Cool thread OP
NFTs been popping for a while, especially around January 2021 things got crazy money wise. I was surprised nobody made an NFT thread.
Question:
one thing that makes it to me seem hard to get into is this, the different type of platforms. I am not able to tell why I’d pick Ethereum over Solana for example. The info I find is usually focused on the cost to the environment. But what factors do you look at when selecting a platform and why does it even matter if the focus is buying NFTs and selling them for more expensive?
Second question: do you think a) this is a bubble that will burst and the value of NFTs will come down drastically or b) this is the new reality, isn’t going anywhere, will be mainstream in a few years?
1st Question: Its the different technology inherent to each chain that solve the dilemma of scalability, security and decentralization. Solana is proof of stake and proof of history as well as other innovations that make it competitive with Ethereum.
Short answer: Solana is faster and with fewer fees. There is even a Wormhole function that allows projects to move between each chain.
I paid $200 in gas fees for a $60 NFT on Ethereum. Gas fees on Solana are 0.00005 or something like that.
Long Answer: For specific chains, each has it's own answer to the Impossible Triangle, which is balancing scalability, security and decentralization. Ethereum for example is proof of work, moving to proof of stake, and has issues with scalability. Which is why gas fees skyrocket when the blockchain is congested. I'm doing broad strokes but this is the real issue blockchains are trying to settle. Algo, Matic, Elrond and a few others use ZK Rollups, or Sidechains to solve the scalability issue, which affects how the blockchain stores and retrieves data. I'm so bullish on Solana because of it's innovations in this area and the resulting transaction speeds.
Here is Solana's Proof of History explained
SideNote: Solana uses Arweave for data storage. You may want to look into that coin as Solana's NFT market heats up.
2nd Question: I see NFT's being here to stay. This is the second NFT wave we've had this year only a few months apart from the first major wave from Beeple's record setting sale. When you actually look at these communities, people are extremely passionate about the space and are long term investors by nature. Art is a huge industry and NFTs are looking into branching into the gaming industry, which is currently larger than sports. The technology is still new but the ultimate form of NFTs IMO, would be a Triple A game, like Grand Theft Auto, being play to earn; maybe even VR too.
Currently, people in third world countries are earning a living by playing NFT games like AXIE Infinity. People NEED this technology. I think and hope Play 2 Earn becomes mainstream somehow.
We are moving into a time in human history where we will have humans born in the time of the smart phone, we will run out of people born before the modern internet. Monetization of digital property via social media is already the present. Internet technologies and digital ownership is the future. You could ask why aren't more people minting memes in order to monetize going viral? Is it necessary to mint a youtube video if your already making viewer money?