Why Ethereum will continue to remain the home for NFTs (that matter)

The NFT World… so far

The NFT world currently revolves around Ethereum. It’s where NFTs started, it’s where most people have acquired their first NFT, it’s where most of the sales are happening, and it’s where the biggest NFT creators and collectors are. At this stage, it’s currently the only chain on which most people would hold highly valuable NFT collections.

Ethereum has a huge head start

Nothing new, but this advantage is a big benefit. The head start and community around Ethereum (compared to other smart contract blockchains) is often discussed when comparing blockchains in general, but this is also relevant when it comes to NFTs. The developers, the tooling, the history, the platforms, the wallets, the familiarity — all these things matter when people are interacting with NFTs.

3LAU’s Star Crossed on SuperRare

Strong values matter

Short but sweet — Ethereum has extremely strong values — neutrality, user sovereignty, and freedom. Not every chain has the same values, and chains often sacrifice values to chase features. This matters, and people will take this into account.

Security and safety of assets

As of today, Ethereum has proven to be a safe and secure blockchain, approaching the characteristics of Bitcoin. As the value of NFTs grows rapidly, holders of this value will be very careful about where they store this value. Much like highly valuable physical art, the security demands and systems protecting these NFTs will only grow higher.

NFT composability matters

Most readers will be familiar with composability in the Decentralized Finance (“DeFi”) space. The ability to permissionlessly build on top of everything else that exists in DeFi is truly valuable and becoming one of the most powerful characteristics of DeFi, and also know as “money legos”.

NFT Legos

NFTs and DeFi are blending together

I believe that products in DeFi will become more and more intertwined with NFTs, and NFTs will become more and more intertwined with DeFi.

MetaFactory’s Digi-physical Experiences

Other NFT platforms will connect to Ethereum

There are other NFT blockchains that are starting to and will continue to sprout up. I believe that these platforms will have to connect to Ethereum, and add value to participate.

NFTs will be fine on Ethereum

At this point, the critics will be asking “How will Ethereum be able to handle this?”

Conclusion

The NFT space is currently built on Ethereum, and it is expanding rapidly. Ethereum has its drawbacks, yet there are too many good reasons why the NFT space will continue to find its core home and be built on Ethereum.

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