A Guide To NFTs Marketplace

It is not enough to buy Ethereum before you can access or acquire NFTs. Sometimes we must go beyond what we see to understand how these things work. To better understand the NFT ecosystem, you must first understand Ethereum itself. Although almost all the NFTs run on the Ethereum blockchain, they are not specifically designed for it.

Today, there have been stories that developers of Shiba and bitcoin are working on introducing an NFT marketplace run on bitcoin and Shiba, respectively. The current alignment of Ethereum with an NFT marketplace is just a clear case of “the first man takes all the glory” scenario. Since Ethereum powers the first NFT marketplace, it is only natural if everybody starts attributing it to Ethereum.

Before we delve into specifics, let’s explain what an NFT marketplace is and how it works. An NFT stands for Non-Fungible Token, and “Fungible” is another way of saying “interchangeable.” So, when we refer to a marketplace as a non-fungible, it means that the tokens and items used in such a place cannot be interchanged. Items on NFT marketplaces are usually rare. They aren’t meant to be seen everywhere and can’t be duplicated. Let’s illustrate a clear example of items you can see on an NFT marketplace. Imagine selling a signed jersey by Ronaldo.

Anyone can sign a jersey, but Ronaldo himself signs it makes it NFT-worthy. So, if you want to sell the same item, the NFT should be the perfect place to display it. But then, you must buy Ethereum to access it. Buyers will be paying with Ethereum, which makes it even more promising. Therefore, you see many people trying to sell their stuff on an NFT marketplace. Since 1 ETH outvalues $1000 (which is still a lot of money in fiat), NFT sellers always jump into that option because it gives them more opportunities to earn more.

NFTs Ethereum-based Platforms and the Need to Buy Ethereum

The truth is that NFTs are built to be compatible with Ethereum-based projects, hence the need to buy Ethereum before making a purchase. The incredible potential of NFTs gave rise to the creation of the ERC-721. It was created to solve the need for special tokens. Because of the rare nature of the ERC-721 standard, it is more precise and has a different value than the rest of the tokens on the smart contract. Meanwhile, the Etherscan NFT Tracker is currently one of the top NFTs on the Ethereum platform by the number of transfers.

As much as people always want to attribute Ethereum to NFTs, the question now is, is Ethereum everything you need to make an NFT? Of course, it’s not. It is not a criteria to create an NFT. Although one can always buy Ethereum to access only an Ethereum-powered NFT. Some of them include Cardano (ADA), Solana (SOL), Tron (TRX), Tezos (XTZ), and BNB Chain (BNB), which can be used as an alternative for developing an NFT platform.

So, as you can see, even though buying Ethereum remains one of the popular ideas on people’s minds, it is not the only one, just the most popular. And mind you, each platform has different transaction fees: they charge differently. For example, the fee charged on an Ethereum-powered blockchain is not the same as those on Cardano, Solana, or Tron blockchains.

How most NFTs are Ethereum-powered

As we have previously said, the first person to reach the peak takes all the glory. That’s exactly what happened in the case of Ethereum. The second reason is that Ethereum is a leading blockchain network, so when it was all set to launch an NFT platform, the Ethereum blockchain was top on the list. Again, before now, NFTs were very expensive outside the blockchain system, so introducing them to the network made it a lot more affordable – it would be wrong for any NFT creator not to take advantage of the system.

Another reason why Ethereum often powers NFTs is the fact that it is the most secure. It doesn’t just protect those who buy Ethereum and all transactions that go through the NFT ecosystem. Also, the Ethereum blockchain guarantees the safety of the DeFi marketplace, which has many of its NFT projects managed as ERC-721 coins. Don’t get it wrong, not that others are not safe, but many positive reviews have vindicated the Ethereum blockchain.

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect those of Geek Vibes Nation. This article is for educational purposes only.