next wave of cryptocurrency adoption and also alluded to the crypto-solana-validator-client-software/” rel=”nofollow”>fire dancer update as one of the reasons they are optimistic about Solana.
Featured image created with Dall.E, chart from Tradingview.com
