Vanar Chain, a layer-1 blockchain network, has launched a new artificial intelligence-powered compression and data authentication layer designed to address the industry’s longstanding issue with onchain storage.
Vanar Chain is launching Neutron, an <a href="https://cointelegraph.com/learn/articles/ai" rel="noopener noreferrer nofollow" target="null">AI-native</a> blockchain layer with data compression ratios of up to 500:1, which can reduce a standard 25 megabyte file to just 50 kilobytes, transforming it into a “Neutron Seed” that can be stored on the blockchain ledger.
The new blockchain compression layer aims to solve the industry’s data storage issue, with traditional blockchains lacking the capacity to store data, only to reference it.
This design introduces potential single points of failure. Vanar's Neutron aims to solve this by enabling fully onchain, verifiable data storage.
Neutron is a “world first” which “handles both physical file compression and semantic compression, meaning it compresses not just the file itself but the meaning inside it,” Jawad Ashraf, CEO of Vanar Chain, told Cointelegraph:
<blockquote>
 “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.”
</blockquote>
“It finally delivers on one of blockchain’s biggest promises: trustless, verifiable data, made truly accessible,” he added.
<figure><img src="https://s3.cointelegraph.com/uploads/2025-04/0196862e-7a76-78e0-93ba-d85a521d1934" title="" alt="Vanar Chain tackles AWS-style outages with AI-powered data storage">
 <figcaption style="text-align: center;">Vanar introduces Neutron. Source: Vanar Chain
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“For solutions like Nuklai’s Nexus, this is an important evolution,” according to Matthijs de Vries, CEO of Nuklai, a blockchain layer 1 and collaborative data marketplace for AI development and <a href="https://cointelegraph.com/news/large-language-models" rel="noopener noreferrer nofollow" target="null">large language models</a>.
“It enables us to work directly with fully onchain, trustless data streams, minimizing external dependencies and unlocking much deeper, verifiable intelligence extraction,” de Vries added.
The Neutron launch follows several high-profile incidents highlighting risks in centralized infrastructure.<a href="https://cointelegraph.com/news/binance-kucoin-mexc-aws-outage-crypto-service-issues" rel="noopener noreferrer nofollow" target="_self"> On April 15, a major outage at Amazon Web Services (AWS</a>) disrupted operations at major <a href="https://cointelegraph.com/learn/articles/centralized-vs-decentralized-crypto-exchanges" rel="noopener noreferrer nofollow" target="_self">centralized exchanges</a>, including Binance, KuCoin and MEXC.
Just days later, on April 24, over 20,000 CloneX NFTs created by RTFKT Studios temporarily disappeared due to what was believed to be a Cloudflare-related issue.
<a href="https://cointelegraph.com/news/nike-class-suit-over-shutdown-nft-platform-rtfkt" rel="noopener noreferrer nofollow" target="null">Nike was hit</a> by a class-action lawsuit of $5 million on April 25 after a group of RTFKT users led by Jagdeep Cheema claimed that they suffered “significant damages” as a result of Nike touting its <a href="https://cointelegraph.com/learn/articles/what-are-nfts-and-why-are-they-revolutionizing-the-art-world" rel="noopener noreferrer nofollow" target="null">sneaker-themed NFTs</a> to gain investors before shuttering the platform.
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<h2 id="onchain-storage-can-address-centralized-vulnerabilities">Onchain storage can address centralized vulnerabilities</h2>
Vanar’s new blockchain storage solutions can address the centralization vulnerabilities of the industry, according to Vanar Chain’s CEO.
“What happened with Nike’s NFTs and the AWS outage shows the risk: if the server fails, the asset effectively disappears,” Ashraf said, adding:
<blockquote>
 “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.’”
</blockquote>
Neutron’s capabilities are designed to fortify numerous blockchain segments, including adding memory to AI agents, adding verifiable file attachments for decentralized finance applications, uploading original documents to tokenized <a href="https://cointelegraph.com/news/real-estate-tokenization-forecast-4-trillion-2035" rel="noopener noreferrer nofollow" target="null">real-world assets</a>, or adding immutable governance records to <a href="https://cointelegraph.com/learn/articles/what-is-a-dao" rel="noopener noreferrer nofollow" target="null">decentralized autonomous organizations</a>.<iframe width="100%" height="315" src="https://www.youtube.com/embed/suMyYsRjVzM?start=" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen loading="lazy" sandbox="allow-scripts allow-same-origin allow-popups allow-forms"></iframe>
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Vanar Chain tackles AWS-style outages with AI-powered data storage

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