Vanar Chain Launches AI-powered Compression Layer for Blockchain Storage

Vanar Chain Launches Neutron: AI-Powered Blockchain Compression to Solve Data Centralization Issues

  • Vanar Chain has launched Neutron, an AI-powered blockchain compression layer capable of 500:1 data compression ratios for onchain storage.
  • Neutron addresses blockchain’s traditional inability to store data directly by compressing both files and their semantic meaning.
  • The technology aims to solve centralization vulnerabilities highlighted by recent incidents like AWS outages and NFT disappearances.

Vanar Chain has unveiled Neutron, a groundbreaking Artificial Intelligence-powered compression layer designed to revolutionize onchain data storage. This new technology achieves compression ratios of up to 500:1, allowing a standard 25MB file to be reduced to just 50KB and stored directly on the blockchain as a “Neutron Seed.”

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Traditional blockchains have historically lacked the capacity to store data directly, instead only referencing it externally. This limitation introduces potential single points of failure that Neutron aims to eliminate by enabling fully onchain, verifiable data storage.

“This unlocks entirely new possibilities: from simply storing a file fully on-chain without relying on third parties, to querying and verifying the actual information inside the file,” explained Jawad Ashraf, CEO of Vanar Chain. “It finally delivers on one of blockchain’s biggest promises: trustless, verifiable data, made truly accessible.”

Neutron performs both physical file compression and semantic compression, meaning it compresses not just the file itself but also the meaning contained within it. Matthijs de Vries, CEO of Nuklai, described this as “an important evolution” that “enables us to work directly with fully onchain, trustless data streams, minimizing external dependencies and unlocking much deeper, verifiable intelligence extraction.”

Recent Incidents Highlight Need for Decentralized Storage

The launch follows several high-profile incidents demonstrating the risks of centralized infrastructure. On April 15, a major Amazon Web Services (AWS) outage disrupted operations at exchanges including Binance, KuCoin, and MEXC. Later, on April 24, over 20,000 CloneX NFTs created by RTFKT Studios temporarily vanished due to what appeared to be a Cloudflare-related issue.

These incidents culminated in a $5 million class-action lawsuit against Nike on April 25, after RTFKT users claimed they suffered “significant damages” when Nike allegedly promoted its NFTs to investors before shuttering the platform.

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Transforming Digital Asset Ownership

Ashraf emphasized how Neutron addresses these vulnerabilities: “What happened with Nike’s NFTs and the AWS outage shows the risk: if the server fails, the asset effectively disappears. By embedding the data itself, or even the meaning of the data, into the blockchain, assets become truly trustless, permanent, and verifiable without depending on third parties. It’s a foundational shift from ‘hosted ownership’ to ‘real ownership.'”

Neutron’s capabilities are expected to strengthen multiple blockchain segments, including enhancing memory for AI agents, enabling verifiable file attachments for DeFi applications, supporting document uploads for tokenized real-world assets, and providing immutable governance records for decentralized autonomous organizations.

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