Cross-Chain NFT Marketplace: A Beginner’s Guide

This article gives you a comprehensive insight into these NFT marketplaces. 

Cross-chain NFT Marketplace

Before getting directly into cross-chain NFT marketplaces, first, we have to understand the concept of cross-chain. 

A cross-chain protocol enables users to exchange data between multiple blockchains and enables interoperability between them. Individuals can communicate with one another directly using the cross-chain protocol. As a result, blockchains with comparable networks can exchange value and information.

Cross-chain functionality is the capacity of two separate blockchains to work together. With a traditional NFT marketplace, a user cannot sell an NFT minted on Ethereum on a different blockchain. It restricts the NFT to sell to a wider audience. 

Here, a cross-chain NFT marketplace can enable the smooth trading of a variety of digital assets as NFTs across different blockchains. It can manage and control the minting and trading of NFTs on different blockchain networks. 

Suggested Read | Cross-Chain DEX for Seamless Interoperability and Liquidity

The Working of Cross-chain NFT Platform 

Conventionally, NFT marketplaces do not have an interoperability aspect. However, a cross-chain NFT marketplace uses a system of an atomic swap, relay, and simplified payment verification that gives the systems the ability to communicate with different blockchains. This platform uses these systems in the following manner: 

Atomic Swap System

An atomic swap system facilitates the transfer of cryptocurrencies from various blockchains. This system in a cross-chain NFT marketplace enables the intersection of many blockchains. It makes communication between blockchains possible. 

Read More About Atomic Swaps

Relay 

A relay is a smart contract that receives and shares information among different blockchains. It enables the block validation of the host chain using proof-of-stake (PoS) consensus. 

Simplified Payment Verification (SPV)

SPV is a payment system that enables proof-of-work (PoW) consensus subset validation. It lets users check their transactions without downloading the entire blockchain. 

Also, Visit | How to Decide a Suitable Blockchain Consensus Algorithm

Why Develop Cross-chain Platform Over Single Chain Platform

Below we have listed multiple aspects of a cross-chain platform that makes it better than single chain platform:

Interoperability

Interoperability is a primary aspect of a cross-chain NFT marketplace. It enables users to mint and trade NFTs across multiple blockchains. So, a platform becomes flexible in terms of offering exclusive NFTs. 

Further, this aspect of the platform enhances the liquidity of various assets. 

Greater Scalability

The platform can support a high number of transactions. Users experience high performance without any delay or buffering in the transactions. 

Multi-wallet

A multi-wallet feature of the platform means more active users can engage in NFT trading. It allows investors to split their investments into multiple wallets and diversify their assets. 

Wide Range of Collection

A cross-chain technology-based platform offers an extensive variety of NFT collections from different creators on various blockchains. So, it increases the convenience for sellers and buyers. 

High Return on Investment (ROI)

A cross-chain NFT marketplace can communicate with multiple blockchains. So, it accepts a variety of assets from several domains. This aspect provides users with a high ROI due to a wider audience. 

Also, Read | Blockchain Interoperability: Importance, Challenges, and Solutions

Cross-chain Platforms: Real-World Examples

AxelarSea is a cross-chain NFT marketplace that enables traders to utilize tokens from any chain. It helps in NFT management across all chains. 

Another cross-chain platform is MetaNFT. The platform enables the simultaneous selling and buying of NFTs on Ethereum, Polygon, and BSC. 

Some other real-world examples of cross-chain platforms are Agoran, Moonbeam, etc. 

Check It Out | Building An Advanced NFT (Non-Fungible Tokens) Marketplace

Cross-chain NFT Marketplace Development

Cross-chain NFT marketplace development requires expert knowledge and experience. You can take assistance from a service provider like Oodles. 

We offer cross-chain NFT marketplace development services. Our developers have experience in creating high-quality solutions. You can discuss your project requirements with our skilled experts. Contact us today.