Choosing a blockchain for NFT
What to know before choosing a blockchain for NFT?
Blockchain makes it possible to tokenize a wide variety of assets, with numerous uses, i.e. entertainment, logistics, ticketing, real estate, etc. Thus, not all blockchains will fit equally for developing NFTs, you may have in perspective. There are several criteria to consider when searching for the best platform:
Ideally, you’d need a blockchain supporting a high transaction rate, as this may prove crucial to the success of your NFT project. Too lengthy transactions create a bottleneck, forcing users to choose: to pay extra fees to prioritize their transactions or risk a long wait. This creates an opportunity for potential transaction forging, which you don’t want.
Cost of transactions
All blockchain transactions cost money. And let’s be honest — most NFTs are unlikely to sell for hundreds of thousands of dollars. If you want to keep your costs in check in your NFT development, it’s always wise to compare the fees.
NFTs are marketed and executed through smart contracts that automatically define trade terms between buyer and seller. A robust blockchain must have secure and error-proof contracts. Otherwise, it could lead to scams. So, blockchain must have security measures in place.
Needless to say, ultra-secure blockchain is what you need, unless you are willing to risk losing your resources and data. Look for a blockchain with an alternative consensus mechanism, such as PoS vs PoW, since the latter is more vulnerable to attacks.
Forking – using the code base of a software project as a start for another, independent of the original.
The appeal (and value) of NFTs lies in their uniqueness and rarity. Hard forks can lead to NFT duplicating, which would drop the value of the original NFT. Forking is an important factor, and you’ll likely want to find fork-proof solutions.
What are the best blockchains for NFT development?
+ Most used blockchain for NFT minting
+ Simple and easy to use
+ Used by leading NFT trading platforms (OpenSea, Rarible, and Decentraland), all using ERC721, one of the most reliable standards NFT-wise
- Gas fees may skyrocket with demand increase, causing congestion
- Proof-of-Work is too energy-intensive for NFT minting and transactions calculations
Binance Smart Chain
+ Supports Ethereum DApps via Ethereum Virtual Machine (EVM)
+ High transaction rates
+ Low transaction fees
+ Supports BEP2E, ERC-20 (ETH), as well as its native Binance Coin (BNB)
- Reliant on Ethereum
- Most innovation is a carry-over from Ethereum
+ Integrated into OpenSea, the world’s largest NFT marketplace
+ Offers faster scalability
+ Features “Lazy Minting” — No upfront costs for creating an NFT
+ Low transaction fees
+ Fast transaction rates
- Dependent on Ethereum
- Faces against serious competition
+ Makes serious competition to blockchains like Ethereum and Cardano
+ Has a solid reputation as a highly efficient blockchain
+ Capable of processing 65,000 TPS while maintaining a commission of less than $0.01
+ Combines Proof-of-History (PoH) and Proof-of-Stake (PoS) consensus mechanisms
+ Highly scalable
+ Low-carbon alternative to other chains
- Not fully decentralized (only 1,000 validators vs 200,000 validators on Ethereum)
- Coin supply is not fixed — fears of potential inflation risks
+ Built with scalability in mind
+ DApps oriented
+ Simplifies becoming a validator (aka a miner)
+ Eco-friendly and lower costs due to the use of Proof-of-Stake
+ Smart-contracts can be updated before going immutable
- Hard to find resources on Flow
+ Built as an eco-friendly blockchain
+ High throughput — 65,000 TPS
+ Rather low transaction fees
+ Compatible with EVM (Ethereum)
- Insufficiently decentralized (few validators)
- Uses new programming language Plutus with no proven use case
+ Focuses on simplifying NFT adoption
+ Zero gas fees for minting or launching a play-to-earn ecosystem
+ Supports currently 9,000 TPS
- Relatively new coin (IMX)
- Not available on many exchanges
- Stiff competition
+ Unique Proof-of-Stake mechanism requiring minimal computational resources
+ Community governance by Tezos token holders
+ Encourages stakeholder participation with rewards for contributing to network stability and security
+ Features a number of NFT trading platforms, including Hicetnunc and Kalamint
- Delay in token issuance causes a portion of users to miss out on their rewards
- Lack of funding due to low XTZ token popularity
- Reputational issues
+ Ultra-low transaction fees (<$0,001)
+ Supports 1,000+ TPS
+ Ethereum-compatible via EVM
+ Uses Proof-of-Stake as an eco-friendly mechanism
- Mostly entertainment-oriented
- Relatively new blockchain
As can be seen from the above, blockchains can offer different functionality with a slight tilt towards a particular focus, varying from one to another. Additionally, various blockchains offer their own integration and interaction with the market, as well as their NFT use capabilities. This too can be crucial in choosing NFT platforms.
These are critical features to look for in a blockchain for NFT development. Still, have questions? Ask our experts!