Recently, these Non-fungible tokens (NFTs ) have become the talk of the town. Everyone does have some basic knowledge about the current trend. NFTs are more than collectible digital art, like the crypto that people think is more than a coin and want to invest in.
But before you invest in NFTs, you must understand the technology behind the NFT you are purchasing. These digital assets offer you unique products such as media, art, and in-game items. One of the main benefits you can experience from NFTs is proof of ownership.
To choose the most popular blockchain, you need to select the most popular blockchain for NFTs. But before that, let’s discuss the NFT and then move forward!
What are NFTs?
NFT or Non-Fungible Tokens are generally created using the same time of programming that cryptocurrency developers use. These are the cryptographic assets that are based on the technology of blockchain. But you cannot exchange or trade the NFT as you do with cryptographic assets.
Like Bitcoin, NFT has made it clear that it cannot be replaced or not interchanged because it has unique properties. Cryptocurrency or physical currency is the one that is fungible, which means you can trade it or exchange it for one another.
Critical features of NFT-
- NFT is the blockchain that will represent the collectibles on the internet, such as music, art, and other games, with an authenticity created by the blockchain technology that underlies the cryptocurrency.
- It is a unique currency that cannot be forged.
- NFT exchanges take place with cryptocurrencies, including Bitcoin.
Difference between NFTs Blockchain and NFTs marketplaces
If there is no blockchain, then NFTS will lose their inherent property as the verifiable, unique identifier. NFT has found use in cases as the tool that determines and validates the legitimacy of ownership across different sectors, which include intellectual property, artwork, real estate, and a wide range of collectibles.
NFT marketplaces are the ones that are publicly accessible which will allow the users to mint, purchase, or sell the NFTs. However, several NFT blockchains offer you marketplaces that are an option for users who want to cater to a wide range of audiences.
Widespread Blockchain use in NFTs
1. Ethereum Blockchain for NFTs
Ethereum is the blockchain launched in 2015 and is at the head of the curve. It is the widely used blockchain for NFTs and has a large developer community with several advantages.
Any blockchain bug can be easily fixed with new advanced features implemented regularly.
With the help of ERC- 721 standards, the NFT market has evolved into an intelligent contract-based tool. The financial use case works within the art, gaming, music, and tangible assets. It is a multi-token standard introduced with the smart contract interface, and with this, you can send multiple tokens at one time and even save some money on the cost.
Several more blockchains have launched as alternative NFT ecosystems, and in that process, they have slowly relieved the congestion on the Ethereum network.
2. Solana Blockchain for NFTs
Solana is usually one of the quickest programmable blockchains you can find in the crypto space. It currently boasts more than 400 projects spanning NFTs, DeFi, and Web3. Regarding market capitalization, it has reached a whopping $65,155,587,432.
Solana is the blockchain based on the combination of proof-of-stake and proof-of-history variety. It will even reduce the transaction verification process because the nodes do not require processing power that can validate the different timestamps.
It is the most promising blockchain that can host and trade NFTs. As compared to the other NFT market leaders, the Solana blockchain brings low fees to the table. It offers several tools, services, and smart contracts related to NFT development.
The NFT smart contracts on Solana are stateless as they allow the notes to confirm the validity and do not require local validation.
3. Cardano Blockchain for NFTs
Cardano blockchain is the third-generation proof-of-stake blockchain platform, and its goal is to solve the problem that Bitcoin and Ethereum impose. While buying the NFTs on Cardano, you must ensure you have enough native third-party services or just self-minting by using the Cardano node, as it provides users total control over the minted token.
The transaction on Cardano includes minting, purchasing, and selling NFTs, which does require fees. It is currently determining the size of the transacted file, and files with smaller sizes incur fewer fees than bigger files.
The blockchain of Cardano blockchain has two layers, namely the Cardano Settlement Layer (CSL) and Cardano Computation Layer, as it comes with the smart contract logic. It boasts high performance as it can process more than 250 transactions per second.
Cardano has pioneered the concept of the non-fungible token following the CIP 721 metadata.
4. EOS Blockchain for NFTs
EOS is a blockchain that enables the development of decentralized applications and smart contracts. EOS native tokens are initially ERC-20 which means it has been created on the blockchain of Ethereum. It is the best-known blockchain for holding, probably with the most extensive initial coin offering, and it has raised $4 billion.
EOS’s performance is the best blockchain you can choose, with around 4000 transactions per second. The fee structure does not charge any gas or transaction fees. However, the users are required to deposit the EOS coins so that they can register their wallets on the blockchain and keep their coins staked.
