Home Coins Ethereum (ETH) Spikes in gas prices slowing growth of new NFT marketplaces

Spikes in gas prices slowing growth of new NFT marketplaces

High gas prices have become a problem for non-fungible token (NFT) marketplaces, especially as they look to mint at scale, the founder of a start-up said. 

Sean Papanikolas, founder of NFT marketplace Cargo, told Cointelegraph in an interview that the NFT sector is at an inflection point. But scalability weighs on new players in the sector now that gas prices have spiked. He said:

“Now, in 2020, platforms are starting to see the scaling issue now due to the spikes in gas prices. Some platforms have halted minting while gas is high and other platforms see a major decline in activity.”

High gas prices have caused some platforms to start working on layer-2 solutions and some are eyeing other chains, leaving Ethereum altogether, warned Cargo’s founder. To counter higher gas fees, Papanikolas said Cargo launched a solution based on ERC-721 and ERC-2309 standards. 

But if blockchain companies want to expand their businesses within the NFT landscape, Papanikolas warned it’s not going to be as easy as they think:

“I think blockchain companies need to be prepared for the level of software engineering effort it will take to overcome the technical hurdles and the limitations of smart contract development on Ethereum and then how those pieces will work with traditional systems. The competition will continue to increase as well.”

Currently, users can spend a small amount of Ether (ETH) at current prices to secure gas that can be used later without the risk of the price going up. This is something other industry players have talked about in the past. In a previous interview with Cointelegraph, Qtum co-founder and lead developer Jordan Earls said this causes the network “to not respond properly to an increase in gas prices like we see today, as some people with access to these tokens ca use this cheap gas now, but also get their transaction highly prioritized without actually spending any ETH.” Other companies also pointed out that NFT firms are exploring other means to avoid high gas prices.

Source link

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
474FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,552FollowersFollow
2,230SubscribersSubscribe
USD - United States Dollar
EUR
1.18
GBP
1.31
CHF
1.11
NOK
0.11
JPY
0.01
CAD
0.76
AUD
0.71

Most Popular

Why the PayPal Rally Isn’t What It Seems, and Why That’s OK

The bigger you are, the bigger the splash when you jump in the water. And when it comes to mainstream payments companies, there are...

Bull or bear? Pros don’t care! Here’s 3 strategies every trader should know

Those new to investing might think that professional traders spend the majority of their time staring at screens day and night in order to...
bitcoin
Bitcoin (BTC) $ 13,012.85
ethereum
Ethereum (ETH) $ 405.01
ripple
XRP (XRP) $ 0.254644
tether
Tether (USDT) $ 0.999379
bitcoin-cash
Bitcoin Cash (BCH) $ 270.30
bitcoin-cash-sv
Bitcoin SV (BSV) $ 180.72
litecoin
Litecoin (LTC) $ 58.30
eos
EOS (EOS) $ 2.74
binancecoin
Binance Coin (BNB) $ 30.07
okb
OKB (OKB) $ 4.60
tezos
Tezos (XTZ) $ 2.15
leo-token
LEO Token (LEO) $ 1.26
cardano
Cardano (ADA) $ 0.106124
monero
Monero (XMR) $ 131.72
stellar
Stellar (XLM) $ 0.083272
chainlink
Chainlink (LINK) $ 12.07
huobi-token
Huobi Token (HT) $ 4.43
tron
TRON (TRX) $ 0.027054
usd-coin
USD Coin (USDC) $ 0.999130
dash
Dash (DASH) $ 71.05
neo
NEO (NEO) $ 17.89
iota
IOTA (MIOTA) $ 0.277004
nem
NEM (XEM) $ 0.105006
zcash
Zcash (ZEC) $ 62.62
maker
Maker (MKR) $ 583.84
paxos-standard
Paxos Standard (PAX) $ 1.00
ethereum-classic
Ethereum Classic (ETC) $ 5.56
vechain
VeChain (VET) $ 0.011811
true-usd
TrueUSD (TUSD) $ 0.999825
ftx-token
FTX Token (FTT) $ 3.88
kucoin-shares
KuCoin Shares (KCS) $ 0.880867
waves
Waves (WAVES) $ 3.25