Are you trying to find the best blockchain for NFTs? Cardano, Ethereum, and Solana are some of the popular blockchains used to enter into smart contracts and store NFT projects. All three use different protocols to store and accumulate data related to NFT transactions. With a race to establish the best blockchain, Cardano, Ethereum, and Solana are constantly upgrading to support and provide a fast, secure, inexpensive, and environmentally friendly platform for NFT trading.
Some important points to start
Before reviewing the different blockchains one by one, let’s look at some terminologies used when talking about NFT:
- DeFi: DeFi or decentralized finance is the new financial standard that has grown exponentially since the introduction of NFTs in the market. DeFi removes the need for banks or middlemen and uses smart contracts on the blockchain to execute transactions.
- Smart contracts: Primarily, smart contracts are programs or codes stored on a blockchain such as Ethereum and are deployed when defined conditions are met. Smart contracts remove the need for intermediaries, help run different NFT projects, and enable the minting of digital assets.
- Dapps: Dapps are decentralized applications that run on a blockchain and allow interaction with smart contacts. They help deploy code in smart contracts and allow storage of all information regarding NFT trading, such as transaction history and token metadata.
Which is better for NFT: Cardano vs Ethereum vs Solana?
Ethereum, Cardano and Solano are the most popular blockchains used for NFT projects. Find out which one is better for NFTs.
Let’s take a look at Ethereum first.
Ethereum for NFTS: What makes Ethereum the largest blockchain for NFTs?
ETH or Ether is the only Ethereum cryptocurrency used to make any payment. There are thousands of collectible tokens or NFTs stored and tracked on the Ethereum blockchain. ERC-721 is the NFT standard that uses an API to exchange tokens within Smart Contracts. Each time you trade an NFT, a fee is deducted and given to the miner for processing as well as verifying the transaction. The majority of new NFT projects are stored on the Ethereum blockchain due to secure and reliable transactions. Additionally, with the rise of NFT projects, Ethereum is also establishing new protocols to guard against any attacks. Solidity and Vyper are the two main programming languages used on Ethereum for implementing smart contracts.
Ethereum 2.0 and its impact on NFTs
Blockchain is facing a backlash due to the current prospect of increasing carbon footprint. Ethereum 2.0 is ready to meet these challenges and provide much safer, more secure and faster transactions. Ethereum aims to enable over 1000 transactions every second while reducing the power and energy used to compute them.
Other important elements of Ethereum 2.0 are the introduction of staking, the merger of the Beacon chain with Mainnet Ethereum and finally the construction of shard chains to improve scalability as well as capacity. All of this can improve the platform’s ability to perform fast and inexpensive NFT transactions.
Solana For NFT: a fast and inexpensive blockchain for NFTs
Solana is a decentralized blockchain that has been recognized as a low latency, high performance platform ideal for creating smart contracts and creating NFTs. Unlike Ethereum, Solano’s smart contracts are stateless, and the platform’s fast transactions and low fees have made it a favorable choice for NFT artists and traders. Additionally, Solano uses Rust C and C++ to create programs to deploy on the blockchain.
Solana insists that their platform allows a block time of 400 milliseconds, and trades will call back below one cent or $0.01. The platform is also censorship-resistant and will continue to allow free and indefinite trading of NFTs.
SOL is the native currency of the Solana cluster (a group of validators who maintain an individual ledger). These validators earn SOL for securing the ledger related to NFT transactions. Also you can use Solana Explorer to view NFT transactions with accounts.
Currently, the platform hosts 193 NFT projects, and creating smart contracts for NFTs is a 3 steps to treat:
- Establishing a development environment for Solana
- Use Rust to write the Smart Contract
- Use NodeJS to deploy the Smart Contract
Cardano for NFTs: what makes it unique?
Ada is the cryptocurrency used to buy and sell NFT projects stored on the Cardano blockchain. It is the first blockchain platform established using peer-reviewed research along with evidence-based methods to create a transparent platform for trading. Additionally, Cardano uses advanced technologies to provide top-notch security and low transaction costs.
Marlowe and Plutus are the two programming languages used to write applications to interact with the Cardano blockchain. The platform will soon experience a sudden increase in NFT projects and traders due to the low carbon footprint it offers without compromising transaction security.
Must Read: ERC-721 Vs ERC-1155: Advantages and Differences to ERC-721 Standard.
Consensus Protocols: Cardano vs. Ethereum vs. Solana
- Ethereum uses a Proof-Of-Work approach, which means that all transactions are recorded internally on the Ethereum blockchain. This makes transactions much more secure but requires more computation, which leads to higher transaction costs compared to the other two blockchains.
- Solana uses a combination of Proof-Of-Stake with the Proof-Of-History approach. NFT smart contracts are stateless on Solana, and third-party accounts can access a newly deployed smart contract and store information about their accounts. Storage space for NFT smart contracts is paid for using the SOL token. By not storing it in-house, Solana offers fast and inexpensive NFT transactions around the world.
- Cardano has implemented Ouroboros, a blockchain proof-of-stake protocol that acts as the backbone of the platform. Cardano claims that Ouroboros requires minimal power and offers the same level of security as the proof-of-work protocol.
Future of Cardano vs. Ethereum vs. Solana?
Currently, the majority of NFTs are stored and minted on the Ethereum blockchain. Solana has seen an increase in 2020 due to fast transactions, and Cardano is becoming popular due to its low fees and environmental impact. Going forward, Ethereum claims to reduce its carbon footprint by 99.95%, providing an energy-efficient platform for NFTs. Overall, Cardano, Ethereum, and Solana have the same functionality but completely different approaches to recording transactions. NFT artists or collectors will need to keep in mind the reliability and security of the platform they choose while paying the lowest possible transaction fees.