{"id":587,"date":"2022-11-24T15:33:23","date_gmt":"2022-11-24T15:33:23","guid":{"rendered":"http:\/\/78.47.81.216\/?p=587"},"modified":"2022-12-19T09:32:10","modified_gmt":"2022-12-19T09:32:10","slug":"case-study-why-is-ethereum-used-for-nfts","status":"publish","type":"post","link":"https:\/\/blog.ag.qubiq.cc\/?p=587","title":{"rendered":"Case study: Why is Ethereum used for NFTs?"},"content":{"rendered":"\n
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Looking through dozens of NFT collections on NFT marketplaces, you may have noticed that most of them are Ethereum-based. Why so? Let\u2019s try to figure it out.<\/p>\n\n\n\n

How it all started<\/strong><\/p>\n\n\n\n

Ethereum network was the first to support NFTs with its ERC-721 standard, which means the first real NFT artworks were born on its blockchain.<\/p>\n\n\n\n

In October 2015, the first NFT project called Etheria was launched at Ethereum’s developer conference in London. Etheria included 457 tradable, non-fungible tiles. They remained unsold for five years until March 2021, when interest in NFTs sparked a buying frenzy. Eventually, Etheria NFTs were sold out for a total of $1.4 million.<\/p>\n\n\n\n

Then, more and more Ethereum-based collections started to appear in the NFT world, with Crypto Punks and Bored Apes on the top of the list.<\/p>\n\n\n\n

Why do NFT creators choose Ethereum?<\/strong><\/p>\n\n\n\n

Ethereum\u2019s blockchain is currently the most widely used, leading among other blockchain networks. As a result, creators can sell their NFTs for a substantially higher price and find more buyers, compared to other platforms.<\/p>\n\n\n\n

The reason is not only Ethereum\u2019s worldwide popularity, but also its highly-secure network and data architecture. Bulk of NFT projects are running on ERC-721 coins, a standard developed by Ethereum.<\/p>\n\n\n\n

In addition, by minting your NFTs on Ethereum the blockchain, you get wider access to the market, since virtually all crypto wallets and NFT marketplaces support (or are built on) Ethereum network.<\/p>\n\n\n\n

How many NFTs are on Ethereum?<\/strong><\/p>\n\n\n\n

There are more than 80,000 NFT collections on the Ethereum blockchain, and this number is constantly growing. Also, nearly 5% of all Ethereum addresses hold one or more NFTs.<\/p>\n\n\n\n

Are there any disadvantages?<\/strong><\/p>\n\n\n\n

Of course, such popularity has its price. High volume of network traffic inside the Ethereum network causes a significant transaction backlog. It leads to a tangible increase in transaction and, sometimes, minting fees. That\u2019s why today Ethereum is not the best blockchain for beginning NFT artists.<\/p>\n\n\n\n

For example, to list an NFT on the most renowned Ethereum-based marketplace, OpenSea, will cost you at least 0.2 ETH. You also have to pay fee when someone buys your digital art.<\/p>\n\n\n\n

Other blockchains<\/strong><\/p>\n\n\n\n

Because of the Ethereum blockchain’s limitations, NFT artists are turning to other solutions. Among them \u2014 Solana blockchain and BNB Smart Chain by Binance.<\/p>\n\n\n\n

It\u2019s worth noting that Solana-based NFTs are getting more attention and recognition in the industry. The network is often called \u2018Ethereum-killer,\u2019 and here we explained it if really is.<\/p>\n\n\n\n

All in all, transactions on Solana usually cost less than a dollar, so many NFT projects and collectors have migrated to its blockchain for scalability and cheap fees.<\/p>\n\n\n\n

So\u2026<\/strong><\/p>\n\n\n\n

Even with its limitations, there\u2019s no doubt that Ethereum is the largest ecosystem for NFT, and the majority of the investors are looking to buy Ethereum-based digital arts. <\/p>\n\n\n\n

Ethereum takes the lead with a much bigger trading volume than Solana or BNB Chain. On the other hand, there\u2019s also a huge supply of low-rated NFTs that no investor would like to buy.<\/p>\n","protected":false},"excerpt":{"rendered":"

Looking through dozens of NFT collections on NFT marketplaces, you may have noticed that most of them are Ethereum-based. Why so? Let\u2019s try to figure it out. How it all started Ethereum network was the first to support NFTs with its ERC-721 standard, which means the first real NFT artworks were born on its blockchain. […]<\/p>\n","protected":false},"author":7,"featured_media":588,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[64,68,39],"authors":[37],"class_list":["post-587","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-highlighted","tag-case-study","tag-ethereum","tag-nft","authors-alphaguilty"],"acf":{"reading_time":3},"author-name":"AG Content Manager","suggested-articles":[{"ID":1092,"post_author":"7","post_date":"2023-03-03 10:21:14","post_date_gmt":"2023-03-03 10:21:14","post_content":"\n

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Many people have already heard about the Sui blockchain<\/strong> and the Sui platform<\/strong>. It is hard to deny that interest in blockchain technology<\/strong> and Web3 <\/strong>has grown incredibly over the past year. So, blockchain development<\/strong> and Web3 <\/strong>are cutting-edge fields. As the overall value of the blockchains <\/strong>market continues to grow, this interest is unlikely to wane.<\/p>\n\n\n\n

But what about Sui<\/strong>? Not surprisingly, curiosity about Web3<\/strong>, smart contracts<\/strong>, and blockchains <\/strong>has led to the launching of new blockchain platforms<\/strong> and projects. Another addition is the Sui platform<\/strong>.<\/p>\n\n\n\n

What is the Sui blockchain<\/strong>?<\/h2>\n\n\n\n

Sui <\/strong>is a PoS, decentralized, and L1 smart contracts<\/strong> blockchain platform<\/strong> designed for scalability and high-speed transactions<\/strong>. Sui <\/strong>has several blockchain <\/strong>innovations, such as more efficient transaction <\/strong>sequencing, which allows for a significant increase in blockchain <\/strong>throughput compared to previous generations. <\/p>\n\n\n\n

In other words, Sui <\/strong>is a next-generation smart contracts<\/strong> platform based on Move. Sui <\/strong>is designed from the ground up for billions of Web3 <\/strong>users. Also, Sui <\/strong>will support up to 120,000 transactions <\/strong>per second in the first phase.<\/p>\n\n\n\n

Who are Sui blockchain\u2019s<\/strong> investors?<\/h2>\n\n\n\n

Mysten Labs is responsible for the Sui blockchain development.<\/strong> The Sui <\/strong>team of developers <\/strong>includes many experienced designers, analysts, and engineers. Many of them worked at Novi Research before Sui blockchain development<\/strong>.<\/p>\n\n\n\n

Investors of Sui blockchain<\/strong> include a16z crypto, Jump Crypto, Apollo, Binance Labs, Franklin Templeton, Coinbase Ventures, Circle Ventures, and other strategic partners.<\/p>\n\n\n\n

What makes the Sui blockchain <\/strong>unique?<\/h2>\n\n\n\n

A special feature of Sui <\/strong>is the use of the special language, Move. It was created by a team of developers <\/strong>for the Diem blockchain<\/strong>. But why is the Sui blockchain <\/strong>unique? Let's highlight the key features of the Sui blockchain<\/strong>:<\/p>\n\n\n\n