Any startup or entrepreneur who has been involved with the development of new-fangled technologies for business purposes has mostly come across the term ‘blockchain’. This technology is considered to be a complex and emerging technology that acts as security in any digital platform. Blockchain technology includes various beneficial factors such as providing high security, privacy, transparency, and more. In other words, blockchain is a decentralized virtual ledger that is incorruptible across many machines. The data that is recorded on the ledger will be completely verified by the several computers that are connected to the particular network. No one can modify, rewrite, or erase items from the ledger.
In recent years, many startups and companies are implementing blockchain technology for various purposes to make their ecosystem more secure. So there is a great demand for this technology. With this huge demand for blockchain technology, everyone has begun to adopt this technology for their business. In the blockchain sector, apart from the crypto coins and tokens, NFTs are also gaining huge popularity with their unique functions. NFT is one of the recent crypto trends which is being a hot topic in the blockchain space.
The non-fungible tokens are quite popular in recent times with their market increasing to $2.5 billion in the first half of 2021. Thus, there is an increase in non-fungible token marketplaces which is a platform for buying and selling all kinds of NFTs. By creating an NFT, one can generate massive revenue with unmatched potential for ROI. But for developing a non-fungible token, you need to choose the right blockchain platform. This is where you might have a question — how to choose the right blockchain platform for creating an NFT? This is the most common question that every startup and entrepreneur will have in their head when it comes to NFT development.
In this article, let us discuss how to pick up the best blockchain platform for NFT development and the popular existing blockchains for creating secure non-fungible tokens.
Let us begin this interesting article with a small overview of non-fungible tokens.
What is a Non-fungible Token?
Non-fungible tokens are unique and not similar to other tokens. NFTs represent unique items or collectables which might be digital art, painting, gaming assets, or whatever. These tokens have different properties in the marketplace compared to other tokens. When compared to fungible crypto tokens, NFTs will have a different protocol structure. Because in fungible tokens, it follows the utility value. Whereas in non-fungible tokens, it follows the uniqueness. These tokens are non-interchangeable, indivisible, and more unique. so they are distinct from one another. The major benefit of the NFT is, each token has different specifications and values.
One can buy and sell non-fungible tokens only in the NFT marketplace. It is a special platform for trading NFTs alone. Note — you can’t buy or sell NFTs on the crypto trading platforms. Currently, there are some popular non-fungible token marketplaces for buying and selling NFTs. such as rarible, opensea, and foundation. As previously said, NFTs are trendsetters so by launching your own NFT in the marketplace, you can generate a huge amount of profits in a short period. That’s why there is a great demand for the best NFT development services in the blockchain industry.
Use Cases of Non-fungible Token Development
If you are going to create an NFT for your business, then you must know non-fungible token development use cases. There are many use cases for NFTs but only a few are suitable for business and earning profits. Here I shared some best use cases of NFT development that might help for your NFT business.
- NFTs in digital art
- NFTs in gaming
- NFTs in real estate
- NFTs in ticketing
- Collectible NFTs
- NFTs in music
- NFTs in video
- NFTs in GIF
- Logistics NFTs
- Entertainment NFTs
Top Blockchain Platforms For Non-fungible Token Development
At this present time, there are several blockchain platforms available for NFT creation. But only some platforms are best when it comes to non-fungible token development. Here I list the three main blockchain platforms that have a great efficiency for creating a non-fungible token and that are prominent in the market.
If you are a crypto enthusiast, then you might be familiar with the Ethereum blockchain network. Ethereum is a decentralized platform that is developed and designed for running smart contracts. Smart contracts are the programming code that will be stored on the blockchain. It can read and write data that is activated by blockchain transactions. Smart contracts are more essential as it allows the developer to create decentralized apps and crypto tokens. On the flip side, Ethereum is recognized as the second-largest cryptocurrency based on the coin market cap and trading volume.
The native cryptocurrency of Ethereum is called Ether and it powers the entire blockchain through transaction fees. Ethereum blockchain can create both fungible and non-fungible tokens. Because it supports multiple token standards for creating tokens. Such as ERC20, ERC721, ERC1155, ERC777, and more. Among these token standards, the ERC721 standard is used for creating non-fungible tokens. Here ERC stands for Ethereum Request Comments and it includes packages, formats, archives, and more.
ERC721 is the first NFT standard introduced by Ethereum that determines the non-fungible token. This standard allows anyone to develop NFTs on Ethereum networks that are completely unique from one another. ERC721 standard tokens provide ownership over collectable and unique items. Currently, this token standard is popular in the market so many startups are willing to create non-fungible tokens by using the ERC721 token standard.
