How to Choose The Best Blockchain For Your NFTs?
By Kapil Rajyaguru
Equality for all humans may be the guiding spirit running through continuously evolving social chains across all democracies, but as far as blockchains are concerned, not all of them are created equal. Some are good for your (non-fungible token) NFT projects, some not so good. So, what factors should you consider while choosing a blockchain for your NFT project? Here we go:
Transaction Cost
Users must pay this charge to complete transactions on the blockchain.
A lower transaction cost results in a more accessible and inexpensive NFT economy, whereas a larger transaction cost results in more expensive and less accessible NFT generation and trading.
The cost of a transaction is influenced by several variables, including the native token’s supply and demand, network congestion, and fee structure.
Transaction Speed
The rate at which blockchain confirms and processes transactions is called transaction speed.
A faster transaction speed results in a quicker and more seamless customer experience, whereas a slower transaction speed results in potentially congested areas and lengthier wait times.
The consensus process, block size, and network capacity of the blockchain all affect transaction speed.
Smart Contract Functionality
The blockchain’s capacity to carry out programmable logic, which may specify the laws and behaviors of the NFTs is known as Smart Contract Functionality.
More customizable and flexible NFT development and administration result from higher smart contract functionality, whereas more constrained and standardized NFT features result from lower smart contract functionality.
The operation of smart contracts depends on several elements, including the blockchain’s security protocols, development tools, and programming language.
Interoperability And Compatibility
This means the degree to which blockchain can integrate and communicate with other blockchains and platforms.
A more diversified and cooperative NFT ecosystem results from more compatibility and interoperability, whereas a more isolated and fragmented NFT market results from poorer compatibility and interoperability.
The standards, protocols, and bridges that provide cross-chain communication and exchange are among the elements that affect compatibility and interoperability.
Based on the above criteria, here are some of the popular blockchains for developing NFTs.
Ethereum
Ethereum is the most popular blockchain for NFTs because of its low transaction costs and enhanced scalability.
It also offers excellent compatibility and interoperability.
However, because of network congestion, Ethereum also has slow transaction speeds and high transaction fees.
Binance Smart Chain
Binance Smart Chain (BSC) is also one of the fast-growing blockchain for NFTs.
BSC’s proof-of-stake consensus mechanism offers high transaction speed of up to 300 transactions per second (TPS).
BSC also provides low transaction cost with its native token, BNB, which has high demand and low supply.
However, BSC also has its downside such as its centralization risk due to its reliance on world’s largest cryptocurrency exchange Binance.
Flow
Flow is considered by many as an innovative blockchain for NFTs.
It offers high transaction speed and low transaction cost with its native token, FLOW, which has a fixed fee schedule.
Flow also offers high interoperability and compatibility with Ethereum via its Wormhole bridge.
However, Flow suffers from lack of centralization, lack of liquidity and lack of adoption.
There are lot more blockchains such as Solana, Cardano, Polygon and Tezos. The trick is to choose one that best serves the needs of your NFT project.
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