NFT is an important stage in the development of the crypto industry in 2021 and from now on it will forever become an integral part of it! Why are non-fungible tokens so important for the crypto industry now? Why should modern decentralized platforms provide services related to these tokens? And also why is there a problem of non-fungible tokens on Layer1 blockchains right now and how will Layer2 help us?
Thanks to NFT, the performer Grimes earned approximately $ 6 million in 20 minutes, and the artist Beeple - $ 69 million for one picture. According to Forbes, only in February 2021, the trade of digital objects with the help of NFT amounted to $ 500 million. In the same year, Christie’s auction house held the first sale of a fully digital collection of works by the famous artist NFT Beeple, offering the buyer to pay the bill using cryptocurrency. All this may seem like news, far from the everyday problems of most artists, but it’s not.
Thanks to NFT tokens, content authors (artists, musicians, video makers, bloggers) can earn money without intermediaries, receiving funds directly from the audience. As you know, they all have a lot of difficulties when it comes to protecting their copyrights on the Internet.
The NFT system of work allows you to add detailed attributes, such as the identity of the owner, extensive metadata or secure links to files - all this helps artists to preserve and protect copyrights to their work.
The scope of use is not limited to paintings (the most famous case occurred with Banksy: his work was burned and turned into a token). Anything can be transferred to the blockchain: a music recording, a video clip, a gif, text, game items and even a tweet (Twitter creator Jack Dorsey sold his first post for $ 2.9 million, the funds went to charity).
From my experience, I can say that I am the holder of the Binance NFT token from back in 2018, which they gave to their regular users. And I’m not going to sell it yet, because it’s not only a digital asset, but also a whole story. Maybe in 20 years my token will go under the hammer at some big auction, or maybe I will pass it on to my children) I don’t mind at all getting the historically important for the crypto industry unique NFT from ZKSwap)
Given such a huge interest and historical value of NFT, any modern project in the crypt should take into account reality and provide services related to operations with this type of tokens.
But also with all the positive news, there are problems. One of these problems is that the NFT on the most popular blockchain, Ethereum, is just a record in the table of a smart contract serving operations with this token. Information about the media (metadata) and the media itself to this token, with rare exceptions, are not stored on the blockchain.
NFT = blockchain entry + metadata + media
Have you figured out about the entry in the blockchain, but where is everything else?
Storing large amounts of data in the Ehereum blockchain is very expensive. Even if you just want to store the name and, for example, the vector of characteristics of your NFT sword in the blockchain, it will cost you an additional 20-30 dollars at the time of the release of this sword. And every change in its characteristics (if you improve it, for example) will also need to be made to the blockchain, which means paying for gas. And storing large media is not just expensive, but also inconvenient.
In this case, ZKSwap can help us, which will act as a Layer2 for the Ethereum blockchain, store media data in itself and allow almost free operations with your NFT and make some changes to it (if necessary). In connection with the above, I consider ZKSwap with its missing gas fees to be the ideal solution to this problem.
My expectations for the active implementation of ZKS non-fungible tokens are huge! I would really like a company with advanced technologies and huge traffic to create a platform that will become a concentration of all the functions necessary to work with NFT. I’m also looking forward to a launchpad and collaboration with renowned digital artists.