How can blockchains be used in NFT development | The Financial Express

How can blockchains be used in NFT development

As stated by Cointelegraph, the process of creating NFTs which requires uploading of metadata in the form of a cryptographic token over an active blockchain is known as minting

How can blockchains be used in NFT development
Ethereum introduced ERC-1155 as an official smart contract standard for supporting wide scale NFT adoption

One of the most used aspects of blockchain and non-fungible tokens (NFTs) is the display and trade ownership of real and digital objects and trade ownership, according to Cointelegraph. Metadata in NFTs tends to be the point of difference from digital images, as they carry unique properties and identifiers that represent ownership, rarity and other attributes related to physical art and property.

As stated by Cointelegraph, the process of creating NFTs which requires uploading of metadata in the form of a cryptographic token over an active blockchain is known as minting. Without the backing of blockchains, NFTs lose their characteristics of being immutable,verifiable and unique identifiers. Use cases related to NFTs help to determine and validitate the legitimacy of ownership of assets across sectors such as artwork, intellectual property, real estate, among others. NFT marketplaces are publicly accessible marketplaces which allow users to mint, purchase and sell NFTs. With the use of NFT blockchains, third-party marketplaces also help to cater to a wide range of audiences. 

Based on information by Cointelegraph, with NFT ecosystem taking off in 2017, Ethereum introduced ERC-1155 as an official smart contract standard for supporting wide scale NFT adoption. As a result, for every NFT which got transferred, the NFT would require the creation of a smart contract to respond with each NFT. Solana ecosystem has been promising compared to Ethereum, as Solana is backed by high throughput and low fees. Formerly known as Matic, Polygon network works as a secondary layer (L2) which is present in the Ethereum mainnet. 

Data from Cointelegraph showed that Cardano blockchain aims to solve the issues of Bitcoin, Ethereum, and other platforms. Minting of NFTs through Cardano by the use of third-party services or self-minting gives user control over the minted token. NFTs on the BNB smart chain are built on the grounds of compatibility with the use of other blockchains. Moreover, behaviour among NFT developers has shown that they prefer using BNB for building a NFT marketplace. 

Furthermore, Cointelegraph has given the pointers for users to keep in mind before choosing a blockchain for NFTs which include being future-proof, ensuring fast transactions, providing cheap gas and transaction costs, ensuring a thriving secondary NFT marketplace, providing intellectual property (IP) governance, ensuring legitimate partnerships, and cross platform compatibility.

(With insights from Cointelegraph)

Also read: 60 million NFTs could be minted in one transaction: StarkWare founder

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