Polygon has established itself as the go-to Ethereum scaling alternative for various applications, critical for NFT adoption. According to search analytics, more blockchain advertisers incorporate Polygon than other levels 2 network scaling options.
According to other sources, NFTs are fleeting cultural phenomena that will disappear and be forgotten with time, like pet pebbles. Others argue that NFTs is a paradigm-shifting technology that has aided in forming a new (and sustainable) creative economy. Regardless of which side of the aisle you are on, the truth is that the field of NFTs is expanding rapidly and will have a huge impact on society for many years to come.
The total revenue earned by NFTs in 2020 was only $94.9 million. It will have topped $23 billion by 2021.
To understand how the digital art and collectible markets are changing, it’s critical to understand where NFTs are now situated and how they’re being used. With that in mind, let’s look at some of the recent movements in the NFT field and explain why Polygon is the game-changer in NFTs.
How to Obtain a Non-Fungible Token (Nft)?
A non-fungible token (NFT) is a token that is created and managed on a polygon blockchain (most commonly Ethereum) to represent asset ownership. As a result, most NFTs need payment in Ethereum or other blockchain-compatible types of money where they exist.
Simply transfer your cryptocurrency to a safe digital wallet to acquire and NFT. Consider a wallet that allows you to store and send NFTs. While some exchanges, such as Coinbase, have built-in wallet capabilities as part of the account opening process, independent wallets such as MetaMask are options.
Connect your wallet to a reputable (NFT) exchange. Following your connection, you can begin browsing the marketplace’s assortment of NFTs and making purchases.
Purchasing NFTs and the NFT Market as a Whole
There are dozens of markets for non-financial transactions. The most popular is OpenSea, built on Ethereum and enables over 150 additional payment tokens. More NFT markets that incorporate art and collectibles include Binance NFT, Rarible, and Foundation.
Certain asset kinds are specialized in specific markets. The Musician Marketplace, for example, focuses on musical compositions. At the same time, NBA Top Shot is the NBA’s officially sanctioned marketplace for purchasing digital video highlights.
There is a marketplace for you looking for art, collectibles, video game assets, or website domain names.
Crypto Wallets Aid in the Acquisition of Nfts
Everyone requires wallets to store NFTs. Once you’ve decided, you’ll need a place to keep your NFT. Coinbase Wallet and MetaMask are simple options, and several cryptocurrency exchanges incorporate wallet functionality as part of their trading platform.
There are, however, more wallet alternatives for offline crypto and NFT storage that do not require a direct connection to an exchange (known as cold storage). Trezor and Ledger, for example, offer real hardware wallets capable of storing crypto assets. Wallets with a private security key can give an extra degree of security to the process of storing NFTs.
An Examination of Some Nfts You May Wish to Own
Unlike cryptocurrencies, NFTs are not appreciated for their utility (as an investment asset, as many investors perceive Bitcoin and its use as a means of payment). Rather, the value of NFTs is derived from the media they represent, such as art, music, film, writing, etc. Investing in NFTs is thus an investment in a collectible object, the value of which will be determined over time by a variety of intangible variables, such as the piece’s quality, individuality, and the artist’s clout.
Investors can also invest in tokens to buy and administer digital asset networks. At the moment, the most popular NFT tokens are as follows.
Axie Infinity
Axie Infinity is a digital game where players gather, battle, and trade mythological monsters known as Axies. It is built on the Ethereum blockchain, and tokens may be earned and utilized in the marketplace.
DECENTRALAND
Decentraland is a decentralized autonomous organization that facilitates the sale and acquisition of digital representations of real estate. It allows holders of the Mana token, which you may purchase, to participate in network decision-making. Decentraland, like physical real estate, allows you to buy and sell lands and other valuables. You can also take part in and enjoy the many activities in the ecosystem.
IMMUTABLE X
Immutable X is a layer 2 scaling solution for Ethereum-based NFTs. It can handle over 9,000 transactions per second without the economic constraint of gas taxes, and it gives users complete control over their assets. In addition, the platform promises zero-knowledge proofs, carbon neutrality, and rapid transactions. Immutable X provides the same level of security by using the Ethereum consensus layer to resolve transactions.
While NFTs are currently used exclusively on digital art and media, their prospective applications go far beyond securing collectors’ ownership of their artifacts. A growing number of businesses are looking into improving the use of blockchain and NFT technologies in their operations.
When investing in NFTs as a new technology, use caution. Cryptocurrency values are extremely volatile, and multiple competitors vie for user and investor attention. If you decide to buy NFTs or tokens, keep in mind that they should be part of a well-balanced portfolio.
Justification for Polygon as a Better Nfts Substitute
Investors have been looking at price charts on websites for patterns in NFTs since the introduction of cryptocurrencies as a means of efficient money transactions. Non-fungible tokens, or NFTs, are among the most exciting developments in cryptocurrencies. Aside from that, unlike cryptocurrencies, NFTs are unique, similar to collector artwork or baseball cards. Their worth stems from their uniqueness. Furthermore, because NFTs are a blockchain creation, they are not issued by a central body. The process of creating NFTs is as decentralized as the process of buying and selling them.
