Best Blockchains for NFT Project
NFT technology gained millions of dollars for NFT artists. Reports indicate that $ 2.5 billion was invested in the NFT in Q1 of 2021, which is very high for this cryptocurrency market. If you want to start a project in the NFT market, you need to know how to choose the right blockchain for your NFT project. It is very important because it is the technology that your customers will interact with.
What is NFT?
What is NFT? Before we look at the different blockchains, let's look at NFT. NFTs are non-fungible tokens that identify ownership of a real asset. These tokens are fundamentally different from cryptocurrencies. Unlike other cryptocurrencies such as Bitcoin, NFTs are not interchangeable because they do not have the same value.
For example, you can exchange one bitcoin for another Bitcoin because the two bitcoins are no different. Still, since the two NFTs show ownership of two other assets, they are not interchangeable. However, the ownership of each NFT is also known. It is not possible to manipulate it.
Another major difference between NFT and other cryptocurrencies is being indivisible. You can divide a bitcoin into smaller quantities like Satoshi and swap them. However, such a feature does not exist in NFTs.
How to Choose the Best Blockchain for an NFT project
Although NFTs are slightly different from other cryptocurrencies in terms of usage, both are entities on the blockchain. When an NFT is created or sold, a transaction is recorded on the blockchain.
Different features of blockchains (such as transaction fee, consensus mechanism, etc.) will affect your NFT project. It shows the importance of choosing the best blockchain for NFT developers and users. In the following, we will overview the features you will need when selecting the right blockchain to build NFT.
Speed of Transaction Confirmation
Speed is one of the most important factors to consider when choosing the right blockchain for your NFT project. When the blockchain has a low pace, you have to pay more to the network miners to your transaction have a higher priority.
Some blockchains are scalable and can record thousands of transactions per second. Scalability is low in some other blockchains that it takes seconds to record a transaction. Of course, the speed of a blockchain is not always a fixed number, and various factors such as congestion, infrastructure design, and several other factors affect it. However, always check the transaction speed before choosing a blockchain for your NFT project.
Security is one of the biggest concerns of users of any blockchain because the transaction consensus mechanism is to prevent all kinds of attacks (especially 51% attacks and intermediary attacks). Security is paramount since hacked cryptos are almost impossible to track in cryptocurrencies. Before choosing the right blockchain for NFT, look for high-security blockchains so that users can safely purchase the NFT generated by your project.
No one likes to pay dollars to make a transaction on the blockchain network. However, the transaction fee cost in some blockchains is so high that many people decide to use newer blockchains. On the other hand, not all NFTs will be expensive. For this reason, building NFT on a busy blockchain is not economical. The lower the blockchain network transaction of your choice, the easier it will be for users to purchase your NFT. Some websites record the fee of each transaction on different blockchain networks, and you can check them before choosing the right blockchain for your NFT project.
The blockchain network consensus mechanism can also affect your NFT sales. Blockchains that use proof of work (POW) algorithms are slower than POS blockchains and are vulnerable to attack. Some blockchain networks also have complex consensus methods to confirm transactions. Therefore, when selecting the right blockchain for your NFTs, it is advisable to prioritize blockchains with a consensus proof mechanism or similar mechanisms such as LPoS, DPoS, and PoH.
What is the best blockchain for the NFT project?
Today, various blockchains have made it possible to build NFTs by smart contracts. These networks differ in speed, transaction fees, security, and other factors. In the following, we will overview the best and most common blockchain networks for implementing the NFT project.
Ethereum Blockchain is the most widely used and popular NFT for blockchain globally. Various platforms such as OpenSea and Rarible have been launched on this network. The world's second-largest cryptocurrency has a large community, and many believe that the network's token standards (ERC-721) and its design have led it to such a position. This claim is largely true, and some of the world's best blockchain programmers are constantly working to improve Ethereum.
However, the Ethereum blockchain also has its limitations. This blockchain network has been busy for almost a year and has very high transaction fees, and the high traffic of this network has caused its scalability to decrease significantly. These problems have prevented people with cheaper NFTs from using the blockchain. The network is currently using the stock-proof consensus mechanism but will soon use the proof of stake consensus algorithm.
Solana is one of the fastest blockchains globally, and many people believe that this network is a good blockchain for the NFT project. There are currently about 400 projects running on the Solana. Degenerate Ape Academy, Solana Monkey, and SolPunks are some of the most successful NFT projects on the network, and there are platforms such as Solanart.io, Solsea, and DigitalEyes for NFT trading.
The consensus mechanism of the Solana blockchain network is a combination of Proof of History (PoH) and PoS. The mechanism can confirm 65,000 transactions per second. However, one of the main reasons for choosing Solana Blockchain for NFT could be the network's very low fee, which is currently less than $ 0.002.
The Solana Foundation has even built a chain bridge called the Wormhole, allowing users to lock ERC-20 tokens in a smart Ethereum contract and generate SPL tokens (for the Solana network).
Polygon is an Ethereum Layer 2 blockchain protocol that makes it possible to launch various projects quickly with high scalability through an independent smart contract. This blockchain network is currently faster than Ethereum and can communicate with the Ethereum blockchain network.
Polygon, which uses a Pos mechanism, also benefits from a high-security Ethereum blockchain and low fees. These features make Polygon a suitable blockchain for NFT projects for some people.
Binance Smart Chain
Binance Smart Chain (BSC) is a widely used and popular blockchain founded by the world's largest exchange, Binance. This blockchain today hosts the most crpytocurrency projects after Ethereum, especially in NFT.
The blockchain operates under the PoSA mechanism and, after confirming 21 nodes, confirms transactions at a much faster rate than Ethereum. The network is also compatible with the EthereumVirtual Machine (EVM), allowing developers to design NFT projects quickly.