Tron is a prominent blockchain network among startups and entrepreneurs in the marketplace. It is an open-source decentralized blockchain network that is well-suited for crypto token development. It has its native crypto coin named TRX which is one of the best cryptocurrencies in the crypto marketplace. By using the Tron network, developers can create Tron based tokens in a hassle-free manner(Note — The core function of the Tron network is similar to Ethereum). This blockchain mainly focuses on expanding the market of decentralized applications by making it easier to create and deploy them.
Tron supports three token standards for crypto token development. Such as TRC10, TRC20, and TRC721. Among these standards, TRC721 is used for NFT development. TRC721 allows the creators to develop and launch a non-fungible token on their desired collectable or unique items. Since it is a secure blockchain, you can create and launch a TRC721 token on the Tron network as per your business without any risk.
3. Binance Smart Chain
Binance smart chain is the trending blockchain platform which is introduced by the binance community in 2019. This blockchain brings the next level of freedom for the users and startups who are looking to raise funds for their projects. It has its native crypto coin named Binance coin. Binance smart chain is the upgraded version of the binance chain. So it runs parallel to the binance chain. This blockchain is also called the BSC network and it enables the developer to create smart contracts for crypto tokens and introduces the new staking mechanism of Binance coin(BNB).
Binance smart chain supports two productive token standards for crypto token creation such as BEP20 and BEP721. Among these two standards, BEP721 is used for non-fungible token development. Creators can use the BEP721 token standard for creating all kinds of NFTs in a trouble-free manner. Currently, the binance smart chain is gaining huge popularity among investors, traders, and startups in the market for developing an NFT. Also, many earned a lucrative amount of money by launching an NFT in the marketplace. That’s why people are showing interest in creating BEP721 tokens for starting their NFT business.
Now, let us see…
How to Choose the Best Blockchain Platform for Non-Fungible Token Development?
In the previous section, we have seen the top blockchain networks that can be used for NFT development. But you must consider some important factors before choosing the blockchain for Non-fungible token development.
Here I shared a few essential parameters that you need to take in your account before selecting the blockchain platform for creating an NFT.
1. Transaction and Token Development Cost
The non-fungible token transactions need cost-effective solutions. If you want to create an NFT and get a great good return on investment, then your NEFT transactions must be less because NFTs don’t always involve buying and selling non-fungible tokens at high prices. Instead, these tokens involve micro-transactions for digital collectables, card games, in-game digital assets, and more. Keeping the cost at a low price is more important for the adoption and usability of the marketplace. That’s why choosing an excellent blockchain is more crucial. The best blockchain will not charge more fees.
2. Smart Contracts
Smart contracts in the blockchain make the transaction easy. The robustness of the smart contract is an important factor in contributing to the security of the overall blockchain network. So the blockchain platform needs to write secure and bug-free code. For the NFT development, the smart contracts must be subjected to accurate testing. In this way, both the creators and users of an NFT can be sure of minimal risks and hacks. Some of the robust blockchain networks for building secure smart contracts are Ethereum, Tron, and Binance smart chain.
3. Speed of Transactions
The transaction speed is the most essential that you must consider when it comes to choosing the blockchain platform for NFT development. Transaction speed is mainly considered for the domains that include transfer and storage of value. Speed of transaction shouldn’t come at the expense of security. Because this happens on some blockchain networks. Because of immutability, the blockchain platform can prove to be an enhancement to security features.
4. Possibility of Forking
As we know that the value of the non-fungible token is chained to its uniqueness and rarity. One thing that can give a threat to these elements is the duplication of the non-fungible token. In simple words, when block validators fail to agree a consensus on proposals made by any group stays on course, the network is divided into two. This creates two blockchains and a hard fork. That means it continues to spit, duplicate versions of the non-fungible tokens will be released. Then, the ownership of the asset will be at stake. As a result, the original non-fungible token loses its entire value. That’s why you should choose a forkless blockchain for NFT development.
Security is one of the major factors that you need to consider when choosing a blockchain platform to develop a non-fungible token. Blockchains are also vulnerable to anonymous attacks. Some consensus mechanisms are susceptible to these attacks like Proof of Work (PoW). When the attack happens, you might lose access, data, or funds. So it badly impacts your non-fungible tokens. For robust security in your token, opt for a blockchain platform with some alternative mechanisms(proof of state).
These are the important elements that you need to consider before choosing the blockchain platform for NFT development. NFTs are going to rule the entire digital world in upcoming years. So this is the right time to create the non-fungible token by choosing the right blockchain platform. The only thing in your hand is to hire a pool of well-skilled blockchain developers from the top-notch NFT development service provider in the crypto sector. I hope this article helps to point you in the right direction for kickstarting an NFT business!