Recently, the market for Non-Fungible Tokens (NFTs) has mushroomed. NFT derived its concept from the concept of tokenization in Ethereum, aimed at distinguishing tokens using distinguishable signs. As their unique identification, tokens of this type can be bound with virtual/digital properties.
NFTs allow for the free trade of any marked property with customized values based on factors such as age, rarity, liquidity, etc. Decentralized applications (DApps) have benefited greatly from it. The total amount used on completed NFT sales at the time of writing (May 2021) is 34,530,649.86 USD. This new market generates huge interest worldwide due to its thousandfold return. In spite of this, NFTs are still a very young technology, and the development of the NFT ecosystem is still at an early stage. Those new to the system may feel lost because there is no systematic summary of its frenetic evolution. The NFT ecosystems are examined in this report with several aspects in mind. A review of state-of-the-art NFT solutions is followed by a description of their technical components, protocols, and standards. Next, we discuss their design models, opportunities, and challenges from the perspective of security. Currently, this is the only systematic investigation of NFT ecosystems to our knowledge.
ConsenSys launches a more energy-efficient NFT ecosystem
Despite great advances in the technologies that have enabled digital artists to create their work, little or no progress has been made in changing their methods of profiting from their work.
Despite the fact that crypto’s early adopters have taken most of the attention thus far, a number of institutional artists have begun to experiment with token-based art. There have been some barriers for early artists because of environmental concerns due to the Ethereum blockchain. This technology requires incredibly high transaction fees and usage of energy, something that has created controversy for early artists.
The Flow blockchain, the motor behind Dapper Labs’ NBA Top Shot product, has been gaining momentum recently as a possible replacement for Ethereum, as it offers higher speed, lower costs, and less energy usage than Ethereum. We recently saw the debut of a new “layer-two” entry from ConsenSys, called Palm, which operates on Ethereum’s main network while supported by MetaMask, a popular crypto wallet.
On the platform’s NFT Studio, Damien Hirst unveiled his first NFT project, the “Currency Project,” as part of Palm’s launch.
Despite Ethereum’s commitment to switching from proof-of-stake to a more energy-efficient consensus structure, it’s not clear when it will occur. In the current state of the network, proof-of-work (as with bitcoin) is used to prioritize where the next blockchain should be mined in order to consume less energy in the process. It is for this reason that crypto mining operations have had to invest in upgrading hardware in order to keep up with the latest technology and maximize power usage. By using proof-of-work, most of that is eliminated, and instead trust or stake is used to decide which nodes to choose to mine the next block. Several security compromises have been necessary to work around, yet plenty of crypto enthusiasts aren’t entirely satisfied, even though their proponents argue that preserving the environment should take precedence.
This eco-system is claimed to be 99% more energy efficient than proof-of-work systems, according to a press release by Palm.
While Dapper Labs’ Flow is not interconnected with Ethereum developers, Palm’s announcement highlighted many industry partnerships, including Nifty, which Palm benefits from. This news came as Dapper Labs announced its giant $305 million fundraising round, which will allow the company to build on the momentum of Top Shot, which has given the broader NFT space the surge of enthusiasm it’s currently experiencing.
Consenysys’ partnership with artist Damien Hirst has created an efficient NFT Ecosystem!
Consenysys is one of the largest providers of Distributed Ledger Technology (DLT) today. The company, who offers a wide range of services for blockchain-based projects, recently partnered with artist Damien Hirst. This creative partnership has been developed in order to promote a more energy efficient and environmentally friendly ecosystem for the future. The project, which was the result of the collaboration between the Consenysys team and Hirst, includes an effort to produce a range of ‘NFT’ digital artworks that will be launched on the ethereum blockchain.