The Binance Smart Chain will still be criticized by some cryptographic fundamentalists for its “plagiarism” in the short term. In addition, it has been tested by the market for eight years compared to the Ethereum network. The BSC needs to focus on security and developer reputation in the future. , Continuous breakthroughs in performance and stability.
Original Title: “The Current Status, Challenges and Imagination Space of NFT Ecological Development on BSC”
Written by: Hu Tao
Lead
In 2021, NFT, a novel form of encrypted digital currency, seems to have become a hot topic in and out of the circle overnight, and “Everything is NFT” has become an iconic Slogan in the encryption community.
As a form of encrypted digital currency that can be connected to the real world, NFT has achieved rapid growth through effective combination with DeFi and at the same time with the help of the bull market wave of encrypted digital currency.
From the classic dunk shots of NBA star LeBron James, to the first tweet in the history of Twitter founder Jack Dorsey, to the digital work “Every Day: First 5000” by encryption artist Beeple With a high price of US$69.34 million, you will find that NFT is leading the encrypted digital currency industry from a niche circle to a wider general audience.
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According to the data of NonFungible.com, from 2017 to 2020, the total market value of NFT rapidly increased from US$31 million to US$320 million, with a growth rate of over 9 times and an average growth rate of 300%. In addition, according to a report recently released by Protos, the peak value of NFT single-day trading set an astonishing record of $102 million this year, and some industry insiders even predicted that the total market value of NFT this year could break through $700 million.
It can be said that 2021 is a well-deserved “first year of NFT”.
Under the explosion of the industry, who will become the preferred public chain for NFT projects?
On April 16, according to data from Coingecko, the total market value of NFT exceeded US$30 billion for the first time, setting a record high. Although the entire digital currency market suffered a “Black May” in May this year, the NFT market value was cut in half, but as the market gradually recovers, the NFT industry is slowly recovering. As of this writing (June 15), the total NFT market value has rebounded To 17.9 billion US dollars.
However, when the market is generally improving, some problems have been exposed one after another.
At this stage, most NFT projects are still running on the Ethereum network, but many users are still troubled by its limitations. It is no exaggeration to say that improving the performance of Ethereum has always been the direction of the NFT and the entire cryptocurrency industry. However, to this day, the high gas cost and network capacity problems have not been fully resolved. This matter is for digital currencies. The impact of the market is greater than initially imagined.
On the other hand, although the beacon chain has been successfully launched, it still takes a long time for Ethereum 2.0 to complete the deployment. In this case, some DeFi and NFT projects began to explore migration to other blockchains, including exchange public chains such as Binance Smart Chain (hereinafter referred to as BSC), and FLOW, which specifically targets NFTs. The public chain of the market.
In order to give everyone a more intuitive understanding of the Ethereum, BSC and FLOW public chains, let us speak with data and compare these three most important public chain infrastructures for the NFT market (data comes from the Internet, data extraction time June 15, 2021):
Taken together, BSC leads Ethereum in terms of performance and transaction costs. The current network block time is basically about 3 seconds, and the average daily transaction volume has stabilized at more than 5 million transactions. Recently, the number of BSC’s only active wallets has reached the highest 1,293,686, which is 1.77 times that of Ethereum during the same period. In addition, compared with other similar exchange public chain products on the market, the BSC miner reward is gas, and it will be distributed according to the miner’s mortgage ratio.
In contrast, although there are 11 crypto projects with a lock-up volume of more than $1 billion on Ethereum, it should be noted that these projects have basically been online for three years, which shows that BSC supports DeFi and NFT. It has its own unique advantages, otherwise it would be difficult to attract such a large amount of locked positions in just a few months.
Recently, Binance also launched the second phase of the Most Valuable Builder (“MVB”) accelerator program. The theme of this round is “NFT Big Bang”, which will focus on the NFT ecology and innovative NFT on BSC. +DeFi development and high-performance infrastructure construction. The selected project team will have the opportunity to receive bonuses, community, investment and other incentive resources from Binance to jointly create the development of the BSC ecosystem. As of the beginning of June 2021, the number of MVB registered projects has reached 356, and the total lock-up volume of projects has reached US$1.8 billion.
In fact, in addition to stronger network performance and lower costs, BSC has also performed well in terms of infrastructure including extensive wallet support, fiat currency deposit channels and payments, NFT bridges, and APIs. The BSC ecosystem is largely composed of infrastructure and tool projects, bridges to achieve cross-chain interoperability, APIs for seamless data sharing and processing, and security projects that analyze the network and provide risk assessment;
In terms of user experience, BSC currently has many well-known wallets that support the ERC721 standard and maintain a good security record, such as Trust Wallet, MetaMask, Math Wallet, SafePal, etc., as well as Binance Extension Wallet.
Through the establishment of a cooperative relationship with TransakFinance, BSC has now created its own legal currency deposit channel, allowing users to use legal currency to purchase BEP-20 assets without having to go through the trading platform. BSC is also compatible with payment products such as Binance Payment and Binance Card. Users can receive and consume supported tokens.
