Definition ∞ State Compression is a technique used in blockchain technology to reduce the amount of data that needs to be stored on-chain. It involves aggregating multiple pieces of state information into a more compact form, often using cryptographic methods like Merkle trees. This significantly lowers transaction costs and improves scalability.
Context ∞ State Compression is currently a focal point in discussions concerning the scalability of blockchains, particularly for applications requiring large numbers of individual data entries, such as NFTs. The implementation of state compression on networks like Solana aims to drastically reduce the costs associated with creating and managing digital assets, thereby facilitating broader adoption.
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