Parachainglobal：Why do more NFT projects choose Ethereum?

NFT, the full name of Non-Fungible Token, refers to a non-fungible token, which is the only cryptocurrency token used to represent digital assets (including jpg and video clip forms), which can be bought and sold. After debuting in 2017, tokens like Cryptopunks and Cryptokitties quickly captured the attention of buyers, and the market has exploded, with Ethereum being a big factor.

 

Why Ethereum?

 

Ethereum is an open source public blockchain platform with smart contract capabilities, in fact it is the first network to support smart contracts. Smart contracts make it easier to provide ownership and manage the transferability of NFTs. Additionally, Ethereum has created a token standard called ERC-721 specifically for the minting of NFTs. Thus, Ethereum laid the foundation for NFTs, paving the way for the digital asset revolution.

 

In addition, the EVM (Ethereum Virtual Machine) is the cornerstone of Ethereum's operating structure, which resembles a decentralized computer - a virtual machine - to handle the millions of projects built on the Ethereum network. Therefore, NFT creators must ensure that their projects are compatible with the EVM; another reason why they must be built on Ethereum.

 

However, with the popularity of Ethereum, a large number of projects led to an influx of network traffic. This traffic eventually leads to higher transaction fees. The increase in traffic also slowed down the network. Transactions started taking a lot of time, and users were forced to pay higher fees to prioritize their transactions. As a result, many other blockchains have emerged in the market to circumvent these issues, including other blockchains such as Solana, Cardano, and the BNB chain that have also started hosting NFTs.

 

Nonetheless, NFTs created on such platforms should still be compatible with the EVM if the creator wishes to use a wallet such as Metamask to access the NFT.

 

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