What makes exchange public chains impact the NFT ecosystem?

NFT is leading the digital currency industry from niche circles to a broader general audience by effectively integrating with DeFi while leveraging the digital currency bull market wave to get rapid growth.

What makes exchange public chains impact the NFT ecosystem?

The year 2021 is the “Year of NFT” and the phrase “Everything is NFT” seems to have become the signature solgan of the community. Overnight, it has become a hot topic of discussion both inside and outside the community. As a form of digital currency that can interface with the real world, NFT is leading the digital currency industry from niche circles to a broader general audience by effectively combining with DeFi while leveraging the digital currency bull wave to get rapid growth.

The overall market situation this year has been positive, especially in mid-April when the total market capitalization of NFT exceeded $30 billion for the first time, hitting a record high. However, in May, the entire digital currency market suffered a “Black May” resulting in the NFT market cap being cut in half, but as the market gradually recovers, the NFT industry is slowly bleeding back, and the total NFT market cap and trading volume are gradually rebounding.

However, as most NFT projects are still running on the Ether blockchain at this stage, many users are still troubled by its limitations, high Gas cost and network capacity problems have not been fully solved, while improving the performance of Ether has been the direction of NFT and the whole cryptocurrency industry.

At this stage, it will take a long time for Ether 2.0 to complete deployment, while some DeFi and NFT projects have already started to explore migration to other blockchains, including some exchange public chains and public chains specifically for the NFT market.

What makes exchange public chains better than traditional public chains in the NFT space?

On balance, exchange public chains do outperform ethereum in terms of performance and transaction costs, with faster network exports and higher average daily transaction volumes, in addition to having more active wallets than ethereum. Generally speaking, the miner’s reward for exchange public chain products is Gas, and it will be distributed according to the miner’s collateral ratio.

Currently, the diversity of project types on exchange public chains is already very high, covering a dizzying array of crypto vertical ecologies and key projects. Not only that, crypto projects with over $1 billion in lockups on public chains abound, compared to 11 crypto projects with over $1 billion in lockups on ethereum, but these projects have basically been online for as long as three years. The fact that they have attracted so much lock-in volume in just a few months shows that exchange public chains do have special advantages in terms of DeFi and NFT support.

So why exactly do these public chains stand out in the NFT circuit and what exactly are the steps they have taken?

First, these public chains will launch gas pedal programs and will focus on on-chain NFT ecosystems as well as innovative NFT+DeFi development and high-performance infrastructure building. In addition, they will focus on potential opportunities that have not been noticed by mainstream voices, screen out eligible project teams, and make incentives in terms of bonuses, community and investment for the final selected project teams.

Not only that, the exchange public chain will also support some high quality hackathon events and will even actively support Ether developers without seeing Ether as a competitor. Therefore, in the DeFi world, only a hundred flowers blossoming with their own advantages can stimulate more innovation, not just a single one, so that a healthy ecology can be built.

At this stage, the NFT ecology on the exchange public chain is still in the early development stage, mainly covering some vertical ecological fields such as sweepstakes, DeFi, games, and art. Generally speaking, lottery is an NFT use case with strong random component, which can also be used to provide rewards; while DeFi is an NFT use case for finance, as a way to increase rewards; game use cases usually take advantage of the public chain’s performance to start NFT auctions and pre-sales; art use cases have now become a major NFT dominant category on the public chain, and we see a more diversified player base, and art NFT diversity has become far superior to the three eco-categories of games, DeFi and sweepstakes.

Art and gaming NFTs seem to be better suited for exchange public chains than ethereum. And as more and more NFT players try to enter exchange public chains, the competitive nature is bound to increase further. Of course, several of the major NFT eco-categories and use cases mentioned above will also see changes, and some other more sustainable NFT eco-categories and use cases will make their way to exchange public chains.

Is the exchange public chain perfect enough for NFT?

The success of some projects on exchange public chains seems to be due in large part to their “copying” of similar projects on ethereum, and it remains to be seen whether this problem will be magnified further in the NFT space, as such attempts demonstrate to some extent the drawbacks of open source technology, and it is unclear whether intellectual property rights will be involved, and whether imitators will devalue the original NFT.

At the same time, there may be some potential problems for exchange public chains in the competitive market, for example, the crypto community still has doubts about the degree of decentralization of public chains and the road to commercial success. On the issue of decentralization, we see that the growth of exchange public chains is actually driven by a few DeFi and NFT projects with more concentrated lockup and transaction volume, and the degree of centralization is relatively high, so this may be a fragile foundation for public chains in the long run.

Conclusion

The crypto community is fortunate to be in the “Year of NFT”. As the exchange public chain infrastructure continues to improve, many new ideas and projects related to NFT will accelerate.

The advantages of exchange public chains are expanding further, which will definitely have a profound impact on the NFT ecosystem. And with the support of exchange public chains, NFT is likely to have further innovations in a macro sense.

Perhaps in the near future, all platforms will be interoperable, NFT can be used across different ecosystems, and all exchange public chains will interact seamlessly with each other and with Ether; perhaps in the near future, the next real work by a crypto artist will be partially owned by people, and then NFT investors will be able to get a return when they resell it; not only that, we may also see NFT mortgages in the near future, which means people can mortgage (lend) NFT after they buy it and use it to buy other assets.

In this dynamic and promising world of NFT, let’s wait and see who will turn the past upside down and become mainstream!

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-makes-exchange-public-chains-impact-the-nft-ecosystem/
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