The Ethereum blockchain is the best for NFTs. It is widely regarded as the one-stop shop for NFTs and has rapidly developed over the past year into the most talked-about and occasionally the most trafficked blockchain in existence.
However, there are a ton of other blockchains that are gaining popularity in the NFT field. Crypto-artists and NFT fans have kept looking for new locations to mint and sell NFTs due to the Ethereum blockchain’s high transaction costs and negative environmental impact.
But there are several factors to take into account when deciding which blockchain to mint on. Network scale, creator expenses, consumer purchasing patterns, security, and community input are a few of the most crucial factors. So we’ve put together a high-level description of blockchains for NFTs in an effort to bring some clarity to the pervasive and rapidly evolving world of web3 technology.
The most popular blockchains support NFTs
Ethereum
Ethereum is now the blockchain that NFTs use most frequently. Due to its extreme decentralization, it offers all of the financial and legal services that are generally required for transactions without the use of middlemen. It also houses some of the most well-known NFT initiatives (such as CryptoPunks and the Bored Ape Yacht Club), NFT artists, and NFT marketplaces (OpenSea) (Pak and Beeple).
The two well-known token standards, ERC-721 (used to create non-fungible tokens) and ERC-1155, are both driven by Ethereum (used for the creation of new semi-fungible tokens). The bulk of NFTs currently in use are built on these two standards, and it’s likely that this trend will continue. Additionally, Ethereum just put up EIP-2309 as a new standard. This should make it possible to mint NFTs more successfully and provide users the freedom to mint as many tokens as they like in a single transaction.
Solidity, an object-oriented programming language developed by the Ethereum team and compiled by the Ethereum Virtual Machine, is used by Ethereum to implement smart contracts (EVM). The blockchain also has a cryptocurrency it calls Ether (or ETH). Additionally, Ethereum supports over 460,000 token contracts built on its ERC-20 token standard. Tether (USDT), Basic Attention Token (BAT), USD Coin (USDC), ChainLink (LINK), and Dai are some of the top cryptocurrency initiatives (DAI).
Sadly, it is also one of the most expensive and energy-intensive solutions available.
In comparison to other blockchains, the transaction fee for Ethereum fluctuates depending on network congestion and is typically between $20 and $70 per transaction. This is due to the Proof-of-Work (PoW) algorithm that Ethereum uses to function. In order to add blocks and transactions to the blockchain, PoW forces computers to compete with one another in order to solve challenging riddles. Because of how difficult and time-consuming it is to answer these puzzles with computers, enormous quantities of energy are wasted.
Solana
One of the fastest programmable blockchains in the cryptocurrency industry is Solana. Such complicated riddles are unnecessary because of its special integration of proof-of-history (PoH) and proof-of-stake (PoS) consensus methods. As a result, validation costs and times are drastically decreased.
Users who use PoS stake some of their cryptocurrency in exchange for the chance to be selected at random to serve as a block validator. When chosen, validators receive SOL. This helps to reward users for becoming stakers as well as to incentivize users to become stakers. PoH is used to cryptographically validate the interval of time between two events and complements PoS. It is used to make sure that transactions on the Solana blockchain are found by the appropriate leader and in the right order (validator).
Obviously, Solana’s lightning-fast transaction speed is its most notable trait and what has led to its widespread acceptance. Solana can currently process 65,000 transactions per second, but its inventors claim that if the network expands, Solana’s TPS could increase to 700,000. Additionally, the hybrid blockchain technology enables significantly shortened validation times for the execution of both transactions and smart contracts.
Advanced marketplaces can also be created with Solana. Currently, Solana-powered websites like Solanart.io (which is only available in the Beta version), DigitalEyes.market (the first open Solana marketplace for NFTs), Solsea (an NFT marketplace allowing creators to select and embed licences when they mint NFTs), and Metaplex allow you to buy and sell NFTs (which empowers artists and creators to launch their own self-hosted storefront for NFTs and execute online auctions).
Cardano
Charles Hoskinson, a co-founder of Ethereum, introduced Cardano, a complex blockchain that uses distributed proof-of-stake technology. Its main goals are to make it possible for transactions in ADA, the native cryptocurrency it uses, and to make it easy for developers to create powerful, highly scalable Cardano-powered applications.
