NFTs, NFT minting, and NFT marketplaces have become great assets to the Cardano blockchain. More than 56,000 NFT collections have been launched on Cardano resulting in millions of NFTs minted. Cardano is already home to a growing ecosystem of NFT infrastructure, NFT minting engines, and NFT marketplaces such as Fibo.
In this blog, we’ll explain 5 reasons why Cardano NFTs are unique and why they matter to you.
Reason #1 – No need for smart contracts to mint NFTs
In Cardano, crypto tokens such as NFTs can be created without requiring the usage of a smart contract as it’s a basic built-in function of the Cardano blockchain. This lowers the potential for NFT minting errors and bugs during the lifetime of a token.
Cardano blockchain is called a multi-asset network, because its extended-UTxO (eUTXO) model allows transferring custom assets in the same transactions right along with ADA itself, natively.
The tokens in Cardano are part of the Cardano blockchain itself.
This leads to two important results:
- First, the tokens in Cardano have the same rules as ADA and both can interact freely with each other.
- Second, creating a token is a simple and reputable process that leaves no room for human error.
This simplicity in design and security has made Cardano a highly popular network for NFTs.
Different NFT collections can be easily created with all of the same security attributes of any other Cardano-based token.
Reason #2 – Batch transactions
Most people think of a crypto transaction as a transfer of a single cryptocurrency or token from Wallet A’s address to Wallet B’s address.
Every time you want to move a token, you need to create a new transaction that can only go to a single destination address.
Cardano on the other hand uses the eUTXO accounting model which gives the network unique advantages such as batch transactions.
A single transaction done over Cardano can bundle multiple token transfers to several wallet addresses. This means that the creator of an NFT collection can quickly transfer the NFTs to a bunch of people and pay only a single low transaction fee.
Since a single transaction can have multiple destinations and tokens, using Cardano is much more cost-effective for users.
Reason #3 – Metadata as part of the transaction
In Cardano, the metadata that helps authenticate an NFT is part of the minting transaction.
This metadata is a text description of the attributes of the token that are independent of the entry on the blockchain.
Cardano NFT marketplaces use this metadata to show information about the Cardano NFTs on their websites.
Thus, there is a permanent link between the NFT asset and this information that is kept in the Cardano blockchain.
This makes Cardano NFTs easier to validate and secure as everyone has access to the same information. There is no need to trust third-party storage solutions that are prone to erasing the data, modifying it, or even mislabeling the metadata of an NFT.
Reason #4 – Low and deterministic fees for fast NFT transactions
The transaction to mint an NFT on Cardano is based on the quantity of NFTs and the metadata requirements of the collection. Once the minting fee is paid, all subsequent transfers of the tokens only pay the base transfer fee of the network.
Unlike smart contract-based NFTs where fees can be extremely high due to blockchain network congestion, the base transaction fee on the Cardano blockchain is flat and applies to all simple transfers.
This makes using the Cardano blockchain faster, predictable, and much more reasonable for those looking to launch NFTs.
Reason #5 – Expanding NFT market
Cardano NFT market is growing as additional NFT collections continue to be minted on Cardano and new infrastructure projects continue to be developed despite current market conditions. Cardano is a hub for NFT collections, with many artists, developers, and collectors looking to migrate to Cardano blockchain for NFTs with its unique advantages as an environmentally sustainable and decentralized smart contract platform that offers users fast transaction times and reasonable fees.
This has created an atmosphere of innovation and growth unlike that found on other networks. The Cardano blockchain is at the beginning of an adoption curve, and it’s attracting a lot of attention from investors, retail users, companies, and developers.
With many NFT and blockchain myths out there, it’s important to know the truths behind NFTs to understand the full picture of where NFTs and Web3 are headed in the years to come.
Go to NFT marketplace Fibo to mint, buy, and sell Cardano NFTs
Developed by EMURGO, a founding entity of the Cardano blockchain, Fibo is a Cardano NFT marketplace empowering artists and collectors for a positive social impact.
Fibo leverages Cardano’s open-source and environmentally-sustainable blockchain to provide an all-in-one NFT platform to mint, buy, and sell Cardano NFTs.
To get started on Fibo, please download Yoroi Wallet Google Chrome Extension and send some Cardano ADA to your account.
Also, please join our Fibo Discord using the link below to become part of our community.