The Art of NFTs: How Blockchain is Utilized

Blockchain, Digital Finance, NFTs, NFTs 101

Non-fungible tokens (NFTs) are one of the hottest new tech trends. Collectors, investors, and technology buffs are already spending billions of dollars on these digital tokens, and the NFT trend shows no sign of losing steam anytime soon. Behind these fashionable digital assets, though, is the same blockchain technology that powers the world’s digital currencies.  

NFTs on Different Blockchains 

While the steps listed above are universal, there are many blockchains you can use to create your NFT. Four of the most popular NFT blockchains are Ethereum, BSV, Flow, and Solana. Here’s what you need to know about each of these blockchains when it comes to creating non-fungible tokens. 

Ethereum 

The original chain for creating NFTs, Ethereum still dominates the market and accounts for about 97% of all NFT sales. One of Ethereum’s core contributions to blockchain technology is the smart contract, a program that executes transactions on the network according to predefined rules. Smart contracts are useful in NFT transactions, as they can automatically define the terms for transferring a token. Smart contracts make it easy to buy, sell, and access NFTs on the Ethereum network.  

Although Ethereum is still the dominant force in the NFT world, it has some serious drawbacks. The biggest of these is that the Ethereum blockchain charges very high user fees while offering low transaction speed. The surge in NFT popularity has put strains on the blockchain, directly contributing to higher fees. Ethereum is also undergoing structural changes from a proof of work to a proof of stake model. These changes could cause instability in the network and breakdowns as developers implement them. 

BSV 

Bitcoin SV (BSV) was created to restore Satoshi’s vision, as defined in his white paper. It is believed that Bitcoin SV is the only blockchain that can fulfill Satoshi’s vision for ‘only one global chain’ (much like today there’s just one global Internet), built for enterprise and capable of becoming the world’s ‘new money.’  

The creators of BSV intended for it to be closer to the original idea behind Bitcoin, and for it to increase transparency while reducing fees. BSV features negligible fees and plans to reach speeds of up to 4 million transactions per second within five years. As a result, BSV is almost infinitely scalable and solves many of the problems Ethereum has. 

In addition to lower fees, BSV offers on-chain data storage that is essential for its NFT functionality. With BSV, users can create and store their NFT content directly on-chain. This makes the content more secure and safer than tokens created on other blockchains.  

Flow 

Dapper Labs created the Flow blockchain specifically as a solution to Ethereum’s high fees and congestion. Flow does away with sharding, meaning that all transactions on the Flow blockchain are compatible and operate in a single execution state. 

Flow speeds up transactions with a unique twist on the proof of stake validation model. On this blockchain, validation nodes must stake FLOW tokens to participate in the network. Unlike other blockchains, though, Flow splits the validation process into four separate node types. This allows transactions to process more quickly. 

Flow works well for NFTs and will likely become a major competitor to Ethereum. The only true downside of this blockchain is that smart contracts aren’t made immutable as soon as they are issued. Even this has its advantages, as it allows you to fix problems in contracts before upgrading to full immutability. For use cases where immediate immutability is preferable, though, this could be a minor drawback of Flow. 

Solana 

Solana is another newer blockchain that was built to accommodate NFT handling. 

One of the key selling points of Solana blockchains for NFT projects is the chain’s better sharding potential. Sharding refers to that process mentioned above (with Flow) of separating different parts of the blockchain process. Solana has evolved how NFTs are handled on its protocols by creating a sharding process that works for scalability.  

It may not surprise those researching NFT blockchains that Solana has also been hailed for low fees and fast transactions. In general, these are the benefits investors are looking for and are ultimately sought in any kind of NFT blockchain project. 

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