Ethereum Vs Solana: Which is Better for NFT Marketplace?
What does NFT Marketplace Means
What is an NFT
NFT stands for Non-Fungible Token which means the unique identity of any digital asset like image, audio, or video. Each NFT is unique and cannot be repeated. Creating an NFT is the only method to protect your digital Artwork. The NFT is very secure because IT is stored in the Blockchain.
Any NFT majorly contains two things:
- NFT art such as an image or video
- The public address of the owner
What is the NFT marketplace?
- NFT marketplace is a digital platform where users can create their own NFT and sell them at an auction or a fixed price.
- Buyers can also discover different NFT artworks on the marketplace and place a bid on their favorite NFT.
- All the Trade transactions are stored on the blockchain so every user can see who is the current and previous owners of the NFT.
What things matter to make the best NFT marketplace?
NFT marketplace has two different users such as Creator and Collector.
What is a creator?
The creator is an artist who loves to create digital arts with different collections.
Here is the list of top NFT creators
- Beeple (Mike Winkelmann)
- Trevor Jones Art (Trevor Jones)
What is a collector?
A collector is a single user or group who is passionate about digital arts and they buy different arts because they found some emotional attachment or social aspect in that artwork. Sometimes these collectors buy NFT for just short-term or long-term profits.
Creator mindset on NFT marketplace
Every creator is looking for Four things on the NFT marketplace:
- Low minting cost
- Low Gas Fees
- Security of NFTs
- Less time to mint
On average every creator mint 100–500 NFT on Marketplace to provide different choices to their customer. So each NFT creation requires some amount of Cost (called Minting Cost) So every Creator wants a Low Minting Cost.
After the Minting Bunch of NFT Creators start listing this NFT on an Auction. So it requires some amount of Gas price (Price for adding data on the Blockchain) So every Creator wants Low Gas Cost.
As per The Verge report, $1.7 million in NFTs were stolen in an apparent phishing attack on OpenSea users 254 NFTs were stolen in 3 hours. So every Creator wants the Security of his NFT.
Due to rapid advancements in technology, the pace of life has increased. Nowadays, people hate to wait for a long time to accomplish any task. So every creator wishes minimal time to mint and publishes NFT.
Collector mindset on NFT Marketplace
Every collector lookout for three things before purchasing NFT on any marketplace:
- Low Transaction Fees
- Security of NFTs
- Less time to buy
On average Every Collector buys 10–100 NFT as per their Choice. So They can Easily Resell Their NFT when they find the best Returns. So Whenever they buy NFT there are Gas fees required. So every Creator wants Low Gas Fees.
Every Collector or Fan wishes that he will get authenticated NFT So the security of NFTs in the marketplace is a major concern.
Sometimes Collectors want to grab a better deal on NFTs so they can secure higher returns. So Collector wants Faster Transaction processing time so they can become an owner of an NFT as soon as possible.
“Know what your customers want most and what your company does best. Focus on where those two meet.” — By, Kevin Stirtz
So Conclusively, 4 Things matter to make the Best NFT marketplace:
- Low minting cost
- Low Gas Fees
- less time to mint and buy
Pros and Cons of NFT Marketplace using Ethereum
There’s no doubt that Ethereum is the largest ecosystem of the NFTs sector, with thousands of projects of all kinds building on it — So it’s no shock that it powers the endless larger part of NFTs.
As per Coinmarketcap Ethereum currently has a roughly $487 billion market cap. Due to this giant popularity, the Ethereum network is pretty congested so it has some pitfalls.
Let’s talk about some Pros first
- You’ll have access to a bigger market.
To be precise, Ethereum is used by around 95% of the NFT ecosystem, thus it’s no surprise that OpenSea, Rarible, Nifty Gateway, and other NFT marketplaces are among the first places investors check when looking for an NFT marketplace.
- Network security is very high.
A gigantic sum of computing control contributed by all the computers on the arrangement confirms and secures each exchange, making it essentially inconceivable for any third party to meddle.
- The average price of NFTs is substantially greater.
As per Fool.com In January, 2.4 million NFTs were sold on OpenSea, the largest NFT marketplace. In January, the average price of an NFT fluctuated between $1,400 and $6,900.
Let’s discuss some cons of the ethereum blockchain
- High Minting Cost
As per the ZIPMEX Report average NFT Minting cost on Opensea is around 50$ to 100$ which is very expensive for every digital artist. If an artist wants to publish their NFT album which consists of 20 NFT then the creator will have to spend 1000–2000$ to just launch their NFT on The Blockchain.
- High Gas Fees
As per the theBybit report average Gas fees with a gas limit of 21,000, a base fee of 100 gwei, and a tip of 20 gwei, the total fee is 2,520,000 gwei, or 0.00252 ETH. This would be identical to around $7.49 (at $2,971.81 for one ETH). IT is very expensive as compared to other blockchains.
- In terms of NFT storage, it is less secure
Security is one of the main factors for both creators and collectors.
