In the second half of this year, we saw three themes dominating the cryptocurrency hype cycle: NFT, ETH killer, and Layer 2.
These three themes are useful reminders…people want cheap block space.
With the vigorous development of NFT, we will soon be seen in the Ethernet Square casting NFT will enable a new generation of collectors on pay, because they can not pay the high dollar on gas costs.
Then came the ETH killer argument-Ethereum is not scalable, let’s cast NFTs on Solana! This emotion is understandable, but a bit short-sighted.
Last month, we saw the first ray of dawn for General L2 with NFT potential, because the value locked in Arbitrum exceeded $3.5 billion.
So, we went around and went back to NFT. The NFT boom still dominates most of the cryptocurrency Twitter, and new projects still see tens of thousands of ETH transactions.
Everyone has a question?
Will NFT stay on Ethereum and migrate to L2, or will it go to the ETH killer?
Bankless resident NFT expert William Peaster thinks it is L2. So what can you do?
How to collect NFT on L2
Ethereum’s second layer (L2) expansion ecosystem has begun to flourish in recent months. It is now clearer than ever that over time, most of the NFT activities will migrate to L2.
This strategy will show how you can seize this trend and collect NFTs through the most important L2 opportunities of the moment.
- Goal: understand how to collect NFT on L2
- Return on investment: each is different, but it is a valuable experience for the future
A brief introduction to Ethereum L2
“One of the biggest challenges in the Ethereum ecosystem is to achieve low latency and high throughput under strict resource constraints (such as CPU, bandwidth, memory, disk space).”-Georgios Konstantopoulos
Ethereum is a blockchain used for decentralized applications and decentralized payments. To this end, Ethereum has made certain design trade-offs to optimize accessibility and neutrality.
What about the other way around? Due to the huge demand for Ethereum’s limited block space, the Ethereum blockchain cannot provide both low latency (that is, fast transactions) and high throughput (that is, multiple transactions per second).
At least it can’t be realized by itself.
This is where the Ethereum scaling solution comes in. Although there are a series of scaling solutions, the most prominent ones are called “Layer 2” because they metaphorically work on Ethereum. These L2s act as the external execution layer of Ethereum because they provide high throughput and low latency for Ethereum-based transactions, even though they are located outside of the Ethereum mainnet.
What’s the point? L2 helps reduce the demand for Ethereum block space by expanding the block space and provides a good transaction user experience in the process.
Importantly, some L2 inherited their security directly from Ethereum (such as Optical rollups and zk rollups), while others rely on Ethereum but are not directly protected by it (such as Polygon and Ronin sidechains).
Despite their differences, what they have in common is to act as the external execution layer of Ethereum.
Ethereum’s expansion prospects are modular. Image created by u/emkoscp
Therefore, you can think of L2 as the “extended Lego bricks” of Ethereum. They can be constructed in a variety of ways to support applications with a range of expansion possibilities. This is why Ethereum experts say that we are entering the era of modular blockchain: there is no single expansion path, but there are many possible combinations of modular solutions. (Watch this video to learn more)
Layer 2 NFT factors
Recently, one of the biggest drivers of the demand for Ethereum block space is the booming NFT ecosystem.
This ecosystem is early, just like the entire L2 field, so we are just beginning to see the magic that can happen at the intersection of NFT and expansion. In other words, believe this: NFT and L2 will continue to develop and work side by side, and over time, a large number of activities will move from the Ethereum base layer to L2.
In addition, the clumsy early user experience (UX) surrounding L2 will continue to improve. In the near future, the Ethereum wallet will make using L2s a smooth experience, so that many users will not even realize that they are using L2s.
However, we are all pioneers here. We hope to understand and try the future as soon as possible. Well, the future of NFT is L2, and this future is about to be realized here and now.
So let’s take a look at some of the main early ways you can collect L2 NFT today.
Collect NFTs on L2
As mentioned earlier, there are already a series of different L2s to choose from. Below, I will outline all the major L2 NFT collection methods I am currently using.
Immutable X is the first L2 that explicitly caters to NFTs.
Currently, Immutable X relies on StarkWare-based zk rollups technology, which is an innovation that uses zk-SNARK encryption to prove that many off-chain transactions are “in batches” on Ethereum. In the future, Immutable X will adopt the “volition (voluntary)” mode, and users can choose between the “zk rollup” mode and the “validium” mode. Validium L2s processes off-chain transactions and data.
Importantly, Immutable X has an active market and is now available.
If you are interested? Here is how to participate in Immutable X:
- Go to Immutable X Market and click “Connect Wallet”.
- You will be prompted to set the Immutable X key. Press “Connect Wallet” again. Your MetaMask wallet will ask for the address you want to connect to. Then pick the address of your choice.
- Complete the login and setup process. Then deposit ETH into Immutable X. Upon completion, you will be able to start collecting from some of the early franchise projects available on Immutable X, such as Gods Unchained and Guild of Guardians.
SoRare is a global fantasy football game. Sports trading cards are built by NFT and StarkWare-based zk rollup, not paper (or anything that is now used in ordinary fantasy sports applications).
You can collect Sorare cards in the following ways:
- Go to Sorare and complete the registration/login process.
- Enter the password to protect your Sorare wallet.
- Then go through the club creation process, as shown in the following figure:
- Choose your favorite club to start your “starter pack”, then open the pack and display your original normal card.
- Next, join your first league from the options provided and set your starting player.
Now you can go to Sorare market.
Smol Puddle is an experimental and unaudited NFT market based on Arbitrum One. Due to its experimental nature, it should be treated with caution. But I want to present it here to emphasize the early examples of the NFT market based on optimistic rollup technology.
If you are interested in trying, please use a test wallet and a small amount of ETH.
You need to bridge the funds to Arbitrum first. Upon completion, you will go to Smol Puddle, connect to your wallet, and then switch to the Arbitrum network. Then, you can buy from the existing list just like from any NFT market.
Earlier this year, the popular NFT game Axie Infinity launched its customized Ronin sidechain, which is customized to promote the breeding and collection of the cute Axie monsters in the franchise . Since then, Axie Infinity has developed rapidly.
To start using Axie Infinity on Ronin, you can follow these steps:
- Create a Ronin wallet.
- Bridge ETH on the Ronin Bridge.
- Start collecting your Axie on the Axie market.
OpenSea is the world’s leading NFT trading market. Like many NFT projects this year, OpenSea has begun to implement a multi-chain strategy, starting with support for the Polygon PoS sidechain.
Before starting, you need to deposit ETH and/or MATIC via Polygon Bridge v2. Once you are done, you can navigate to the OpenSea market and select Polygon under the “Chain” category in the left sidebar. Then you can shop, just like on the mainnet.
Over time, more and more blockchain activities will “move up” to L2, the external execution layer. For the same reasons as others, NFT users will increasingly flock to these solutions: very fast and very cheap transactions.
Therefore, the time to experiment with L2 NFT is ripe, because the L2 era has finally arrived, and a large number of novel early opportunities have begun to emerge.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/how-to-collect-l2-nft-in-the-early-stage-when-the-ethereum-l2-era-is-coming/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.