According to a forecast from decentralized application discovery platform, DappRadar, 2021 will be remembered as the year non-fungible tokens (NFTs) went mainstream, with trade volume exceeding $23 billion – a 230X increase from only $100 million in 2020.
For mining and trading NFTs, Ethereum’s blockchain has been recommended. However, the situation is fast changing, as high gas prices on Ethereum are driving many players away, providing a competitive edge to NFTs on other chains. The Bitcoin blockchain can also be quite beneficial in this situation.
What are the chances of that happening? Smart contracts on Ethereum and other networks are used to operate NFTs, DeFi protocols, and decentralized apps. Smart contracts, on the other hand, are not supported by Bitcoin. It does not natively support them.
NFTs “on Bitcoin” are secured (but not created) by the Blockchain (Like ERC721 tokens on Ethereum). Stacks, for example, offers the ability to issue and secure NFTs with Bitcoin.
Smart contracts are performed as part of Stack’s blockchain, and their transactions are aggregated into Bitcoin transactions. Despite the fact that it is a layer-1 blockchain, the scaling process is comparable to Ethereum’s.
Stacks’ smart contract features may also be leveraged to enable NFTs backed by the security and liquidity of Bitcoin, in addition to enabling DeFi protocols on Ethereum based on Bitcoin.
Transactions are quicker, cheaper, and more energy-efficient since Stacks’ work is done outside of the Bitcoin mainnet. One such marketplace is Redeeem NFT. On the site, you may find a variety of unusual luxury things, such as luxury purses, wallets, shoes, and art pieces.
The validated things are backed up by NFTs and stored in vaults. The NFT is linked with tokens that reflect tangible commodities ownership. Tokens can be redeemed for physical things at any moment.
Bitcoin transactions on the blockchain are settled utilizing the Stacks Network (STX). Clarity smart contracts can certify actual objects and record their position, origin, and validity.
While implementing NFTs on Bitcoin may appear strange, this advantage might be quite important. Because Bitcoin is the market’s main cryptocurrency, its most passionate advocates oppose all other crypto-assets and their networks.
With Stacks’ scalable technology, these NFTs may be able to stand out in an increasingly competitive industry.