Most NFTs are generated, purchased, and traded on Ethereum-based platforms, while other blockchains are entering the market. Despite its current dominance, Ethereum has some limitations. One of these is its poor throughput, or processing rate, caused by high network traffic – a serious drawback for a major cryptocurrency. Another problem is the high costs of minting and exchanging NFTs.
Polygon blockchain makes NFT minting more efficient and cost-free, and it is a viable alternative to Ethereum. Continue reading to understand the steps involved in minting NFTs on Polygon Chain. However, let us start with a quick overview of Polygon.
Polygon Transactions Have Lower Fees Than Ethereum Transactions
A user’s highest significant gas cost across all transactions on Polygon’s network is 9.50 MATIC, or US$15.86. The regular petrol price on Polygon is exceptionally low, at less than US$0.01 for each transaction. Ethereum, on the other hand, has a fixed gas fee that starts at US$25 and varies depending on network congestion.
Each polygon blockchain transaction necessitates the payment of a fee for the computation involved in transaction processing. The fees paid are then transmitted to miners, who use their computer power to authenticate the transaction and add the data to the public ledger.
Transactions Are Completed Faster
The point at which a transaction becomes irreversible is referred to as “transaction finality.” While Ethereum has an excellent transaction finality rate of six transactions per minute, Polygon, a layer 2 protocol designed to prevent network congestion, has a transaction finality rate of 2.3 seconds per transaction. Polygon Matic is increasingly being employed in NFT applications. Polygon is also utilized for larger NFT projects, such as the most recognizable ape club, which has acted as the face of NFTs since their value spike began.
While many of us strive to be the first to come up with an idea, there are times when the safest approach is the best. Investing in ongoing projects makes more sense than wagering on unknowns and hypothetical initiatives. According to Polygon, the network contains around 7,000 decentralized applications. This level of integration has a large network effect.
Interest in the Polygon Network Is Increasing
On Google’s search logs, we may see evidence of Polygon’s approval as the favored layer 2. Polygon has held a commanding lead in search interest in the United States for six months. It could be because of the wide variety of applications and websites that interface with Matic for their projects.
Polygon blockchain is the only layer 2 that US users had regularly looked for, except for a brief period in November when Loopring search interest increased owing to the GameStop tie-in. And the story is identical throughout the rest of the world.
Terms are occasionally searched for several reasons. After all, the term “polygon” refers to a mathematical term for a form. We may conduct similar searches to determine the word’s link to compensate for this. The table below compares the top five related Polygon and Loopring questions:
The motivations for the search are self-explanatory. People are becoming acquainted with Polygon due to their need to use it and integrate it with their Metamask wallets. The majority of loopring searches have been inspired by speculation.
The motivations for the search are self-explanatory. People are becoming acquainted with Polygon due to their need to use it and integrate it with their Metamask wallets. The majority of loopring searches have been inspired by speculation.
Partnership with Moonpay
The new Polygon-MoonPay connection will aid in advancing NFTs by reducing friction in fiat to NFT custody. MoonPay has evolved into a fiat-to-crypto onramp, reducing friction for many consumers. Previously, buying NFTs on Ethereum required buying ETH on an exchange, transferring it to a Metamask wallet, and buying the tokens on an exchange like OpenSea. Customers were still required to purchase ETH on the mainchain and bridge it to the Polygon blockchain network when NFT projects began leveraging Ethereum via Polygon. This was a great decision because it limited the payment of ETH gas fees to bridge transactions rather than every single NFT transaction.
Users can now open MoonPay accounts and buy Ethereum on the Polygon network without paying the gas fee required to bridge the ETH across. This is an important milestone since consumers interested in acquiring NFTs but inexperienced with the complexity of blockchains and cryptocurrency may now transition from credit card to wrapped ETH on the Polygon network in a few simple steps and at a cheap cost. It’s noteworthy since certain projects don’t require ETH to buy NFTs. Some will instead use the USDC stable coin. MoonPay allows consumers to buy USDC on four distinct chains, one of which is Polygon and Ethereum, and zkSync. MoonPay reduces friction for NFT consumers, and Polygon has the most MoonPay alternatives.
Final Considerations
The value of NFT is increasing above and beyond as a new trend that is currently capturing the attention of several mainstream IT companies like Meta and banks such as JP Morgan with spaces in the metaverse. To access NFTs, everyone requires a wallet, and Polygon is available on most wallets.
NFTs, or non-fungible tokens, are separate assets, similar to collectible artwork or baseball cards. Polygon allows for more efficient and cost-free NFT minting and is a trustworthy alternative to Ethereum. Polygon Matic is now used by many developers in the NFT field due to its scalability. Transactions on Polygon are inexpensive, costing only US$0.01 for each transaction.
Many NFT customers buy NFT on the Polygon network’s tier 1 Ethereum chain. It will aid in the advancement of NFTs by reducing friction in the transition from fiat to NFT custody. MoonPay is a fiat-to-crypto onramp that will eliminate friction for many customers. Polygon’s MoonPay lets you buy ETH from Polygon, zkSync, and IMX. The future is positive, yet MATIC may face price pressure if the overall market experiences a long-term bear market. If you also want to start your polygon blockchain-based NFT platform, consult with a polygon blockchain development company to make better decisions for your business growth.