The world of non-fungible tokens (NFT) has a great promise for its users: that of being able to sell almost any digital creation in the form of NFT on a peer-to-peer basis. Thus, instead of seeing his works collect only likes on different social networks, it is now possible to attribute a monetary value to them. To organize the match between supply and demand, many markets have begun to emerge. Playground overview.
OpenSea, the new standard
In 2018, many video games emerged thanks to the ERC-721 on standard Ethereum how Axie Infinite Where is it Of the released. To find all his goods and especially to exchange them in the same place, Offshore it quickly became essential in the ecosystem.
However, whileOffshore forged a very general market identity, other specialized platforms have appeared, more specifically designed for artists Super rare then Known origin And Makersplace.
Please note that during 2019, SpiderDex, another generalist market has appeared. But its operation and management leave something to be desired, the latter has not been adopted by users.
Then 2020 came and the places became increasingly rare on the three historic artistic squares. This is one of the reasons rare he managed to get a job specializing in the field of art and opening its doors to all artists.
“Lazy Minting” and differences between standards
If 2020 was marked by the emergence of NFTs, this is also the year that will go down in history for the notable increase in transaction fees on Ethereumthus favoring the emergence of other blockchains and second-level solutions such as polygon.
Offshore already offered the possibility to create smart contracts and, therefore, to mint NFTs from their platform. For example, this is how the game Assault encryption created all the assets of their game.
Until then, the standard of use was ERC-721, making each NFT collection unique and associated with its own smart contract. But in the face of the explosion of costs, Offshore has decided to use a new method for minting on its platform: the lazy minting.
Very concretely, this method allows the creator of a collection to pay no cost and to leave it to the buyer. This naturally favored the emergence of a multitude of new collections but it also had perverse effects.
Here is a summary table of this evolution:
|Before the lazy coinage||After the lazy minting|
|Type of contract||ERC-721||ERC-1155|
|Deleting the collection||No||Yes, unless an asset has been sold|
|NFT creation costs||Yes||No|
|Possibility of censorship||Minimum (shadowban)||Total|
If the two standards are very different, there is often some confusion between ERC-721 and 1155. The first corresponds to the “genuine” standard. Non-fungible tokensthe second to that of Seeds–Fungible tokens. The ERC-1155 is regularly compared to entrance tickets to the cinema, tickets similar to each other even if unique but above all consumable.
Think before you buy … and create
Although the absence of collection creation fees on Offshore it may seem like an advantage in the first place, collectors on the other hand see things very differently.
Fortunately, it is possible to import a smart contract from another platform to be sure that the semi-fungibility of a collection is not an exclusion criterion for collectors.
Indeed, the first generation of collectors is very attached to this notion. immutability and will tend to favor assets that are unlikely to disappear over time.
The the bull runs being generally quite short, the periods in which everything is sold immediately as soon as it is placed on the market are just as short. It is therefore worth thinking about before buying an NFT but even before creating them!
As a collector of collectibles, here are some questions to ask yourself, taken from the good practice guide of nonfungible.com :
- What is the rarity of each resource?
- Will it be useful?
- How is Tokenomics done?
- What to expect from the evolution of the project?
- Are there more collections?
- How much am I willing to invest?
- How long am I willing to wait for a return on investment?
As an art collector, here are others:
- What is the reputation of the artist?
- How much am I willing to pay for a job?
- How can I contact the artist?
- Is it just for pickup or is there another interest?
- Is the artist really who he claims to be?
- Does the same work exist elsewhere?
- Are the media decentralized?
These questions are fundamental for any serious buyer in the NFT space. And as a seller, it’s only natural to have them in mind so that supply can adequately meet demand.
So which platform should you choose?
Before we review the differences between the platforms, however, there is one thing to keep in mind: it is extremely important do not mint the same work several times on different platforms! The rarity of a creation depends on its availability, if a sale does not take place on a platform, too bad. Blockchain remembers and, in the long run, reputation is worth more than a few coins.
As mentioned above, active transaction fees Ethereum favored the emergence of alternative solutions. It is therefore now possible to coin polygon, Tezo, Solana, immutable X, To flowthe Binance SmartChain or there was.
That’s a lot, isn’t it? The choice of the blockchain (and therefore of the platform) will therefore depend on the nature of the project to be implemented. But rather than trying to compare blockchains with each other and enter a debate that is impossible to really resolve, let’s see what the major platforms have to offer:
|Super rare||Historic leader, brand image||Curation on admission, prohibitive prices, mint taxes|
|Hic and Nunc||Eco-friendly, specializing in generative and programmable art||Price too low for very young artists|
|Atomic hub||Eco-friendly, presence of major brands||General Market|
|Offshore||Brand new easy to withdraw, multiple sidechains, no commission||Generalist market, centralized mint|
|immutable X||Fast, free, designed for video games||Still in alpha|
|VIV3||Eco-friendly, the first marketplace on Flow||Care at the entrance|
|Known origin||Alternative and open culture, payment by credit card||Care at the entrance, mint fee|
|rare||Open, easy to grip||Suspected of washing trade, mint allegations|
|Elegant portal||Payment by credit card, presence of well-known artists||Centralization, care at the entrance|
Each platform also has its own identity and that is why it is important to correctly choose the platform that adheres to your sensitivity.
Another element that can be taken into consideration concerns the ability to evaluate one’s work. The average prices of NFTs sold on the platforms are quite variable and, unless you are already known in the ecosystem, you will therefore have to adapt.
Conclusion: no miracle recipe
With the proliferation of marketplaces on different blockchains, it is now possible to create your first NFTs with disconcerting simplicity. This gateway to the crypto ecosystem has made it much easier to welcome many new users, but we must not forget the reality that can be hidden behind it. Some artists have worked hard to sell their work, while others have a marketing team covering them in case something goes wrong. The same goes for video games or other collectible projects.
There is no miracle recipe in this industry – a lot of research is required to achieve its goals, and establishing a plan before launch is essential. And above all, always keep in mind that without an invested and authentic community, the risk of failure is much greater.