Interoperability is one of the major obstacles when it comes to blockchain networks and NFT marketplaces. One technology that can solve this issue is cross-chain technology which facilitates connectivity across various blockchains. Similarly, developing an NFT marketplace with cross-chain technology can resolve interoperability-related challenges. This concept enabled by NFT development facilitates NFT traders to use NFTs and tokens across other blockchain and NFT marketplaces.
This article gives you a comprehensive insight into these NFT marketplaces.
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.
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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:
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
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.
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
Below we have listed multiple aspects of a cross-chain platform that makes it better than single chain platform:
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.
The platform can support a high number of transactions. Users experience high performance without any delay or buffering in the transactions.
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.
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.
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
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.
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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.