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REASON FOR USING ETHEREUM FOR NFTs

REASON FOR USING ETHEREUM FOR NFTs

1.

Are NFTs based on Ethereum?

Immovable tokens (NFTs) are compatible with any Ethereum-based project. For example, you could trade a piece of art for a ticket!


Most NFT is part of the Ethereum blockchain at the highest level. Ether (ETH), like Dogecoin (DOGE), is a cryptocurrency, but the Ethereum blockchain also empowers these NFTs, which store additional information that allows them to operate differently in digital currencies.


NFTs are incredibly powerful, and ERC-721 was created to address the need for unique tokens. Moreover, due to its unavailability or age, the ERC-721 standard is different and may have a different value than another token from the same smart contract. Etherscan NFT Tracker measures high NFTs in Ethereum by transfer volume.


But do you need Ethereum to do NFT? The answer is no. Ethereum is not a requirement for creating NFTs. Other blockchains like Solana (SOL), Cardano (ADA), Tezos (XTZ), BNB Chain (BNB) and Tron (TRX) are different forums for grinding or creating NFTs.


So, if you want the answer, "Is ETH the only way to buy NFT?" The answer, too, is no. Each forum requires that the transaction fee be paid for its native token. For example, ADA 2 (traditional Cardano blockchain token) costs the NFT-MAKER PRO platform, which is paid for by the customer fund and NFT mint (requirement from Cardano).


2.

Why so many Ethereum NFTs?

Ethereum is a leader among other blockchain networks and NFT-born Ethereum blockchain. As a result, NFTs are sold at a much higher average price, so creators prefer them over other platforms.


Due to its highly secure network and data structure, the Ethereum blockchain leads the financial market (DeFi), with a number of NFT projects operating on it as ERC-721 coins. In addition, the blockchain provides NFTs with broad exposure to a large and growing market. In addition, NFT programs should continue to be compatible with Ethereum machines so that Ethereum funds such as Metamask can support them.


However, the large volume of network traffic creates significant backlogs, leading to significant increases in operating costs. Rarible, OpenSea and Nifty Gateway are three popular Ethereum-based NFT markets. However, because of the limitations of the Ethereum blockchain, NFT creators have turned to other solutions, such as the Solana blockchain, to overcome these difficulties.


Ethereum NFTs vs. Solana NFTs

The harmonization process used by Solana and Ethereum is different. Proof of service is used by Ethereum, leading to a highly dispersed network with low scalability. ETH 2.0 is designed to address the dreaded downturn that has threatened its shares in the NFT and DeFi markets. As a result, the blockchain leader may lose his status unless the 2.0 development is launched immediately.


In contrast, Solana uses a combination of stack proof and historical evidence, a less secure but more efficient method that allows for faster and less expensive transactions using its native currency called SOL. However, Ethereum is a mature project with a significant market position, which increases creators' confidence in implementing NFTs in the Ethereum blockchain.


SolSea is Solana's open NFT marketplace. When NFT is implemented, it allows creators to select and integrate licenses. That being said, collectors know what they are buying and creators know what they are selling. Solanart, the famous NFT market launched before SolSea, is another popular NFT market in Solana.




3.

Why are NFTs using Ethereum and not Bitcoin?

The main goal of Ether is to make Ethereum's smart contract and platform functionality decentralized applications (DApps) easier to use and make money, rather than establish itself as a new financial system. However, Satoshi Nakamoto called Bitcoin an peer-to-peer electronic system.


Smart contracts that assign ownership and control the transfer of NFTs are used to create immovable tokens, which Bitcoin blockchain does not support. NFTs cannot be sworn because they do not change. Although each Bitcoin will have the same value, each NFT may represent a different basic asset and as a result, have a different value.



For example, when someone manufactures or makes NFT, he uses code that is stored in smart contracts that follow various standards, such as ERC-721. This data is stored in a blockchain, where NFT is controlled.


In addition to the above, each token has a unique identity tied to a single Ethereum address. That being said, each token has a unique owner that can be easily identified as being based on Ethereum and can be purchased and traded on any ETreum-based NFT exchange or market.

Source: cointelegraphy




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