NFT technology has exploded in popularity as its use cases have extended beyond digital art to various industries, including gaming, music, and sports memorabilia. This blockchain-based technology allows for the creation of provably unique and scarce digital assets, making them highly sought after by collectors and enthusiasts alike. To cater to this demand, various blockchain networks have emerged, each offering unique benefits for NFT creators, traders, and users.
In this comprehensive guide, we will explore the top blockchains for creating, trading, and interacting with NFT technology. We will delve into the benefits of each blockchain, the token standards used for NFT creation, and the top NFT collections and marketplaces for each network.
1. Ethereum Blockchain
The Ethereum blockchain is the OG of smart contract-based blockchain networks. Co-founded by Vitalik Buterin, Gavin Wood, and others, Ethereum introduced the smart contract concept to the decentralized landscape in 2015. As the premier blockchain for smart contracts, Ethereum tops the list of reputable blockchains for NFTs with its ERC-721 and ERC-1155 token standards.
ERC-721 is the token standard for NFTs created on the network, while the ERC-1155 is a multi-token standard for creating both fungible and non-fungible tokens. Ethereum is also one of the most secure networks, having undergone a recent technical upgrade dubbed “the Merge,” which increased the network’s scalability from 30 TPS to 100,000 TPS and reduced its energy consumption by approximately 99.95%.
With over $38 billion in sales volume and over 32 million transactions, the top NFT collections on the Ethereum network include Bored Ape Yacht Club, CryptoPunks, Meebits, Art Blocks, and Axie Infinity. The network currently hosts over 30 NFT marketplaces, including OpenSea, Rarible, and SuperRare.
2. Solana
Solana is an open-source blockchain network written in the Rust language and co-founded by Anatoly Yakovenko, Greg Fitzgerald, Raj Gokal, Eric Williams, and Stephen Akridge. The network became operational in 2020 with its native token, $SOL, and uses a comprehensive PoS consensus mechanism dubbed “Tower BFT” to mitigate network cost and latency.
Solana’s Proof-of-History (PoH) works as a reminder before consensus, making it the first blockchain to use PoH and enhancing its scalability. Solana has a theoretical scalability of up to 50,000 TPS and can process over 3,000 TPS at a lower transaction fee with its smart contract functionality.
According to SOLSCAN, the Solana network has over 33 million NFTs with 274,693 collections across 20 marketplaces. With over $3.7 billion in sales volume and almost 22 million transactions, the top NFT collections on the Solana network include Degen Ape, DeGods, Aurory, GGSG, and Primate. Top marketplaces on Solana include MagicEden, OpenSea, Form Function, and HyperSpace.
3. Polygon
Polygon is a layer 2 blockchain that processes transactions for the Ethereum network. The eco-friendly network, which has adopted the PoS consensus mechanism, was originally launched as the Matic Network in 2017 by Mumbai software engineers Jaynti Kanani, Mihailo Bjelic, Anurag Arjun, and Sandeep Mailwa. It was later rebranded as Polygon in February 2021.
Polygon addresses the low scalability and high transaction fees on the Ethereum network by acting as a Layer 2 network, providing security for the Polygon network. Polygon is capable of achieving up to 7,000 TPS with an average transaction cost of $0.017. The network has partnered with reputable brands such as Disney, Indian Police in Firozabad, and Shemaroo entertainment to launch its maiden NFT marketplace.
According to Cryptoslam, Polygon has recorded over $740 million in sales volume in over 5.5 million transactions from 1.04 million buyers. Top NFT collections on the Polygon network include Zed Run, Aavegotchi, Decentral Games ICE Poker, and Chicken Derby. Top marketplaces include OpenSea, Rarible, and NFTify.
4. Ronin
Ronin is an Ethereum sidechain created by Sky Mavis, the company behind Axie Infinity, in February 2021. The PoA (Proof-of-Authority) network was designed as a reliable, fast, and affordable network for decentralized games. The Axie Infinity NFT collection ranks Ronin as the second network with the highest sales volume after Ethereum, with over $4.2 billion in sales volume spread across over 18.8 million transactions. The Axie Infinity collection is the only NFT currently on the network, as it is the native chain for the play-to-earn game.
5. Flow
Flow is a permissionless layer 1 network designed for games by Dapper Labs, the company behind CryptoKitties. Flow was initially developed to meet Dapper Labs games’ needs and later became public by supporting other DeFi applications and NFTs. The network processes transactions in 10 seconds at a cost of 0.00001 $FLOW, uses a modified PoS consensus mechanism to validate transactions, and uses SPoCKs (Specialized Proofs of Confidential Knowledge) to ensure that the execution and verification nodes operate correctly.
According to Cryptoslam, the Flow network has recorded over $1.21 billion in NFT sales, with the highest sales of over $224 million recorded in February 2021. The top NFT collections on the Flow network include NBA Top Shot, LaLiga Golazos, and NFL All Day. Top marketplaces include NBA Top Shot and VIV3.
6. BNB Smart Chain (BSC)
The BNB Smart Chain was created by Binance in February 2022, combining the Binance Smart Chain and Binance chain into a single network for optimum decentralization. The PoSA (Proof-of-Stake Authority) dubbed “Parlia” is used as its consensus mechanism, incorporating Delegated Proof-of-Stake (DPoS) and Proof-of-Authority (PoA). The BNB chain has recorded over $170 million in sales volume, with ERC-721 token standard used for NFTs created on the network. BSC has over 20 NFT marketplaces, including BakerySwap and BurgerSwap.
Conclusion:
NFT technology has disrupted the way we think about digital ownership, and the rise of blockchain networks supporting NFTs has enabled creators, traders, and users to participate in this digital world. By analyzing the benefits, token standards, and top NFT collections and marketplaces of the top six blockchains for NFTs – Ethereum, Solana, Polygon, Ronin, Flow, and BSC – NFT enthusiasts can better understand which platform best suits their needs.
