- Crypto market shows dump whereas NFT is trending around.
- The NFT boom has brought new chances for artists.
- Ripple is not the only one trying to nudge NFT enthusiasts away from ETH.
Crypto market shows dump whereas Non-Fungible tokens (NFTs) are trending around. Moreover, the token sale tout as unique digital artifacts, totaling $2.5 billion in Q1 2021, and still moving strongly as collectors snap up NFTs of art, sports highlights, and many more.
More so, the NFT boom has brought new chances for artists, actors, and entrepreneurs, also for blockchains and distributed ledgers. In addition, Ethereum is the place to mint and store NFT. Companies like Ripple try to get in on the action. This company’s fate is hitched to the XRP ledger which announced last week that it joins a Series A investment in Mintable, a site that provides simple tools for anyone to make NFTs.
Ripple executive Monica Long explains NFTs as something we’re betting on and said the XRP ledger is a natural fit for inscribing NFT ownership. In particular, she mentioned the ledger’s very low costs and built-in decentralized exchange (DEX).
Long also said, those who plan to mint NFTs on Ethereum (ETH) often face an unpleasant surprise when they are shocked with high “gas” fees, which is a form of transaction tax. In contrast, Long says using the cost of writing to the XRP ledger is like half a penny.
Meanwhile, Long also touts the XRP ledger as a green alternative to ETH. While Ethereum is in the process of changing to a less energy-intensive process, it’s network presently requires oodles of electricity to maintain. More so, the XRP’s annual energy usage is equal to 12 US households, as per Ripple’s co-founder.
Ripple is not the only one trying to nudge NFT enthusiasts away from ETH. Moreover, the upstart blockchain Solana recently announced a “Shopify for NFT” service, however its executives likewise citing cost and the environment as a reason to switch.
Reason Threatening NFT Big Players
Ripple or Solana do succeed in becoming big players in the NFT industry, however, this could also paradoxically threaten the nascent industry. Moreover, the reason is that NFTs, by their nature are unique, it may be easy to replicate things on the Internet. But an artifact rendered as an NFT is registered such that it is one-of-a-kind.
Even more, the problem with utilizing multiple blockchains to inscribe NFTs is that it develops the risk of artists and others providing the same “unique” digital artifact in more than one place. Such a situation would be akin to a homeowner utilizing competing title offices to sell the same property to multiple buyers.
As the NFT market & creator economies grow, many participants are iced out due to the high gas fees required to create NFTs. @mintable_app is removing these barriers to entry w/ a shared vision for low-cost, sustainable NFTs on XRPL. 1/2 https://t.co/7DgYMRKXlo
— Monica Long (@MonicaLongSF) July 1, 2021
As per Long, there is currently an unspoken “honor system” among the big NFT players to prevent such a scenario from occurring. It’s still very early days for the NFT market, as it is for much of the crypto marketplace. But the recent efforts of Ripple and others to compete with Ethereum as registries of the record is something that merits watching closely.