Why Ethereum is still the main front for NFT technology

Original title: Why Ethereum will continue to remain the home for NFTs (that matter)

Original link:

Original link:https://skymine.medium.com/why-ethereum-will-continue-to-remain-the-home-for-nfts-that-matter-842b72f6035b

author:

author:Sky

Translation Agency: DAOSquare

Proofreading: Shirley

Translation Agency: DAOSquare

The purpose of this article is to describe why Ethereum is still an important blockchain technology that enables people to own, acquire, sell, trade, display and create NFTs. Each topic could easily be a more in-depth article, but the purpose of this article is to spark a discussion and get people talking.

Discussions about why Ethereum will become the mainstream smart contract blockchain technology have existed for a long time. There are many articles on this topic, I will not expand here. I will mainly focus on topics in the broader blockchain ecosystem that are less mentioned in the industry, mainly involving non-fungible tokens, or NFTs.

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The current… NFT world

Progress in the NFT world currently revolves around Ethereum. This is where NFTs started, where many people got their first NFT, where many transactions happened, and where the biggest NFT creators and collectors gathered. In this arena, this is currently the only chain with the most people holding high-value NFT collections.

Recently, we have seen a proliferation of interest in NFTs. The emergence of these phenomena is not surprising to us, because we have been paying close attention to the direction of NFT for many years.

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Ethereum had a grand start

Nothing new, but this advantage does come with a huge benefit. This good start and the community of Ethereum (compared to other smart contract blockchains) is the most discussed in the blockchain technology comparison, but it is also relevant to the current discussion of NFT. Technologists, tools, history, platforms, wallets, and familiarity—all of these are important elements in how people interact with NFTs.

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For example, the famous DJ3LAU released his first music NFT to the world, and the release place is nothing but Ethereum, and this action will also happen to other artists, especially those famous artists who will shake the world body!

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Asset Protection and Security

As of today, Ethereum has proven that it is a safe and reliable blockchain technology, close to the characteristics of Bitcoin. As the value of NFT continues to grow, holders of asset value will be very cautious about where to store these assets. Just like dealing with high-value physical art, security is still required, and the need for systems that can securely protect these NFTs will only increase.

You don't want to hang your Mona Lisa in an unguarded vacation home.

NFT composability is crucial

Many readers will be familiar with compositionality in decentralized finance (DeFi). This function that can be directly created on the basis of DeFi without authorization is indeed very important, and it is also becoming one of the most powerful features of DeFi, and it is also called "Money Lego" by the outside world.

NFT Lego

NFT Lego

I think composability is very important in the NFT world. Those NFT LEGOs that enable this composable ecosystem include platforms, creators, collectors, virtual worlds, communities, etc.. not just protocols.

Virtual worlds with real asset ownership are part of the MetaVerse that appeals to the masses.

Metaverse is built on the basis of NFT. As Metaverse continues to grow, it becomes more and more difficult to separate its core from NFT.

You can see examples of NFT art about this phenomenon in virtual worlds. While these worlds are still in their early incubation stages, one of the primary uses in these environments is to showcase collectors' digital art NFTs.

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NFTs and DeFi come together

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We’ve seen developments such as Aavegotchi — a DeFi collateralized crypto collectibles platform, and NFTfi — an easy-to-trade platform for NFT-collateralized loans. MetaFactory brings NFT, fashion taste, DeFi and DAO together! These are just the beginning.

Eventually, it will become commonplace to own digital art NFTs that hold DeFi assets, including interest tokens, access mechanisms, and other NFTs. (This can be fully discussed in a separate article.)

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Other NFT platforms will link to Ethereum

Other NFT blockchains will also start to take root. I believe these platforms will also link to Ethereum and will add value to both parties in the process of participation.

To reiterate, we have seen these happening in the DeFi world. The core of DeFi lies in Ethereum, so any players who really want to participate will inevitably be linked to the Ethereum-based DeFi system.

Similarly, these things will also happen in the NFT ecosystem based on Ethereum.

There will be other blockchain technologies dedicated to NFTs that, as they mature, will provide additional benefits and convenience to the existing Ethereum NFT experience. They can even make NFT out of the circle. But they have to be Ethereum-friendly and bring value to attract more users.

The decision for collectors to place their $20,000+ NFT portfolio on another chain or on Ethereum is not an easy one. Even if the technology of this chain is more mature, and there are safe and solid cross-chain technologies in these chains, it is difficult to change people's thinking and comfort.

In the future, there will be cross-chain transactions of NFT assets, which will be used to a certain extent and eventually attributed to Ethereum, and all the core will not change.

Just like you let your cousin borrow your cherished toy to play with, and tell him to bring it back in good condition before a certain period of time before you will lend him another toy to play with.

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NFT will develop smoothly on Ethereum

At this point, many questions will be asked "How can Ethereum afford these functions?"

My answer is not Ethereum 2.0. In fact, I'd ignore Serenity entirely because it doesn't exist yet, and I know some NFT folks who say it probably never will. However, what already exists is a great deal of research, development, and progress on Ethereum Layer 2 solutions.

Ethereum Layer 2 technology will continue to develop. There will be different Layer2 solutions for different purposes. Each Layer 2 solution has its own advantages and disadvantages. For example, some will have longer and buggy fetch times, others will have shorter wait times. The key to all Layer 2 solutions is that they will have the same secure performance as the Ethereum mainnet.

Rollups are coming. There will be different Rollup technologies for different fields. For example, the increasingly cheered Optimistic Rollup may not be the best solution for NFT-related environments.

Due to the long delay in Optimistic Rollup de-falsification verification, there will be a long waiting period for uploading to the main network. For fungible tokens (ERC20), this shortcoming can be solved by paying a small transaction fee to the liquidity provider, so as to quickly obtain your assets. However, for non-fungible tokens (ERC721), it is basically impossible to solve this long waiting time through liquidity providers.

For NFT, ZK Rollup using zero-knowledge proof will have a great advantage because it has shorter latency of on-chain transactions. Once you know that the ZK proof is solid, you can commit your assets to the mainnet.

in conclusion

in conclusion

The NFT field is built on the Ethereum ecosystem, and it continues to expand. Ethereum has its disadvantages, but Ethereum also has so many benefits that NFT will still take the Ethereum ecosystem as its main position and continue to expand.

Other chains are coming, but instead of capturing the NFT market alone, other chains will link to Ethereum for user acquisition and add value to the system. These all confirm why Ethereum is still the main position of (critical) NFT technology.

(*Even if this article doesn't say so, I really want to see other platforms succeed and bring NFTs to every corner of the world!)