What is a Multi-chain NFT marketplace?
Before getting onto multi chain nft marketplace, lets know what is multi chain NFTs?
What is Multi chain NFT
NFTs are generally minted with any one of the blockchain frameworks such as ethereum, Binance smart chain, polygons etc. But multi chain NFTs are minted by employing all these blockchain technologies together. This is mainly done for eliminating the barriers like interoperability, high gas fees and Energy consumption.
What is multi chain NFT marketplace
Currently some of the NFT marketplaces operate on the single blockchain technology. It allows the buyers to get the NFT only using the native cryptocurrency that the blockchain is built with. When the NFT marketplace is equipped with multiple blockchain chains to mint, trade, or exchange, it is called a multi chain NFT marketplace.
Why multi chain NFT marketplace?
As we said, multi-chain NFT marketplace exist here to make the crypto collectibles widely adopted without limitations. It makes the NFT landscape more interoperable, sustainable, and less energy consumable in future. Here’ how
When you mint the NFT, the operational scope should not be defined in a single blockchain. This is where interoperability comes in. For example, you usually play the NFT game with in-game assets that are available in the form of tokens. If you want to use this NFT on other interesting metaverse, single chain NFT’s don’t always facilitate this since both of them are not made to inter-operate with each other. Cross promotion becomes impossible too in a single chain marketplace.
Multi-chain NFTs on the other hand can connect between the other NFT projects that share the same blockchain chain.
2. High gas fees(Sustainability)
Most probably ethereum is the widely adopted blockchain network adopted for the majority of the NFT projects. But in reality, it has a major fall back in terms of sustainability. Because, ethereum charges high gas transaction fees for every successful transaction. In case of high value transactions, the seller has to pay a large sum of money in gas fees.
Gas fees is defined as the transaction cost that is charged by NFT trading platforms when the trade gets completed. It is usually the smart contract execution cost that occurs on the ethereum network.
When the NFT marketplace has multiple blockchains to support, the users have more options to choose the NFT based on their preference by cutting maximum gas fees. Polygon is the latest emerging framework that processes maximum transactions per second with minimum gas fees.
3. Energy consumption
NFTs are said to impact the environment through the use of blockchain technology. When an NFT is minted on an ethereum network, an average of 260 kilowatt-hours of electricity is used. This is way more than enough to cause the environmental impact. Usually, ethereum uses a proof of work method to validate the transactions that are recorded on blockchain.
Instead, if NFTs use proof of stake consensys as the Polygon, Cardona, Solana blockchain uses, the energy can be cut into low. This is where multi-chain NFT are exist to eliminate the barriers in the current NFT landscape.
When considering the energy impacts for the environment, multi chain NFTs are the must go for entrepreneurs who wish to start a zero emission NFT marketplace. Otherwise, it would harm both the NFT community as well as the environment.