When NFT meets Layer 2, what new narrative can it bring?

September 16 Today, “Everything can be NFT” has become a classic slogan, and NFT has also become a new narrative of heated discussion and attention from all walks of life, and it is the biggest outlet in the encryption industry.

bhMJ7rTVuDb5rjFlJfztjDryikzdB3jvODe6L2rs.png

However, as we all know, the vast majority of NFT smart contracts are still built on Ethereum , and as this vertical market becomes more popular, related trading activities are gradually increasing. However, users have to face many limitations of the Ethereum network, such as high gas fees and transaction fees, slow confirmation speeds, block size limitations, single point failure issues, etc., which have become the shackles that restrict the further development of NFT. In addition, factors such as the high cost of casting NFTs and the difficulty of intercommunication between NFT public chains are also affecting the development of NFTs.

Nevertheless, it has to be admitted that Ethereum is still the current underlying blockchain with the most complete mechanism and richest ecology. NFT projects may not be able to leave Ethereum in a short period of time. So in this case, is there any way to effectively solve the various problems encountered in the development of NFT?

Can Layer 2 effectively solve the various problems encountered in the development of NFT?

We can regard Ethereum as the lowest-level infrastructure of NFT, so Layer 2 is the best trading venue for NFT built on this “foundation”. Various NFT project parties can cast and create NFT works according to their own characteristics. In addition, Layer 2 can also attract users, speculators and collectors to enter the market, attract traffic for various projects, and improve the liquidity of NFT.

The advantages of Layer 2 are self-evident. As a key part of the Ethereum ecosystem, every market outbreak needs its help. Previously it was DeFi, but this time it is undoubtedly NFT.

In fact, there are many NFT protocols worth paying attention to in the NFT platform based on Ethereum Layer 2. These agreements allow anyone to build their own decentralized markets, blockchain games, and other dApps. Some can also implement NFT issuance, transfer, and trading functions on Layer 2, helping users to avoid high fees, and quickly and in real time. Trading. Not only that, there are even some platforms that can use zero-knowledge proofs and other technologies to ensure the consistency of Layer 1 and Layer 2 states through a large number of calculations, support the NFT recharge of the Ethereum main chain to Layer 2, and the NFT of Layer 2 withdraw to the Ethereum main chain, greatly Save the user’s use and transaction costs.

Some NFT platforms focus on protocol API design, while others focus on the construction of their own protocols and applications. In contrast, the former is not very friendly to individual users, because it generally uses the official NFT to enter the market transaction function, and other users need to contact the official to submit the information to send the NFT. Seriously, it also sacrifices data visibility and reduces the security of the interaction between L2 and L1. The latter has a more prominent advantage in terms of user-friendliness. Their application program interfaces are open source to all projects, and are generally constructed by various methods such as Web, App, and API. The user convenience is relatively high. The threshold is low. What’s more worth mentioning is that the latter is also more advantageous in terms of inclusiveness. They can support the existing L1 NFT to be deposited into L2, so that L1’s native NFT can be directly traded on L2, which will help players save gas costs and increase transaction speed, and bring a larger player base into the ecosystem. In addition, storing all NFTs in the same L1 smart contract can also effectively eliminate the need for NFT creators to deploy smart contracts in L1.

With the gradual introduction of various plug-ins and mobile apps on such platforms, users of other platforms will be able to release NFTs with one click, and even expand to auctions, blind box sales and other functions in the future.

We found that those “one-echelon” NFT platforms based on Ethereum Layer 2 actually have the same vision. They all want to create a powerful Layer 2 “NFT world” by distributing and creating high-quality NFTs, with complete basic layer functions. It can meet the full capabilities of artists, celebrities, brands, Internet celebrities and intellectual property rights to create, trade and transfer NFTs on their platforms. When it comes to the R&D team of these platforms, the lineup cannot be underestimated. It includes personnel with extensive DEX, smart contract and NFT social network platform development experience, mainly early evangelists and senior developers in the blockchain industry. Wait. By issuing and creating high-quality NFTs, these teams have improved the quality of the platform, expanded the ecological territory of the NFT, and created a universal and friendly Layer 2 NFT meta-universe.

Summarize

As more and more high-quality NFT projects begin to explore other public chains besides Ethereum, user transactions of projects not developed on Ethereum will be restricted to their own public chains, just like ecological islands. It is difficult to capture the huge number of existing users on Ethereum. However, if the existing NFT public chain can be linked to Ethereum and combined with the Layer 2 solution to reduce transmission costs, it can not only increase the mutual value of both parties, but also achieve the purpose of “user interoperability” and achieve a win-win situation.

One of the future development trends of the Layer 2 NFT platform will be that NFT projects on other public chains can be directly connected to projects on Ethereum, realizing the perfect connection between NFT’s own functions and Ethereum. This can not only improve the scalability of NFT projects, but also bring a large number of users in the Ethereum system to excellent NFT projects, and it may even make more excellent NFT projects out of the circle quickly. Through the Layer 2 NFT platform, in the future, excellent products on the “island” can be continuously delivered to Ethereum, bringing a steady stream of incremental users to the NFT market.

Although the current NFT market value is still relatively small compared to the size of the entire crypto market, no one can ignore its huge development potential. As the NFT platform based on Layer 2 gradually matures, it will inevitably bring more users and greater development to this emerging field that is in the “development stage”, and a complete NFT world is about to emerge.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/when-nft-meets-layer-2-what-new-narrative-can-it-bring/
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.