The main point

  • Non-fungible tokens (NFT) are one of the most well-known and popular types of assets in the crypto industry.

  • From unique icons that can be purchased by individuals to VIP tickets to events, NFTs are becoming increasingly common across industries.

  • Ethereum, Polygon, and BNB Chain are popular blockchains — if you're interested in getting into the world of NFTs, you should know why they're popular and which blockchain to choose.

Learn about popular NFT blockchains and some important things to consider when choosing the right blockchain for your upcoming NFT project.

NFTs are quickly becoming one of the most popular types of assets in the crypto world. Because each of them is unique, NFTs are different from fungible tokens like BNB or bitcoin (BTC). Common uses include NFT metaverse items, works of art, and collectibles. However, what all NFTs have in common is that they are both supported and developed on the blockchain.

The Ethereum blockchain is often considered a one-stop shop for NFTs, although other NFT-enabled blockchains also exist. Today, more and more blockchains offer NFT support and NFT connoisseurs have more options for where to mint and trade NFTs.

In this article, we will take you through some of the most popular blockchains that support NFTs and how they differ from each other.

What is Blockchain?

First, let's define blockchain. According to Binance Academy: "Blockchain is a special type of database. You may have also heard the term distributed ledger technology (DLT) — in most cases, these two terms refer to the same thing. Blockchain has special unique properties."

"There are rules regarding how data can be added. Once stored, data is almost impossible to change or delete. Data is added over time in structures called blocks. Each block builds on the previous block and includes a piece of information that links back to the previous block. "

You can learn more about this topic in the article What is Blockchain Technology? Complete Guide​​.

Things to Consider when Choosing a Blockchain for an NFT Project

There are many factors to consider when choosing the blockchain you want to use for minting, including network popularity, creator fees, smart contract capabilities, and security.

For example, you should find out whether a blockchain is proof-of-work (PoW) or proof-of-stake (PoS). PoW is typically associated with lower speeds and higher transaction costs, so PoS is becoming more commonly used due to its greater speed and affordability.

However, PoS networks also differ from each other in terms of validation rules and participation rights. To help you with your choice, we have listed below some of the most important factors to consider when choosing a blockchain for your NFT project.

Transaction speed

Transaction processing and confirmation speeds vary from one blockchain to another. Speed ​​can be important for users who want to buy or mint NFTs as quickly as possible. In fact, it is not uncommon for collections to sell out immediately.

For example, a blockchain that can only process 50 or 60 transactions per second (TPS) can easily delay a project's NFT minting and transfer speed. Keep in mind that delays can also be worse during high traffic hours.

Transaction fees

Transaction fees are one of the most important factors that users and projects consider when choosing the right blockchain for their needs. Users pay transaction fees when submitting their transactions for confirmation. Network traffic can often impact these costs. For example, if a blockchain is busy, users may have to bargain with each other on fees to ensure transactions go through.

Sometimes, there are networks where transaction fees reach 50 USD per transaction. In such cases, users may hesitate to purchase or mint NFTs.

Security

Security is a top priority in the crypto world. Due to the underlying technology of blockchain, many networks offer a fairly solid, stable, and secure experience. However, this does not mean that hacking is impossible.

Blockchain hacks saw NFT investors, traders and creators lose their funds and data, while their development teams faced phishing attacks. An interesting example is the $600 million Ronin hack.

Common standards for smart contracts

EVM (Ethereum Virtual Machine) compatible blockchains use the same language to create smart contracts. If you already have Solidity expertise from experience using Ethereum or BNB Chain, you may find it easier to choose another network that is compatible with EVM. Many users are more familiar with the network and usually already have a compatible wallet.

Mechanism consensus

The blockchain consensus mechanism is a core part of the confirmation and validation process. The most commonly used consensus mechanisms in public blockchains are proof-of-work (PoW) and proof-of-stake (PoS). You should choose a network with a consensus mechanism that you think is most suitable for your situation.

We've discussed several factors to consider when choosing a blockchain for your NFT project. Now, it's time to explore a suitable blockchain for your NFT project.

