Light Protocol: ZK compression technology reduces the cost of storing compressed token accounts by 5,000 times for developers

Solana ecosystem developer Light Protocol and Helius Labs announced a new scaling method for Solana-based applications using "ZK Compression" technology. ZK Compression works through a process of state compression, allowing developers to use cheaper ledger space on Solana to store certain types of data. According to the ZK Compression documentation, the "hash" or fingerprint of off-chain data is stored on-chain for verification using "sparse state trees." Light Protocol claims that ZK Compression will allow developers to store 100 compressed token accounts for approximately 1/400,000th of the cost (usually around 0.2 SOL), reducing costs by 5,000 times. The document shows that compressed PDA accounts can be up to 160 times cheaper. The protocol uses small zero-knowledge proofs (validity proofs) to ensure the integrity of the compressed state. Yesterday, Mert Mumtaz, CEO of Solana ecosystem development platform Helius, announced in a post on X that the team is introducing ZK Compression to Solana directly on L1 without the need for L2. This will greatly enhance Solana's network scalability, allowing developers to build and expand directly on the chain without leaving it. It will also significantly reduce costs, such as the current cost of airdropping to 1 million users, which is expected to exceed $260,000, but could be reduced to $50 with the introduction of ZK Compression, a reduction of 5,200 times.