Why is Ethereum so popular for NFT projects?


    Ethereum provides everyone, regardless of background or location, with open access to digital money and data-friendly services. It’s the technology that powers the cryptocurrency ether (ETH) and thousands of other apps available today.

    Ethereum Tokens and Smart Contracts

    Ethereum was the first network to support smart contracts. Smart contracts make providing ownership and governing the transferability of NFTs considerably easier. Furthermore, Ethereum designed the ERC-721 token standard specifically for the production of NFTs. As a result, it prepared the stage for the digital asset revolution by laying the groundwork for NFTs.

    Furthermore, because the majority of projects were built on this, wallets like Metamask were built in such a way that NFTs had to work with the Ethereum Virtual Machine (EVM). Then and only then would they be able to handle Ethereum-based NFTs.

    The EVM is a decentralized computer—a virtual machine—that manages the Ethereum network’s millions of projects. It is the foundation of Ethereum’s operating system. As a result, NFT developers needed to ensure that their projects were EVM compatible, which is why they needed to build on Ethereum.

    As the popularity of NFTs grew, Ethereum became one of the few blockchains capable of supporting these digital currencies. Sensing the opportunity, many Ethereum-based NFT markets popped up, including Rarible, OpenSea, and Nifty Gateway, and customers flocked in.

    As a result, while Ethereum is not required for minting and exchanging digital tokens, it is unquestionably the most popular. It also has a large buyer network as a result of its long-term exposure. Naturally, its creators prefer it to other cryptocurrencies.

    Popularity comes with its share of problems

    Ethereum’s rise has also resulted in a slew of issues. An inflow of network traffic is caused by a significant number of initiatives. Transaction fees gradually climb as a result of the increased traffic. The network was also hampered by the increased traffic. Transactions became extremely slow, and users were compelled to pay additional fees to have their transactions prioritized.

    Then there’s the matter of the environment. According to assessments, its annual power consumption is similar to that of several countries.

    As a result, a slew of new blockchains has emerged to address these challenges. On the Polygon blockchain, for example, you don’t have to pay any gas fees. Users must pay a gas price in addition to the transaction fee to have their transactions prioritized. You also only have to pay a small charge to convert ETH to Polygon. The Polkadot network is also recognized for its ‘green NFTs,’ which address Ethereum’s sustainability and environmental concerns.

    In addition to Ethereum, the Solana blockchain has emerged as a contender. It could process 60,000 transactions per second, compared to Ethereum’s 13 transactions per second. Solana’s transaction fees and environmental impact are both very low. Because of these capabilities, the Solana blockchain surpassed Ethereum in terms of daily NFT sales for the first time on May 24, 2022.

    NFTs developed on such platforms, however, need to be EVM-compatible if their authors intend to use wallets like Metamask to access them.

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