Ethereum has come a long way after Bitcoin but has become famous due to its smart contract functions. Developers can create almost anything possible with Ethereum, from Dapps, DAOs and NFTs. Its ecosystem is so vast that it can continually be improved to drive new things. This is also why Ethereum is an excellent investment, despite its lack of popularity like Bitcoin. Therefore, people can buy Ethereum online, sell it, and withdraw funds easily, especially after the latest updates.
Besides investments, Ethereum is a great tool for creating NFTs because it not only leverages excellent opportunities but also has an expanded community that is there to help at any time. Moreover, the considerable data and knowledge available on the blockchain are easily accessed by anyone interested in creating NFTs. This is a huge help for artists who want to bring out the most of their capabilities while selling their art at fair prices to a new customer target.
Let’s see other reasons for Ethereum to be a distinguished ecosystem for NFTs.
How much do smart contracts account for the creation of NFTs
Smart contracts are one of any blockchain’s most revolutionary technological features, but Ethereum is the only one to bring it to the mainstream. With the help of smart contracts, anything can be self-executed, meaning that once the requirements for the contract are signed, it will deploy automatically. They’re also safe due to tamper-proof functions through which no one can change the already programmed functions.
Regarding NFTs, smart contracts assign ownership, an essential feature of these assets. At the same time, they help create NFTs through minting, which converts files like images or videos into digital assets on the Ethereum blockchain. The metadata is therefore stored and configured through the smart contract code, which ensures ownership to the creator until they choose to sell or transfer it.
Even NFT marketplaces choose to work with smart contracts in auctioning. With a set of predetermined conditions, marketplaces can access ownership of a particular token.
Smart contracts provide unique advantages to the making of NFTs
Smart contracts are beneficial for developers or artists who want to create NFTs. That’s because they provide the following features:
- They ensure trustworthiness, which is highly important in a business. The conditions from the contract that both parties signed will trigger the completion of the contract only when they’ve achieved their tasks;
- They are fast solutions that execute transactions as quickly as possible, which eliminates the need to process files manually or for processes to be operated single-handedly;
- They keep all records of past transactions chronologically, offering fast accessibility to documents that can be used for improving a product or service;
- They’re the better version of paper, an outdated and old way of signing contracts and collaborating as a business. On the other hand, smart contracts won’t disappear because they’re present in code lines;
Why do artists choose Ethereum for deploying their NFTs?
Ethereum is a complex blockchain solution that requires specific skills and knowledge to master. For programming, it uses the Solidity language, which is more difficult to understand and use, but regardless of that, here are the reasons why people prefer Ethereum over other blockchains:
- It’s got a selection of NFTs available on the network, which increases the chances of investors and buyers to gain interest in putting their money to work;
- It’s a stable solution, being present on the market for more than a decade and turning into the most well-established blockchains;
- It’s a versatile ecosystem with Dapps, DAOs and other multiple digital solutions with numerous use cases in decentralized banking or gaming;
Still, Ethereum has a long road ahead and improvements to make since:
- It can be quite expensive at times, with gas fees rising due to network congestion;
- It has a large market cap, which attracts a bigger number of transactions, leading to volatility;
- It underwent different events that made people lose their interest, especially regarding security;
Here are some of the most successful NFT projects
NFT projects were seen as childish and useless, but after they got recognized on the markets and at auctions, some of the best projects were traded for vast amounts of money, proving that anything can have value for the right audience.
For example, the Bored Ape Yacht Club NFT collection was one of the most known at its release. It contained 10.000 unique assets and included community access through a membership card. The exclusive club of BAYC had certain features and perks, such as limited-edition merch and access to real-world events related to the club.
CryptoPunks is another famous project with 10.000 pixelated art images. The NFTs are usually used for asset tokenization, leading to the prices of these NFTs to be soaring. That’s why some can start from $100,000 to $1 million. Of course, the rarest NFTs are the most expensive, but their value is more than that.
While these NFTs are based on the Ethereum blockchain, many other projects reached incredible values and prices. For example, the “Everydays – The First 5000 Days” collection made by Beeple over 14 years was sold for $69 million on Christie’s, a reputable auction website. The project caught the attention of many who couldn’t understand why these drawings of a person’s life were becoming so valuable. Still, the trust is that the artist built a strong community over the years, and he was one of the most respected digital artists, which helped him propel this incredible project after spending so much time working on it. Therefore, the secret to being a famous artist is to be closely related to fans and interested investors, meaning engaging with people to succeed in the NFT sector.
What do you think about NFTs on Ethereum?
Ethereum is one of the fastest emerging technologies in the blockchain domain, therefore being used to create NFTs. The ecosystem is packed with tools, such as Dapps and DAOs, but it also offers everything artists need to leverage their creativity through creating digital assets.
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