As per The Guardian report ‘’ Collector buys fake Banksy NFT for £244,000“ in this incident Artists even do not know that their works are sold without their consent. This NFT was put up for sale on Opensea.io. Many Ethereum-based NFT marketplace is not secure because they do not provide complete On-Chain solutions.
For instance, In a few cases, NFTs acquired by personal craftsmanship partners may get blocked off. When a client buys an NFT, he gets a reference to the record where the work of art is put away. This work of art isn’t logged into the blockchain, it can be put away anyplace. NFT platforms may choose to shut their windows at whatever point they need. As a result, a client cannot show his record even though it still exists.
- Longer Transaction processing Time
As per Bitcoin.com an average Transaction waiting time on Ethereum is around 1 to 5 min on the standard Gas fess. Sometimes It may last longer as per the Ethereum network congestion.
As per the CNBCTV18 Article, JP Morgan examiner Nikolaos Panigirtzoglou gauges the non-fungible token resource exchanging has fallen off from 95 percent at the beginning of the year to generally 80 percent presently. Agreeing to Panigirtzoglou, the most offender of this drop appears to be Ethereum networks’ tall clog (traffic on the network) and transaction fees.
What is Solana?
Solana is the Fastest Public blockchain platform. It is a purely decentralized blockchain. Solana Never used Layer2 or SideChain.
Let’s talk about Solana’s best feature:
- Solana is Very Cheap
Reason: Solana’s Average cost per transaction is $0.00025 which is the cheapest one among the other blockchain
- Solana is Super Fast
Reason:- Solana can process 710,000 Transactions per Second which is faster than VISA
- Solana is Scalable
Reason:- Solana uses “Proof of History” as a consensus algorithm which is very unique from other blockchains. Solana is regularly alluded to as the foremost versatile and first truly web-scale blockchain in the world.
- Solana is highly Secure
Reason:- The Solana network is completely secured with the help of CPU and GPU ability and it removes the need for SideChains or any layer-2 blockchain-like polygon that compromise security and adaptability.
Strengths and Weaknesses of Solana for the NFT Marketplace
As we all know that 4 key aspects are foremost to building a Top NFT marketplace. But Ethereum and other blockchains are unable to cover these 4 factors.
Solana comes with these 4 characteristics and provides us with a fruitful solution for the NFT marketplace which was always wanted by our customers.
- Low Minting Cost — As per Solana.com average minting cost is $1.5
- Low Gas Fees — As per Solana.com average cost per transaction is $0.00025
- Highly Secure in terms of NFT storage — Solana offers On-chain features. For instance, From auctions to perpetual royalties coded right into the NFT, Solana supports a fully decentralized on-chain experience for artists and collectors.
- Faster Transaction speed — Solana can execute as many as 65,000 TPS.
The Solana network has a few temporary weaknesses concerning the NFT Marketplace.
- Rug pull scams
This is a common issue with developing technologies since scammers will try to identify and exploit whatever flaws they can find. As per Businessinsider.com NFT scammers made off with $1.3 million in Solana after a ‘rug pull’ despite the project creators being vetted.
- Lower exposure with a smaller market
Solana launched in April 2019 so it is a pretty new blockchain as compared to Ethereum. Solana’s NFTs market capital is less so the average NFT selling price is $1000 to $2000.
- Downtimes are more frequent
Growing ecosystems has several risks in the beginning. The Solana arrange has endured a few downtimes, constraining clients to sell their positions as they were incapable of beating up their collateral amid the outages.
Why Solana is a better option than Ethereum for the NFT marketplace
Nowadays, NFT marketplace development using Solana is the most preferred by the business owner because Solana offers excellent marketplace features which are not offered by other blockchains.
While Solana’s ecosystem isn’t quite as large as Ethereum’s, it is still expanding. In fact, since the beginning of 2022, Solana’s user base has been increasing at a far quicker rate, and analysts from investment firm JP Morgan have predicted that it could eventually eclipse Ethereum.
Solana is the permissionless blockchain so that’s why Solana’s mempool management is pretty different from any other permissioned blockchain so Without increasing network throughput, Solana validators can manage a mempool size of 100,000. That means that with a network throughput of 50,000 TPS, a 100,000 transaction mempool is executed in a matter of seconds. That’s what makes Solana the foremost performant permissionless blockchain in the world. So our customers can get instant transaction results on the NFT marketplace.
Solana has the best ecosystem for the NFT marketplace
- NFT Standard
Center on the artwork, not composing a new smart contract. The Solana NFT standard and minting program offers extraordinary customizability, with an ecosystem-wide bolster.
- Permanent storage
Design the finest web3 capacity alternative for your extent, whether changeless, decentralized capacity given by ARweave, or other prevalent benchmarks like IPFS.
Each blockchain has its advantages and disadvantages, so it really comes down to what you want to do with each one. If you want to build an NFT marketplace that has low transaction fees, super-fast transaction processing speed, and a high-throughput blockchain with scalability, then Solana might be more suitable for you. More than 6 million NFTs are minted on Solana. Don’t Wait, Build Your NFT Marketplace on Solana with Reveation Labs.
Originally Published at Reveation Labs Blogs Page