If you thought storing your entire music library on an iPod was cool, you haven't seen anything yet.  Researchers at North Carolina State University have developed a computer chip that can store an entire library's worth of information on a single chip.

The new chip stems from a breakthrough in the use of nanodots, or nanoscale magnets, and represents a significant advance in computer-memory technology, researchers say.

Nanodots are made of single, defect-free crystals, creating magnetic sensors that are integrated directly into a silicon electronic chip. These nanodots, which can be made uniformly as small as six nanometers in diameter, are all precisely oriented in the same way – allowing programmers to reliably read and write data to the chips.

"We have created magnetic nanodots that store one bit of information on each nanodot, allowing us to store over one billion pages of information in a chip that is one square inch," says Dr. Jay Narayan, professor of materials science and engineering at NC State

The chips themselves can be manufactured cost-effectively, but the next step is to develop magnetic packaging that will enable users to take advantage of the chips – using something, such as laser technology, that can effectively interact with the nanodots.