If you are looking to launch your own NFT you would know that choosing your blockchain is a crucial decision. When not done correctly it can cause a lot of damage to your project even before it is launched to the public.
Let’s look at the key differences between some of the most popular blockchain networks to help you make the right decision.
The Key Challenges
1. Low throughput rates
Today, only 30 transactions can be made on the Ethereum blockchain in one second. This number is very low for a highly used space, resulting in the high congestion of this blockchain. This is also because Ethereum uses a proof of work mechanism which requires much more energy.
2. Gas Fees
In order to mint an NFT, the transaction needs to be approved. Approving a transaction needs the energy of various miners. This energy is nothing but the fees you pay called gas fees. This is the reward for all the miner’s work.
Polygon, on the other hand, has a fraction of the gas fees you’ll have to pay on Ethereum. This is again because of the proof of stake mechanism used on a polygon, ie, instead of the entire network working to approve a transaction only a few with high stakes will approve the transaction made. Thus low energy means low costs.
For instance, you will need to pay $20 on Ethereum to make a single transaction, but on Polygon you would have to pay only in pennies.
Now, this doesn’t absolutely mean that you will have to pay no gas fees, selling NFT via Polygon is a very complicated process, which we will touch upon in the later section. But one part of it is converting every ETH to poly ETH which requires a fee.
3. Fluctuation of Gas Fees
We now know that the Ethereum blockchain is a highly congested network. This makes it super difficult and thereby not user-friendly. Since users are always bidding against each other to make a transaction. This makes it very expensive.
Polygon has very low congestion which is equal to almost no gas fees. Also, there is no bidding on a Polygon as you can sell your NFT at a fixed price.
Polygon however is not as secure as Ethereum and is not as popular as Ethereum. If your NFT audience is not an NFT expert, using polygon can be a daunting task as it is much more complicated than using Ethereum. This might eventually create friction in getting your audience to buy your NFTs.
So, if you are launching a wide range of NFTs from your own pocket, Polygon may be the fit for you because of its high-frequency transactions and low gas fees. But for an exclusive NFT where you want high bids, Ethereum may be your platform.