Compressed NFTs

Definition ∞ Compressed NFTs represent non-fungible tokens that use advanced data storage techniques to reduce their on-chain footprint and associated transaction costs. Instead of storing all metadata directly on the blockchain, only a cryptographic proof or reference is kept, with the actual data stored off-chain. This method significantly lowers minting and transfer fees, making large-scale NFT distributions more economically viable. It aims to broaden accessibility and utility for digital collectibles.
Context ∞ Discussions around compressed NFTs often highlight their potential to scale digital asset markets, particularly for applications requiring many tokens like gaming or loyalty programs. News reports address the trade-offs between full on-chain storage and the cost efficiencies of compression. The security and immutability of off-chain data storage solutions remain a central point of consideration.