Recently the term digital ownership has come to mean something. While non-fungible tokens (NFTs) have been around for a while, they have caught the attention of mainstream media in the past few years or two. In the third quarter of 2021 alone, the volume of NFT trading via the blockchain exceeded $10 billion, well above the $1.2 billion in the second quarter.
NFTs are unique digital assets that represent property. As proof of ownership, NFTs range from art and digital collectibles to real estate and other physical assets. This is causing a fundamental shift across a wide range of industries, increasing the efficiency of ownership transfers and opening up new opportunities for digital assets.
According to Jonathan Choi, chief investment officer of Metaplex – the Solana protocol that sets open standards for issuing and owning digital assets on-chain – that while NFT is gaining popularity with the mainstream audience for profile pictures, artwork, collectibles and technology. Primary NFT is. more important.
“NFTs can serve a much wider range of uses, including representing ownership of physical assets such as real estate, loans, luxury goods, and other digital assets such as voice, files, certificates or certificates,” he told Cointelegraph.
Like most Decentralized Finance (DeFi) platforms, most NFT-based projects are built on the Ethereum blockchain – and that’s understandable. Ethereum is the most active smart blockchain in the world, and more than anything else, NFT sellers want an audience.
About it: Solana has surpassed Cardano, and Tether has become the fourth largest cryptocurrency with a value of $76 billion.
After the reign of Ethereum
However, Ethereum’s role in the growth of the NFT industry has been much more than just a host platform. In fact, without a doubt, the ERC-721 token standard now started the NFT revolution in the first place. CryptoKitties launched nearly half a decade ago, and while the platform was very popular at the time of its launch, it may not have fully addressed the limitations of the blockchain at the time.
Network congestion and unpredictable, and sometimes ridiculous high gas costs have pushed many players away from the NFT territory, but this is no longer the case. Apparel like Axie Infinity and Decentraland take NFT and GameFi stories further than ever before. However, given Ethereum 2.0’s ambiguous modernization plan and scalability, not all projects are convinced that this is the best place to open a store.
CryptoKitties announced the move to the on-premises Flow blockchain, citing Ethereum’s limited bandwidth and high fees. While the platform is not an NFT platform as it once was, it is a distinct space brand, and its exit from Ethereum could impact many projects on other networks.
Choi added, “Ethereum will always be the lead chain for launching the NFT and one of the most active crypto communities, but due to some limitations, there will still be issues and challenges for a broader audience and developers.”
In particular, networks like Cardano and Solana are foraying into the NFT, with Solana even launching a $5 million fund this year for board creators and their fans in the ecosystem. Solanart, the most famous NFT platform on the Solana blockchain, is creating waves among users in the space, creating groups like Degenerate Ape Academy, SolPunks, Aurory and others with hundreds of millions of dollars in trading hands.
“NFT has a lot of potential, and we’re now seeing research on what’s possible,” Frederic Griegard, CEO of the Cardano Foundation, told Cointelegraph. For example, in decentralized finance, you can use NFT. to implement. Security mechanisms to ensure the uniqueness of transactions and the accuracy of every order sent and to prevent attacks on the front lines. ”
He also mentioned other technology use cases in blockchain ecosystems, including its use as a mechanism to control access to tools and assets on the public blockchain and the ability to ensure the uniqueness of a decentralized eUTXO application (DApp). “Outside the immediate ecosystem, there is potential for mass adoption of NFT in terms of property rights for individuals and communities,” he added.
While Cardano isn’t as bold in NFTs as Solana, she is making progress. Following the successful split of the Alonzo Network that enabled smart contracts, CardanoKidz launched this year as Cardano’s first NFT project. Just last month, SpaceBudZ managed to complete its first sale of NFT on the web for more than $1 million.