The status and challenges of NFT ecological development on BSC
Data source: BSCProjectorg
Although it has been less than a year since it went online, the degree of NFT diversification on BSC has been relatively high. According to BSCProject data, at the time of writing, BSC has launched a total of 650 projects, of which NFT mainly covers six vertical ecological fields, namely: digital art, games, meta universe, social media, NFT+DEFi and infrastructure, many of which are The star projects of NFT tracks, such as:
- BakerySwap, as a member of the Marketplace track in the BSC NFT ecosystem, it is a decentralized exchange (DEX). Unlike many DeFi projects, BakerySwap is built on BSC and adopts an automated market maker (AMM) model, which makes it the first AMM and NFT platform on BSC.
It is worth mentioning that Maye Musk, the mother of Elon Musk, recently revealed that it will launch its #DiamondsAreForever NFT with Kodak on June 18th, and the blind box series will be launched on June 24th BakerySwap.
- Dego, as a member of the DeFi+NFT track in the BSC NFT ecosystem, Dego brings a new concept of a sustainable DeFi ecosystem. It uses a modular combination design concept to combine different products into one system to achieve 1 The effect of +1>2, and can be used in the governance, mortgage, fee and other scenarios of the NFT ecosystem.
Not only that, there are currently 6 crypto projects with BSC locked up more than US$1 billion, namely: PancakeSwap (US$7.68 billion), Venus (US$2.66 billion), Belt Finance (US$1.77 billion), MDEX (US$1.54 billion) USD), Pancake Bunny (1.08 billion USD) and Ellipsis (1.04 billion USD).
In contrast, although there are 11 crypto projects with a lock-up volume of more than $1 billion on Ethereum, it should be noted that these projects have basically been online for three years, so it shows that BSC is in DeFi and NFT It has a special advantage in support, otherwise it would be difficult to attract so much lock-up volume in just a few months.
As more and more NFT players try to enter BSC, its competitiveness is bound to increase further. In the long run, several major NFT ecosystem categories and use cases currently dominated by Marketplace, games, DeFi+NFT and artworks will also change , Some other more sustainable NFT ecological categories and use cases will enter BSC .
But because BSC is compatible with EVM (Ethereum Virtual Machine), it is easy to make BSC clones of Ethereum dApps and NFT. This problem has also caused criticism from the crypto community, such as Binance Punks (Bunks), this project and the Ethereum area The CryptoPunks on the blockchain are very similar. Bashmasks is also considered a “copy” of the Ethereum NFT art project Hashmasks, and Musical Beats also seems to be “copying” EulerBeats.
To a certain extent, we can think that BSC is a community-driven public chain, and anyone can deploy on it. Under the background of the ecological explosion, project quality will inevitably appear to be uneven, innovative and imitated. . In fact, the BSC community has been advocating innovation, such as the NFT-oriented Cybertino, which is the world’s first interactive NFT market for influencers and their fans, and has signed a large number of top influencers with more than 200 million fans.
In the short term, BSC will still be criticized by some cryptographic fundamentalists for its “plagiarism”. In addition, it has been tested by the market for eight years compared to the Ethereum network. In the future, BSC needs to focus on security, developer reputation, and stable performance. Continuous breakthroughs in aspects such as sex .
In the next 3 to 5 years, what kind of public chain is needed to adapt to the NFT explosion?
Frankly speaking, the cryptocurrency industry may prefer to see further innovations in NFTs in a macro sense, such as:
Partial ownership of real assets: Imagine that if the next real work of a certain crypto artist allows people to have partial ownership of it, then NFT investors will be rewarded when they are resold;
Derivatives: NFT mortgage, which means that after purchasing NFT, people can mortgage (lend) it and use it to purchase other assets;
Interoperability between all platforms: NFT can be used across different ecosystems. Imagine BSC, Ethereum and FLOW, and even seamless interaction with other exchanges’ public chains-in fact, Binance’s NFT trading platform MarketPlace It will be launched on June 24th and will focus on supporting the BSC ecosystem.
It is understood that the platform has collaborated with the British Music Award winner Lewis Capaldi, visual artist Trevor Jones, e-sports team eStarPro, star Owen and Alphonso Davies and other celebrities, and will release their NFT works for the first time.
In order to achieve the above effects, the NFT industry may put higher requirements on the public chain in terms of performance and threshold. Compared with Ethereum, NFT based on the BSC ecology does have certain advantages.
Undoubtedly, the NFT world is full of vitality and great potential, and more and more NFT projects are already eager to try, accelerating the mainstreaming and de-circulation of NFT. With the continuous improvement of the public chain infrastructure of the exchange, many new ideas and ideas related to NFT New projects will accelerate their implementation.
NFT allows people to see unlimited possibilities. If Bitcoin has brought a revolution in financial sovereignty, then NFT has brought a revolution in digital asset ownership. This revolution may push the development of the entire blockchain ecosystem to Incredible height and dimension. Nowadays, NFT is no longer a “pure” digital asset, but a symbol of ownership. Having an NFT means having a claim on the ownership of the underlying asset .
With the acceleration of the development of Ethereum 2.0 and vertical NFT public chains like FLOW to create a better user experience and richer application scenarios for consumers, the future NFT competition landscape may be changeable, but it is undeniable that BSC’s The advantages are being further expanded, which will inevitably bring more far-reaching impact to the NFT ecosystem. Who is most likely to become the first basic public chain of the NFT is worth paying attention to.
For the crypto community, it is lucky to be in the first year of NFT. Who can become the “Next Big Thing” in this field? We will wait and see.
