All the amazing features of a non-fungible token would be impossible to accomplish without the NFT blockchain technology. This vital factor significantly imparts the world of NFTs massively. Non-fungible tokens use cryptography to store a digital-based ledger, recording the ownership history of a specific craft. The combination of NFTs and blockchain technology introduced digital careers to the opportunity of monetizing their skills. Although NFTs use similar blockchain technology to cryptocurrencies, they can't be regarded as a currency. There are a couple of essential elements an NFT must have:
Let's look at the roles NFT blockchain technology plays in the past, present, and future of non-fungible tokens.
How does NFT Blockchain Work
A considerable amount of NFT blockchains are built on the Ethereum network. Regardless, NFTs can still be built on some other blockchain technologies.
The blockchain implements a ledger to verify an NFT and its unique ownership. The identity of the NFT creator is a license to use the associated digital content, albeit it rarely grants the buyer copyright. In some contracts, you're only authorized to use the NFT for personal, non-commercial purposes. Meanwhile, others permit the commercial use of their digital assets. Some token standards are specifically developed to accommodate diverse blockchain functions.
Using the ERC-721 standard, Ethereum became the debut blockchain to support non-fungible digital collectibles. ERC-721 is a transferable Solidity smart contract standard. Thus, developers can copy a reference implementation to generate more recent ERC-721-compliant contracts. ERC-721 includes essential techniques for tracing the creator of an NFT. Also, it provides authority for the inventor to transfer the digital assets to buyers.
Presently, ERC-721 is the most extensively utilized blockchain in the NFT space. NFT is now a force to reckon with in the crypto industry. Therefore, more blockchains are emerging to incorporate or plan to support them. Continue reading to find out more.
Examples of NFT Blockchain Technology
Despite how simple Ethereum makes NFT usage, its gas fees, simply called transaction fees, are through the roof for most people. Therefore, there is a wide range of layer two alternatives for Ethereum. These blockchains support NFTs and are less expensive to use:
Bitcoin Cash: BCH is a cryptocurrency that supports NFTs and runs the Jungle NFT marketplace.
Polygon: Polygon, previously called the Matic Network, uses a proof-of-stake consensus mechanism. Significant NFT exchanges, including OpenSea, back it. Essentially, it allows inventors to create NFT collections at no cost.
Solana: The Solana blockchain supports unique digital assets through their recently established NFT marketplace, Solanart, with over 1500 daily sales.
Flow: NFTs are backed by the Flow blockchain as well. It is primarily used in the crypto game sector of NFT. Also, it uses a proof-of-stake blockchain model to confirm transactions.
Immutable X: Immutable X is an Ethereum layer two protocol created exclusively for NFTs. In addition, it uses ZK rollups to quash transactions or gas fees.
Cardano: In March 2021, Cardano established native tokens that allow users to create NFTs without smart contracts.
Tezos: Tezos is a proof-of-stake blockchain network that allows NFT arts to be traded on their platform.
GoChain: The VeVe app and Zeromint NFT platforms are powered by GoChain, known as an 'eco-friendly' blockchain.
Cryptocurrency wouldn't be the pioneer it is today without blockchains. With non-fungible tokens in the scene, things have only gotten more interesting. As blockchain supports cryptocurrency, it also backs unique digital collectibles despite their distinctive natures. Now that you know more about how the NFT blockchain technology works, you can make better decisions while investing.