The most prominent NFT project that EOS blockchain offers you are AtomicMarket, Upload, Crypto Dynasty, and Blockchain Cuties. The ecosystem of Cardano also provides in-house marketplaces for trading and minting NFTs and wallets for storing the De-Fi assets and NFTs.
5. Binance Smart Chain for NFTs
Binance Smart chain is a blockchain that is run by the Binance chain. It has an advanced smart contract functionality which is possible thanks to the Ethereum Virtual Machine. NFTs on the BNB Smart Chain are built with better compatibility with some other blockchains in mind. Moreover, the developer of the NFT chooses BNB as their go-to platform to build an NFT marketplace.
It is not the NFT marketplace because it is faster and cheaper but because of its benefits in the cross-chain and the Ethereum Virtual Machine compatibility.
The BSC is compatible with the EVM and enables the developers to smoothly port the projects over the Ethereum blockchain, granting some support to the wealth of dApps and BSC tools. The native token of the BNC is BEP-721.
6. Tezos Blockchain for NFTs
Tezos is a PoS (proof-of-stakes) blockchain that uses the TZIP-012, issued for storing the NFTs on the smart contracts and usually labeled as the FA2 contracts. It is an in-house token that you can use as a unified token. The Tezos Blockchain’s position is eco-friendly compared to the other leading blockchain in the NFT space.
One of the fantastic features of Tezos is that it is a self-amending function that will empower to implement it to the open-chain mechanisms to do away with the complicated form while proposing, selecting, testing, and activating the upgrades.
Tezos blockchain uses unique liquid proof-of-stake mechanisms where you can call validate a ‘baker’ or an ‘endorser.’ If they try to meet the requirement, they may choose a delegate, and the only reason for that is its extraordinary concept that increases the focus more on the governance liquidity instead of the scalability of the network.
Moreover, Tezos has caught the attention of celebrities and many famous brands employing blockchain for minting NFTs.
7. Tron Blockchain for NFTs
Before becoming its independent network in 2018, this blockchain was an Ethereum-based ERC-20. Nowadays, Tron has become a fully-fledged decentralized open-source blockchain that will facilitate the development of tokens, smart contracts, and dApps.
The blockchain also has the native token standard, and in 2020, it introduced the NFT standard, which is known as TRC-721, in addition to the older one TRC-20, to explore new prospects.
TRX is the network that implements the TRC-721, aiming to improve the overall performance of the network through traffic management. Additionally, Tron-based NFTs maintains full compatibility with the Ethereum ERC-721 standard. However, creating the NFT over the Tron will implement the wallet interface and lead to safe transfer. But if you want to issue the TRC-721, you must create the account and have at least 350 TRX as the minimum balance.
Things you should consider before choosing blockchain for NFTs
When you have to select the blockchain for NFT, you may come across several different options, which can be challenging too. But because of the several options, you can get to know which one is offering you better services.
So, to choose the best NFT blockchain, you need to consider the following requirements.
1. Fast transaction
The speed of blockchain transactions plays a crucial role in the success of your NFT campaign. Some blockchain has a higher transaction speed, which means they can perform better with more number of transaction per second; however, things may become a bit slower.
The transaction speed has a significant impact on the cost of the transaction. The user will have to pay higher fees that the miners impose to ensure that the transaction will be prioritized over the others.
2. Future-Proof
The future proof is crucial for the NFT blockchain. It is essential as it helps in evolving at a rapid pace and growing at a fast pace. You need to look for the well-known blockchain to ensure they have the verification tick. It is crucial because that will help check the sellers’ legitimacy. There are many legitimate NFT sellers, so you should choose one.
3. Smart contract functionality
The NFT platform usually relies on the smart contract, which is responsible for setting the terms of the trade between the buyer and sellers. It is a well-crafted and sophisticated smart contract that will guarantee you security on the platform. You must ensure that you have chosen the blockchain with reliable and robust intelligent contract functionality.
Moreover, it will inform you of the blockchain’s smart contract programming language. It offers you widespread languages such as C++, which is relatively easy for the users.
4. Transaction fees
Another essential thing that you need to ensure is the transactional fees. Only some NFT art pieces will be sold at exorbitant prices, and it is relatively more affordable than you can buy by the average user. Why should you pay the high transaction fees if the art object does not cost you much? But many transaction costs are essential if you want the broader adoption of NFTs.
You should look over the transactional fees and cost, and then only you should choose the right option and offer you higher features.
Also get to know more about How To Build An NFT Minting Marketplace From Scratch
So, you have made this journey and learned about the most popular blockchain for developing NFT. Undoubtedly, the non-fungible tokens have become a big thing that can help you generate higher revenue.
The person must think about the characteristics of the blockchain that will offer the investors the most outstanding value and also study the different available options in the market.