Non-Fungible Tokens (NFTs) are making waves in the crypto space and taking it by storm. In the last year the market cap has risen by 1785%, reaching $19 billion. In the process, known as NFT marketplaces, in which you can purchase and sell digital goods, are now a great source to generate revenue and provide unimaginable ROI.
NFT marketplace companies that develop are increasingly joining the bandwagon and are innovating various solutions. Perhaps now is the perfect moment to start a NFT industry that is based on blockchain. Companies that develop software for blockchain, and others, are also working on ways to leverage NFTs. In spite of this there is no need to take an uninformed view on the subject, particularly in relation to the specificity of a project's NFT marketplace development company.
from security to function The process of creating a strong NFT marketplace requires a variety of critical aspects. Each one requires a lot of knowledge and skill, so that customers and owners of projects are at risk and vulnerable to dangers. A NFT development company has to build marketplaces using the most suitable blockchain to achieve the best results, though the search can be a daunting task. To aid in this endeavor this article reviews and outlines the most suitable blockchain to build NFT marketplaces.
Choosing the Ideal Blockchain for NFT Marketplace Development
In our search to find the most effective blockchain in NFT Marketplace development, it is important that we should take into consideration a variety of factors. This article highlights these to help us better comprehend what's to come in the future.
Transaction and Token Development Cost
NFT-based transactions require efficient solutions, as they do not always include trading in billion-dollar art works. They are more likely to involve micro-transactions that are more frequently used, which involve digital assets in games such as digital collectibles, cards, games, and more. Naturally, no one would want to pay huge charges for these transactions. cutting down on costs is essential to the ease of use and acceptance. There is an urgent need to optimize the development cost of blockchains, particularly when it comes to non-fungible token markets. Thus, the fee system for NFTs is an important factor to consider, with the most effective one being free.
Robust Smart Contracts
The security of blockchain's smart contracts is the primary factor in the security overall that blockchain technology can provide. Writing clean, secure, and error-free code is essential for this reason. Smart contracts must undergo rigorous and rigorous tests, which ensures the highest levels of reliability and effectiveness. Only that way can NFT marketplace creators and users feel safe about the smallest risk of hacks, security breaches and downtime.
Possibility of Forking
NFTs are highly valuable, principally due to their rarity and distinctiveness. Hard forks could pose serious dangers to these attributes since duplicate NFTs can pose a threat to their integrity. Asset ownership is at risk as NFTs that are on the old chain could lose value entirely. With these factors in mind it is crucial to construct NFTs as well as marketplaces, on blockchains that are fork-proof.
Speed of Transaction
Speed is one of the main factors that determine a system's effectiveness, particularly in areas that require storage and the transfer of value. However, speed shouldn't be with high cost or inadequate security, as is often the case for several blockchains. The speedier finality of the blockchain means that attackers will are able to attack faster, as blockchains are impervious to change by definition. Any platform that can achieve this while maintaining decentralization is perfect in NFT market development.
Security
Blockchains could be susceptible to various attack vectors like Fifty-One percent (51 percent) and Man-in the-Middle attacks. Platforms using Proof-of-Work (PoW) mechanisms for consensus are particularly susceptible to attacks in which attackers take control over the majority of the computing power of the network. The loss of access to data, money, and other information is the result of such attacks. Decentralisation is hampered. So in the case of NFT markets to develop, it's recommended to choose blockchains that have alternatives to mining-free consensus mechanisms, like the Proof of Stake (PoS).
Best Blockchains for NFT Marketplace Development
Let's look at a few of the blockchains currently in use that are able to support NFT development, keeping in mind the previously mentioned parameters.
Ethereum
At present, Ethereum is the most extensively used and most popular cryptocurrency for NFT market development. The most reputable NFT marketplaces, such as Rarible, OpenSea, SuperRare, Decentraland, leverage the Ethereum network. One might wonder what's driving the popularity of Ethereum in NFTs? What is it that makes the largest online marketplaces in the world decide to go with Ethereum?
To begin, generating NFTs using Ethereum Virtual Machine (EVM) is a breeze. Ethereum Virtual Machine (EVM) is very simple and straightforward. Sometimes, all one has to do is to upload an image and then fill in certain details. Resolving ownership disputes is simple as the information about transactions and their metadata are clearly identified. The two most popular token standards, ERC-721 and 1155, facilitate interoperability, and ease the development process even more.
The Ethereum blockchain is not without drawbacks, including high costs and limited scalability, top of all. In the present, it's well-known that spikes in traffic on the network clog Ethereum and result in high fuel costs. Therefore, Ethereum isn't suited to micro-transactions and daily usage.
Due to its PoW-based consensus Ethereum has fallen victim to numerous 51% attacks; there are more to come in the near future. There's also been a hard fork to Ethereum that has resulted in the creation of Ethereum Classic, and a third is in the works to be released for Ethereum 2.0.
Binance Smart Chain
The world's most prominent crypto exchange Binance plans to open the Binance NFT marketplace by June 20, 2021. By leveraging Binance's huge liquidity reserves this platform will permit NFT purchasers and sellers to communicate with minimal cost.