The Cardano blockchain includes two layers: the Cardano Computation Layer (CCL), which contains the smart contract logic that developers use to move money, and the Cardano Settlement Layer (CSL), which is used to transfer ADA between accounts and record transactions. Cardano is built on Haskell, which serves as the basis for Plutus, Cardano’s programming language for smart contracts. Marlowe, the domain-specific language used to develop financial smart contracts, is likewise powered by Haskell.
Cardano has impressive performance; it can now process more than 250 transactions per second. Notable is the fact that Cardano’s Layer 2 scaling protocol, known as Hydra, is anticipated to improve performance and enable it to scale up to 2 million TPS with 2000 staking pools. In terms of transaction fees, Cardano charges between 0.16 and 0.17 ADA, or about a cent or two.
The most successful NFT projects on the Cardano blockchain include Spacebudz, which is rumored to be the first million-dollar NFT sale on the platform, CardanoKidz, a line of collectible cards, Professor Cardano, CryptoMayor, a collectible game, Crypto Knitties, a collection of 10,000 knitted characters, and Somint. The idea of non-fungible tokens of appreciation (also known as NFTAs), which are issued in compliance with the Cardano CIP-721 metadata standard, was also invented by Cardano.
Flow
A high-performance blockchain technology designed primarily for developing NFTs, games, and decentralized applications is called Flow (dApps). Flow is created with scalability in mind, which means that billions of individuals might potentially interact with NFTs on the blockchain, in striking contrast to general-purpose blockchains like Ethereum.
Flow, which was initially introduced in 2019, immediately gained notoriety as the NBA’s blockchain partner. NBA Top Shot was launched and is hosted by Flow, a product of Dapper labs (the group behind the historic project CryptoKitties), and as such, the blockchain played a crucial role in the acceptance of non-fungible tokens.
Dapper Labs, a Canadian business that created CryptoKitties, is the firm behind Flow. A whole ecosystem of applications, notably those related to gaming and digital collectibles, can be powered by this PoS-based blockchain.
Similar to Tezos, Flow also verifies transactions using only a PoS consensus process. As a result, the blockchain is able to process an enormous number of transactions; in fact, developers are now working on a model that can process about 10,000 transactions per second. Additionally, transaction costs are remarkably low.
NBA Top Shot is unquestionably one of the most prosperous examples of the marketplaces built on Flow. As of this writing, its daily trade volume is $1.1M, and there are more than 106K transactions every day. Since its public beta testing phase began in October 2020, it has enabled more than 3 million transactions overall. Other Flow-powered applications include xtingles, BloctoBay, and TuneGO.
Tezos Blockchain Technology
Tezos is a decentralized, open-source blockchain technology called Tezos makes it simple to carry out peer-to-peer transactions and operates as an advanced platform for implementing smart contracts.
The self-amending capability of Tezos, which enables it to build an open-chain mechanism to avoid a hard fork while proposing, choosing, testing, and activating protocol upgrades, is one of its most remarkable characteristics.
The liquid proof-of-stake (LPoS) consensus method, in which a validator is known as a “baker” or a “endorser,” now powers the Tezos network. In contrast to DPoS, anyone can function as a validator in LPoS as long as they have enough coins. They have the option to delegate if they are unable to fulfill this criteria. This exceptional notion is based on the idea of increasing inclusivity and putting more emphasis on governance liquidity than network scalability.
Both the widely used languages SmartPy and LIGO as well as the domain-specific smart contract language Michelson are available on Tezos. Tezos also features a native cryptocurrency and utility token called XTZ. It’s a means of exchange that also enables users to participate in the platform’s on-chain governance activities.
It’s significant to note that only the FA2 of Tezos’ three token standards is intended for non-fungible tokens. Each individual token is given a distinct token ID that is tied to the address of the token’s owner. For anyone wishing to mint significant quantities of NFTs or big-scale collections, Tezos is a wonderful place to start. Objkt is currently the biggest and most well-liked marketplace on the Tezos network.
Tron Blockchain Technology
There are native token standards for Tron. In order to explore new possibilities for the blockchain, it unveiled the TRC-721 NFT standard in 2020 in addition to the already-existing TRC-20. TRC-721 is fully interoperable with ERC-721.
