Compressed Account

A compressed account is a Solana account whose state is stored as a leaf in an on-chain Concurrent Merkle Tree rather than as a dedicated on-chain account, making it 100–1,000x cheaper to create and maintain because no rent-exempt lamport balance is required per account. Compressed accounts are identified by a hash of their data and position in the tree; to interact with one, a client must supply a Merkle proof (or rely on the canopy) showing the leaf is part of the current tree root, which the on-chain program verifies before processing the state change. Light Protocol's compressed account model supports arbitrary data, discriminators, and owner programs, making it a general-purpose replacement for expensive on-chain accounts in high-volume use cases.