BinanceNFT offers 'Premium Events featuring famous artists. They can offer them up to 90% of the profits generated from sales. Artists who are who are registered on the platform are eligible to receive one percent of each subsequent sale as royalty payments. However general users are able to trade their NFTs and pay just 1% of each transaction in processing fees.
Along with scalability, and a low cost In addition, it will also have low costs and scalability. Binance Smart Chain will enable compatibility with Ethereum which makes it interoperable. Additionally, several NFT marketplaces have already been operating through the Binance chain, including BakerySwap, Battle Pets, and PancakeSwap.
Cardano
The Cardano blockchain isn't fully compatible with smart contract. However, it is already working with NFTs. The platform's model is based on ICOs the users must be able to trust the projects before they can be officially launched. NFT-DAO is currently developing an NFT standards for Cardano and Cardano Kidz is already sold out, despite having no actual-world applications. In the same way professor Cardano, LoveAda, and Somint are currently working on the development of their own NFT marketplace based on the Cardano blockchain.
Tezos
The Tezos blockchain comes with an NFT marketplace, called TRUESY. Its primary goal is reducing carbon footprint. By optimizing the CPU use the platform claims to consume more energy and consume 2,000,000 less than similar NFT platforms. Hic et Nunc is another Tezos-powered NFT marketplace, which promises to help the environment by reducing the consumption of energy. OneOf is another upcoming platform, marketing itself as an ESG-friendly NFT marketplace and offering affordable NFTs to environmentally-conscious music lovers.
WAX
The Worldwide Asset eXchange (WAX) is among the most well-known networks for games that are decentralized entertainment, entertainment, as well as NFT trading. WAX is an "Green NFT Blockchain that promotes sustainability in the environment by being 125,000x more efficient than Ethereum network. AtomicHub is a well-known NFT marketplace that is on WAX and has more than 31,300,964 NFTs.
Flow
The Flow blockchain is a developer-friendly network that is specifically designed for the creation of marketplaces and digital assets. The platform aims for scalability by not sharding, however, it has upgraded smart contacts written using the Cadence Programming Language. Furthermore, Flow has a multi-node structure to ensure consensus, execution verification, collection, and execution. VIV3 functions as an NFT marketplace that is based on the blockchain that allows users to create NFTs at no cost. NFT makers and artists earn 87.5 percent of their earnings by selling their personal NFT collection, and the additional 10 percent on each subsequent sale.
Solana
Solana is not to be missed as the preferred cryptocurrency in NFT development. It's home to numerous high-profile NFT collections like DeGods, Okay Bears, or Degen Ape Academy. Solana is distinguished by its essential qualities like high capacity (65,000 TPS) quick and affordable transactions (~4s) as well as an extensive community that expands rapidly.
Solana is built using Rust that makes it simple to use by developers. The biggest worldwide NFT marketplace in the market has been Magic Eden, but there's plenty of room to create custom marketplaces that provide the most user-friendly experience possible for any NFT project. There are a few likely drawbacks that can be temporary however. The most significant is the delay in the operation of the blockchain during periods of high loads. Another is forking - although it's not an important issue, it does leave the possibility of creating two different versions of an NFT following a bigger fork.
Algorand
Ethereum is among the most well-known cryptocurrency; The Tezos platform and Wax are gaining momentum for environmental protection; Flow is innovating to increase scaling; Binance is banking on existing liquidity Cardano is yet to set up. Each of them has certain advantages but they also have a good portion of pitfalls. Let's take a look at Algorand and discover what makes it the most popular blockchain for NFT markets.
In the beginning Algorand's transaction fees are at a minimum of $0.011. Because it is so cheap it is perfectly suitable for micro-transactions such as trading cards, for instance. Furthermore all transactions conducted with Algorand are peer-to-peer and atomic. They also have immediate block completion, which means greater performance and security.
The Algorand Standard Assets (ASA) framework supports the creation of NFTs and marketplaces, which facilitate bugs-free, durable and tamper-proof smart contracts. A pure proof-of-stake (PoS) algorithm for consensus is used to validate the interactions of Algorand which further increases its security. A worldwide distributed community of holders of the $ALGO token take part in the decentralized decision-making process of the platform with voting rights that are proportion to the amount they own. Since it is not mining, Algorand eliminates the risk of 51% attacks.
In addition to the previous attributes, Algorand is a carbon-negative and forkless blockchain. When an NFT is incorporated into the blockchain, there is no way to replicate or duplicate. Furthermore, one can transfer tokens that have a restricted version, which can be extremely beneficial in the field of virtual real estate as well as digital registrations. In addition, the forkless nature of Algorand ensures absolute and constant enforcement of ownership in relation to NFTs.
Building NFT Marketplaces
Algorand is among the most reliable blockchains for NFT marketplace development. We know this because we've gone through the entire procedure and developed OpenNFT Whitelabel - an NFT marketplace that the community can to use for free under an free source licence. With this platform you'll be able to easily start an online marketplace for your business and issue NFTs using Algorand effortlessly, while ensuring top security.
If you're looking to create an individual NFT Marketplace or prefer to modify OpenNFT and add more features, don't hesitate get in touch, so we can discuss the possibilities regarding your project!