The delegated proof-of-stake consensus (DPoS) with 27 rotating super representatives is used on the Tron blockchain. The Solidity programming language, which is used to deploy contracts on many blockchains, is utilized to create the smart contracts for this platform. The Tron Virtual Machine (TVM) enables developers to design, debug, and execute smart contracts in a mixed environment with Solidity. It is fully compatible with the EVM environments.
The Tron Foundation, convinced of the value of NFTs, recently established the $300 million Tron Arcade fund, which will invest in play-to-earn initiatives over the following three years. Notably, Tron has established a reputation for excellence in the NFT development industry and has been selected for numerous NFT projects. To date, there have been a number of NFT campaigns powered by Tron, such as TPunks, TronMeebits, Kraftly, and NFTOne.
Algorand Blockchain Technology
Algorand is a Layer 1 blockchain that is extremely scalable and secure, making it ideal for building and managing NFTs. Since the Algorand team really believes in the value of the NFT market, it has created comprehensive NFT functionality that does not require NFT projects to create additional apps with complicated capabilities.
The pure proof-of-stake (PPoS) consensus used by the Algorand blockchain selects block validators among its token holders at random and in private. A high level of decentralization is ensured by this consensus mechanism, which also prevents blockchain splits. Algorand-powered NFT assets are thus given the best possible protection.
The Algorand community is convinced that NFTs will be successful in the long run. The system has been tailored for non-fungible tokens and its transactional requirements, greatly accelerating the creation of NFTs. Algorand aspires to be a completely green blockchain with a net-zero carbon footprint. It recently joined forces with ClimateTrade, a well-known business that uses blockchain technology to provide transparency and traceability for CO2 emissions. Algorand and ClimateTrade intend to work together to offset CO2 emissions and improve the environment in order to meet their sustainability objectives.
Algorand can execute more than 1,000 transactions per second, and it will likely soon expand up to 46,000 tps. Its transaction cost is 0.001 ALGOs, which is considered to be quite low. Its smart contracts are produced manually or using Python’s PyTEAL compiler and written in the Transaction Execution Approval Language (TEAL), an assembly-like language that is processed by the Algorand Virtual Machine (AVM).
WAX Blockchain Technology
The Worldwide Asset eXchange, or WAX, was founded in 2017 and uses a delegated proof-of-stake (DPoS) consensus algorithm to power its 8,000 transaction per second, carbon-neutral blockchain.
WAX’s creators call it a green NFT minting machine because it uses 125,000 times less energy per transaction than Ethereum does. DappRadar estimates that there were 508.94K WAX users as of November 1 and that there were 14.6 million total transactions.
There aren’t any unique programming languages available for the WAX platform. Its smart contracts are written in C++, but before deploying contracts, it’s advisable to become familiar with the WAX C/C++ API library. The native utility token of WAX is known as WAXP. It is employed for governance, staking, and the payment of transaction fees.
A successful blockchain method for launching NFT marketplaces is WAX. Currently, the WAX-powered platforms AtomicHub and NeftyBlocks (a user-friendly market place allowing users to easily buy, distribute, and manage NFT collections) allow you to sell and/or buy NFTs (a one-stop solution for creating and trading NFTs).
Conclusion
However, it’s strongly advised to take a moment and carefully select the NFT blockchain that your NFT campaign will be running on in order to guarantee that your project will be a long-term roaring success. You should thus consider which NFT blockchain features will be most valuable to you and research the possibilities on the market.
We can conclude the following based on the aforementioned information: Flow or Solana are two NFT blockchains to take into consideration if you’re searching for one with low transaction fees and high transaction throughput. Given that the most popular tokens, dApps, and swaps are built on Ethereum, which is expected to undergo a significant upgrade shortly, it makes sense to prioritize Ethereum if you want to gain traction with your product. However, if environmental sustainability is your top priority, you should unquestionably choose a “green” blockchain. Algorand and WAX are now the most environmentally friendly solutions, although others, including as Tron, EOS, Tezos, Binance Smart Chain, and Cardano, run on PoS, LPoS, PoSA, or DPoS consensus methods and emit less CO2 into the atmosphere than PoW-powered blockchains.