Binance NFT now offers cross-blockchain compatibility across the Ethereum, Polygon, and BSC blockchains. The Polygon integration further makes Binance NFT a multi-chain open marketplace ecosystem that allows users to explore and trade a wide variety of NFTs across multiple blockchains.

Here are some of the key differences between the blockchains currently supported by Binance NFT:

BNB Chain (BSC dan BNB Beacon Chain) 

BNB Chain is a blockchain ecosystem that developers and innovators can use to build Web3 decentralized applications (DApps). BNB Chain seeks to maintain manageable fees and high-speed transactions with a Proof of Staked Authority (PoSA) consensus mechanism, which is a combination of PoS and proof-of-authority (PoA).

BNB Chain consists of two chains: BNB Beacon Chain which is used for governance through staking and voting, and BNB Smart Chain (BSC), which is a network that is compatible with EVM. BSC supports relatively short block times and reduces transaction fees compared to competitors. BSC has also attracted thousands of users and projects.

Ethereum

Ethereum is the largest and most well-known blockchain after Bitcoin which pioneered the NFT concept in 2014. When the NFT ecosystem began to take off in 2017 and NFTs began to develop into smart contract-based tools, Ethereum launched the ERC-1155 multi-token standard to support NFT adoption at scale wide.

Older token standards, such as ERC-20 and ERC-721, require the creation of separate smart contracts for each type of token. With ERC-1155, the smart contract interface now allows moving multiple types of tokens simultaneously, thereby saving on transaction costs.

However, there is one thing to note, Ethereum's popularity means higher transaction fees for minting and trading NFTs. As a result, other blockchains have launched as alternative NFT ecosystems.

After The Merge, Ethereum now uses a PoS consensus mechanism which makes it more energy efficient compared to the previous PoW system.

Polygon

Polygon is an EVM compatible blockchain that enables secure and instant transactions using EVM compatible coins such as ether (ETH). The Polygon Network is designed to function as a parallel blockchain to Ethereum and is one of Ethereum's first scaling solutions.

Polygon operates alongside the Ethereum blockchain on a PoS architecture. Polygon operates alongside the Ethereum blockchain on a PoS architecture. As a Layer 2 solution, Polygon shares many of Ethereum's characteristics, such as its reputation for security, smart contract features, and EVM interoperability. Polygon can offer a higher level of flexibility and scalability than Ethereum. Users often choose Polygon for its affordable prices and better speeds.

Binance NFT Marketplace Binance NFT is also pleased to announce the addition of the Polygon network to its supported chains. To switch between networks on the Binance NFT Marketplace, click the filter button, then select the respective network shown on this page:

Zero Trading Fees on Binance NFT Marketplace for Ethereum and Polygon Collectibles

To celebrate the launch of Polygon on the Binance NFT Marketplace, Binance is launching a zero-fee trading promotion for our NFT community! This promotion will take place from 21-03-2023 at 18.00 WIB until 11-04-2023 at 06.59 WIB.

Users are entitled to trade NFTs from all Ethereum and Polygon NFT collections available on the Binance NFT Marketplace without trading fees.

During this period, users can also enjoy 100% gas rebates in the form of USDT token vouchers. This provision only applies when users purchase their first three third-party platform NFTs from the Ethereum NFT collection available on the Binance NFT Marketplace! You can read this FAQ to find supported Polygon NFT contract addresses on Binance.

Please note that the fees for NFTs from third-party platforms are different from the fees for NFTs listed directly on the Binance NFT Marketplace. For more information, please read our announcement.

Choosing the Best Blockchain for Your Next NFT Project

Once you understand the basics of NFT blockchain, it will be easier for you to make the right decision regarding which network to use. Of course, this is not a decision that should be made hastily, so be sure to do adequate research on any blockchain you are considering using

Further Reading

  • (Blog) Bringing NFTs to the DeFi World for Real Benefits for Users

  • (Blog) Minting NFTs is Easy with Binance NFT

  • (Blog) How NFTs Are Transforming the Membership Experience