Solana’s New Tools and ZK Compression Propel SOL Towards Major Price Milestones

  • In a significant move for blockchain integration, the Solana Foundation recently unveiled two innovative tools for Web3 mainstream adoption.
  • The introduction of “Actions” and “Blockchain Links” (Blinks) aims to streamline blockchain functionalities for developers on websites and social media platforms.
  • These advancements are part of Solana’s broader efforts to enhance network efficiency and reduce transaction costs, marking notable progress in the ecosystem.

Discover how Solana’s latest tools “Actions” and “Blockchain Links” are bridging the gap between traditional web applications and blockchain technology, enhancing transaction efficiency.

Seamless Web3 Transactions

“Actions,” one of Solana’s newly launched tools, empowers users to perform Web3-native transactions such as asset transfers, NFT interactions, voting, betting, and tipping content creators with ease.

Paired with Actions, “Blinks” allows developers to create shareable links for any Action, turning websites and social media platforms into gateways for blockchain interactions.

These tools serve as a crucial link between conventional web applications and decentralized finance (DeFi), facilitating the smoother integration of blockchain capabilities into everyday digital user experiences.

Optimizing Transaction Costs

The implementation of Light Protocol and Helius Labs’ testnet for ZK Compression on the Solana network is another significant stride forward. ZK Compression employs zero-knowledge proofs and call data to significantly reduce transaction costs.

This reduction is achieved by minimizing the amount of on-chain data stored, which in turn lowers the computational demand of Solana transactions. According to Mert Mumtaz, CEO of Helius Labs, ZK Compression has the potential to drastically cut the cost of large-scale airdrops, exemplified by reducing the cost of distributing tokens to a million users from $260,000 to just $50.

“Example cost difference: take an airdrop to 1,000,000 users. This today would cost over $260,000 for state alone. Now, it’s $50 — 5,200x cheaper. But a token account is just one example of this — *everything* on Solana is an account, meaning everything can be scaled.”

ZK Compression on Solana

Despite receiving accolades for its cost-efficiency, some critics from the Ethereum community argue that ZK Compression functions similarly to a Layer 2 (L2) solution, which contradicts Solana’s anti-L2 stance.

Critics like Adam Cochran, VP of Operations at SBT Partners, have stated that ZK Compression operates as a Layer 2 feature or a validity-based rollup. In contrast, Solana’s co-founder Anatoly Yakovenko has defended the tool, emphasizing its divergence from typical Ethereum-based L2 solutions.

Yakovenko highlighted that ZK Compression avoids issues associated with security council multisigs, chain ID switches, governance tokens, and external sequencers while ensuring that Solana validators still receive transaction fees.

SOL Price Analysis

Recently, SOL witnessed a brief price dip to $122, but a quick analysis by the crypto analyst known as “Skew A” showed a significant recovery, outperforming other major tokens.

Analyzing SOL’s 4-hour chart, “Skew A” noted crucial factors influencing SOL’s potential upward trajectory. Firstly, the token’s movement above the 1-day 200MA (Moving Average) indicates a bullish trend, as it suggests the current price is above the average of the past 200 days.

To confirm this trend, the token would need to establish higher highs (HH) beyond $150. As of now, SOL has gained approximately 9% over the last 24 hours, trading at $138. This recovery sets the foundation for SOL to challenge major resistance levels at $150, $162, $174, and $186 before potentially crossing the $200 threshold.

Achieving these milestones will be critical for SOL as it continues to capitalize on positive momentum and developments within the Solana ecosystem.

Conclusion

The recent initiatives by the Solana Foundation, including “Actions,” “Blinks,” and ZK Compression, reflect a concerted effort to bridge traditional web interfaces with blockchain technology. These tools not only highlight Solana’s commitment to reducing transaction costs and enhancing network efficiency but also underscore its innovative approach to blockchain integration. As SOL continues to demonstrate a robust recovery, the future appears promising for further advancements in the Solana ecosystem.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.
spot_imgspot_imgspot_imgspot_img

Latest News

Hillary Clinton Eyed as Potential Successor Should Joe Biden Exit Presidential Race

As discussions circulate about President...

FLOKI Price Surge Predicted: Bullish Pattern and 60% Gain Potential

FLOKI token demonstrates a promising short-term bullish...

Citigroup Leads with $2.28 Billion in Losses Amid Rising Consumer Debt in Q2 2024

Major US banks are currently facing substantial...

Wells Fargo Executive Banned from Banking for $47k Misappropriation Scheme

A Wells Fargo executive has been forced...
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Dogecoin Leads the Pack: 2024’s Top Dog-Themed Meme Coin Performance Analysis

In 2024, dog-themed meme coins such as...

XRP Price Analysis: Whale Transactions and Technical Outlook Hint at Bullish Potential

XRP, the cryptocurrency developed by Ripple, has...

Bitcoin Market Analysis: BTC and Altcoins See Significant Declines (July 19)

Amid recent market turbulence, Bitcoin and other...

XRP Price Analysis: Key Support Holds at $0.54 Amid Pullback

Cryptocurrency XRP has recently surged by...
Lucien Renard
Lucien Renardhttps://en.coinotag.com/
Lucien Renard is a 24-year-old writer specializing in cryptocurrency analysis and price action. With a focus on technical analysis, Lucien provides valuable insights into market trends and potential opportunities for investors.
spot_imgspot_imgspot_imgspot_img

Hillary Clinton Eyed as Potential Successor Should Joe Biden Exit Presidential Race

As discussions circulate about President Joe Biden potentially stepping down from the electoral race, speculation abounds regarding his potential successor. ...

FLOKI Price Surge Predicted: Bullish Pattern and 60% Gain Potential

FLOKI token demonstrates a promising short-term bullish trend as it surpasses its June resistance level. On-chain metrics indicate a favorable long-term...

Citigroup Leads with $2.28 Billion in Losses Amid Rising Consumer Debt in Q2 2024

Major US banks are currently facing substantial financial losses due to an increasing amount of unpaid debts. Citigroup, Bank of America,...