- It is important to select a platform that allows for interoperability.
- The blockchain network shouldn’t be involved in any unethical practices.
One of the primary decisions that one has to make while launching an NFT collection is selecting the blockchain on which the NFT will be minted. Now, if everyone chooses famous blockchains such as Ethereum and Solana, the network tends to get saturated, which wouldn’t be beneficial for the NFT collection.
It is better to launch the collection on blockchains that are unsaturated or less saturated as compared to other blockchains. There have been famous brands that have opted for less saturated blockchains to launch their NFTs. For example: McLaren launched two of its NFTs on the Tezos in April last year, Volkswagen launched its NFT collection on Polygon, etc.
On the contrary, some brands launched their NFTs on famous blockchain networks like Ethereum and couldn’t perform well. For example, in December 2022, Lamborghini launched its NFT collection on Ethereum and since then they have been missing in action in the NFT market. In addition, Porsche also launched their NFT collection in January 2023 on Ethereum but could only manage to sell 31% of their collection and closed the mint thereafter.
The Repercussions of Choosing the Wrong Blockchain
Choosing the wrong blockchain for the collection can be daunting as well as lead to a waste of time, money, and resources, which is why it is important to do thorough research on all the available options and then decide what’s best for the collection.
It is pivotal to choose a chain that provides interoperability, as it is important for the user’s NFT collections to interact with other applications, wallets, and wallets on the platform. If the platform lacks interoperability, it will become tough to discover their NFT collection, making it harder for individuals to engage with the collection while limiting its reach to potential buyers.
Another major aspect to keep in mind while selecting a blockchain is finding out the public’s perception of it. There are blockchains that have been subject to controversies and immoral practices; associating their collection with these kinds of chains can cause a negative perception of their collection and can even lead to reduced interest from potential buyers.
Factors to Consider While Selecting a Blockchain
Listed below are a few non-negotiable factors that one should look for in a blockchain before launching an NFT collection.
- Transaction speed
Choosing a blockchain with high transaction speeds is quite important for the success of any NFT collection. This is because if transaction speed is low for any chain, then the users will have to pay more transaction fees in order to be prioritized over other buyers. There are blockchains such as Cardano, Tron, Cosmos, Waves, etc. that can process a large number of transactions within seconds.
- Transaction Cost
It is crucial to opt for a blockchain network that isn’t heavy on the pocket of the buyer. It is important to thoroughly analyze the cost structure that the blockchain offers. As some blockchains charge astronomical fees, selecting an economical blockchain can lead to the widespread adoption of NFTs.
- Smart contract functionality
A robust smart contact structure ensures platform security and establishes trade terms. It instills trust and holds strong ground for the NFT collection. A well-planned smart contract structure enhances the efficiency of the platform and makes it more effective.
