The era of full-chain NFT has officially opened: will it further expand the influence of Ethereum

What is a full-chain NFT?

The full-chain (omnichain) NFT is believed to be the concept that everyone has heard the most recently, but what is the full-chain NFT? What does full-chain NFT mean to Ethereum? The concept has just started pouring into cryptoeconomic discussions over the past few weeks. Much of the buzz around omnichain (full chain) stems from the rise of LayerZero Labs , a Canada-based team that created the interoperability protocol LayerZero . But if you want to dig deeper, you can check out the protocol’s white paper.

The era of full-chain NFT has officially opened: will it further expand the influence of Ethereum

Simply put, LayerZero is an information transport layer designed to allow smart contracts to easily communicate between numerous blockchains (more precisely, any blockchain). On March 31, 2022, Beijing time, LayerZero Labs announced the completion of a $135 million Series A+ financing, co-led by a16z, FTX Ventures, and Sequoia Capital, with participation from Coinbase Ventures, PayPal Ventures, Tiger Global, and Uniswap Labs, with a valuation of $1 billion.

The past few years have seen an explosion in the number of sidechains, rollups and layer 1 blockchains that support and scale multi-billion dollar applications. The future is multi-chain, but there are currently limitations. Bridging between chains can be an expensive, uncertain, and insecure process that requires users to pay gas on the origin and destination chains. The wrapped token needs to be exchanged for the native asset, adding an extra step (and transaction fee) to the user usage process. The liquidity pool of cross-chain decentralized financial applications is decentralized. Addressing these issues requires a protocol that enables interoperability and composability across chains, while unlocking new design domains and possibilities for cryptographic networks.

LayerZero is a cross-chain communication protocol designed to alleviate current full-chain activity limitations. LayerZero is a trustless protocol that enables users to send tokens or any type of message across multiple on-chain applications in a single transaction. Unlike traditional bridges that require users to lock their assets, or use a single relayer or quickly finalize transactions between chains, LayerZero is versatile enough to run on any chain, covering the full range of Security and scalability assumptions. With LayerZero, you also only pay gas once on the source chain.

The protocol was initially launched to support projects compatible with the Ethereum Virtual Machine (EVM), namely Ethereum, Arbitrum, Avalanche, BSC, Fantom, Optimism and Polygon. The LayerZero team also plans to add support for non-EVM chains such as Cosmos Hub and Terra.

The era of full-chain NFT has officially opened: will it further expand the influence of Ethereum

Comparison between full-chain, cross-chain and multi-chain

The LayerZero protocol functions like the “layer zero” Inter-Blockchain Communication (IBC) protocol of the Cosmos ecosystem, at least in a general sense. Where LayerZero stands out is its use of Ultra Light Nodes (ULNs), which propose a new model for securely transferring messages between chains in a cost-effective manner.

Therefore, LayerZero’s full-chain messaging model is different from the cross-chain model, which requires the use of bridges to directly migrate or wrap assets to other chains. For example, if I bridge ETH through Ronin to use the Katana DEX, which is a cross-chain application, my ETH is transferred directly from Ethereum to Ronin.

The full-chain model also contrasts with the multi-chain model, where independent communities with different values ​​pursue their own technology stacks. Consider how the Ethereum community is pursuing self-sufficiency through trustless transfers between Ethereum and Layer 2 (L2) scaling solutions based on its values ​​and foundations, while other alternative L1 ecosystems like Solana are taking their own unique extension method.

Advantages of full-chain NFTs: Take Gh0stly Gh0sts as an example

The era of full-chain NFT has officially opened: will it further expand the influence of Ethereum

Gh0stly Gh0sts, the first NFT project based on the cross-chain interoperability protocol LayerZero, featured the first full-chain (Omnichain) NFT series in history. A total of 7,710 NFTs were opened on the 4th for free casting on the 7 supported blockchains. Including Ethereum, Binance, Avalanche, Polygon, Arbitrum, Fantom and Optimism. This ghost-themed, free minting public domain contribution announcement (CC0) project currently has the most minting activities on Ethereum. However, all the above 7 chains have seen Gh0stly Gh0sts transactions, announcing the official opening of the full-chain NFT era. .

A full-chain NFT will solve the problem that there is no way to truly own NFT on other chains other than the NFT source chain. For example, Wormhole, the asset cross-chain bridge protocol on Solana, does not generate a real NFT on the target chain. It locks the real NFT in the Wormhole contract and then provides a synthetic NFT copy on the target chain.

However, after the Gh0stly Gh0sts ghost is born in a certain source chain, it can directly complete the cross-chain shuttle between other chains through the contract, and obtain NFT assets recognized by the contract on the target chain. The project team explained this with an example: Suppose a user decides to mint his NFT on Avalanche (perhaps to save some gas fees). He later decided to use his Gh0st as his PFP on Twitter (currently only supports Ethereum mainnet verification), so he used LayerZero’s “traverseChain” feature on Avalanche with the target chain set to Ethereum. Finally, this NFT can be verified as an asset of an Ethereum contract by the mainnet on Ethereum.

In addition, in addition to improving the problem of users paying for gas fee wars by dispersing transactions on multiple chains, Gh0stly Gh0sts also has another unique advantage. In the future, it will not be restricted by a specific blockchain ecosystem, and it can be integrated into in other blockchain games and applications.

The rise of full-chain NFTs will be unstoppable

In recent months, we can see a surge in interest in NFT applications across multiple blockchains. For example, the creators of Loot and other games have been thinking about how to track nft actions on-chain . This cross-chain tracking has been an open issue before, although more and more people are getting excited about the arrival of LayerZero precisely because of its potential to enable NFTs and related projects to go full-chain and exist in a broader way. Zooming in, you can trace the current craze around full-chain NFTs back to the recent launch of Stargate Finance, a bridging protocol and the first application to go live on LayerZero. With the activation of this first application, people and builders have started to look for other promising use cases, of which NFTs are certainly a big area of ​​interest. It is worth emphasizing that cross-chain lending, yield aggregation and trading are just the beginning. As a general-purpose messaging protocol, LayerZero can support a wide range of applications: games where NFTs exist on the Ethereum mainnet but scale transactions and activities on Rollup, governance of DAOs deployed across multiple chains, and more. 

The concept of full-chain NFT is not limited to LayerZero. For example, the Optimistic Oracle of the UMA project already has some full-chain-like features. Furthermore, I suspect that over time, with new advancements and further innovations, we will see many other different approaches to full-chain activity surfaced.

The full-chain NFT will have a long-term prospect in the future, and can make a big cake for many projects and many chains at the same time. This technology proves that NFT activity will be a key catalyst to bring into other chains. However, there may also be a gain effect of “the strong are always strong”. Over time, the full-chain NFT may eventually prove to be the most beneficial to Ethereum, which can further consolidate and expand the already extensive influence of Ethereum. At the same time, it also increases the influence of other chains in parallel, which can be said to kill two birds with one stone.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-era-of-full-chain-nft-has-officially-opened-will-it-further-expand-the-influence-of-ethereum/
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