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bitsCrunch 2022 NFT WASH TRADE REPORT is ready for you.
Now you understand the need for a solution that considers the real pain points of NFT enthusiasts. If you’re someone into cryptos, blockchain, and NFTs, then Layer 2 solutions are apparent.
With scalability being the need of the hour, who wouldn’t benefit from a sophisticated transaction platform? In the conflict between the underlying blockchain architecture and overlaying networks, NFT Layer 2 solutions are challenging to negotiate.
Why wait? Let’s get to the point right away.
NFTs have become a very attractive concept, and crypto enthusiasts are flocking to it to make its best use. Its distinctive features have helped it become a million-dollar industry, a fact acknowledged by the crypto community.
With all the attention brought to the community, investment is soaring, and when this happens, transactions become sluggish and networks congested. Consequently, the NFT space would suffer from these limitations, which would lead to higher transaction fees.
NFT layer 2 technology came in as a hope for reducing these transaction fees and improving scalability. What exactly is the NFT layer 2 solution then? Answering that next.
An Ethereum layer 2 solution allows an application to scale by offloading its transaction processing to the Ethereum network (layer 1) while maintaining its decentralization, usability, and integrity. Thus, helping the audience to mint and purchase NFTs efficiently.
It provides seamless user and developer experiences. In addition to increasing throughput (transaction speed), Layer 2 solutions reduce gas fees. It can process nearly 9000 transactions per second. Immutable X, Polygon, and Polkadot are some of Ethereum layer 2 solutions.
No! We are not repeating Ethereum scaling and transaction speed as a “why” factor again. Yes, Layer 2 transactions on the Ethereum blockchain are fast, secure, and scalable. But how about being more eco-friendly? A solution that provides security and transparency while lowering carbon emissions.
How? Less gas fee simply means less energy, thus reducing carbon footprint. To embrace the fast-paced NFTs, we need such solutions to make the transactions more feasible, eco-friendly, and less costly. A network that can jounce off the limitations and establish a seamless process. Thus, it broadens the industry to all the crypto enthusiasts who want to make the best.
NFT layer 2 functions simply in three simple steps.
With such perks, how are any NFT layer 2 solutions working? Can we get a glimpse of it? Sure, Immutable X, the first of its kind, is a specifically made solution for NFTs.
Immutable X is a layer 2 protocol that supports both ERC-721 and ERC-20 tokens, making it an ideal solution for trading Ethereum NFTs. Using real-time trades, gas-free transactions, massive scalability, and eco-friendly mining and trading, they aim to simplify the process.
Many of the problems currently related to trading Ethereum NFTs are solved by layer 2 solutions like Immutable X. The Immutable X network allows you to trade any NFT on Ethereum.
By using Layer 2 from Immutable X, NFTs can be minted and traded on Ethereum for a lower cost while still maintaining the same level of security. Also available in the marketplace are games such as Guild of Guardians and Gods Unchained.
Further, some use-cases require fast transactions – with Ethereum’s current speed, this won’t quite work for off-chain games with non-fungible tokens as assets. So, many gaming companies like ESL Gaming partnered with Immutable X. They released a Counter-Strike: Global Offensive NFT collection.
Another example is Immutable X and TikTok released their first NFT collection, TikTok Top Moments, featuring celebrity TikToks like Lil Nas X. This shows as Layer 2 solutions enhance Ethereum’s capabilities, the so-called Ethereum rivals will become mere contenders.
NFT layer-2 is vital in making minting and trading effortless, faster, more efficient, scalable, and more trustworthy in the NFT marketplace. Due to the upcoming trend of NFTs, it is apparent that these tokens’ characteristics will make their trading price more expensive on-chain. NFT layer-2 alternatives are just about to scale the market by preserving layer-1 transactions.
Now that the NFT layer-two protocol is in place, it’s time to incorporate it into your own NFT marketplace. Using this implementation allows users to withdraw funds quickly, while fraud and other malicious activities can be exhaustively monitored, no matter how many funds are moved through the system. Through the Ethereum layer 2 protocol, transactions can happen at a much higher rate and shorter timeframe.
Nevertheless, the manipulators are actively exploring every washtrading possibility. As is bitsCrunch, which has a hawk’s eye for fraudsters. With Washtrade Detection from bitsCrunch, you can have spoof-free, safe, and authenticated transactions. Interested in knowing more about our tools? Want to keep yourself updated on the latest NFT trends? Follow us for more, only at bitsCrunch.
Frequently Asked Questions
NFTs are Non-Fungible Tokens, and in layman terms, representing digital art or collection, video clips of best moments in the sports and entertainment field, gaming skins and collectibles, stored in a distributed ledger powered by blockchain technology. These are unique items and are not interchangeable with another NFT.
Generally, things are valuable when they are scarce. There is only one Mona Lisa. There are only 59 Le Bron James dunking NBA Top Shots (one of which sold for $US387,000).
The primary difference between the two is that unlike cryptocurrency and digital currency, NFTs cannot be traded for each other as they are unique. representations of real-world assets. Cryptocurrencies and digital currencies can be traded for each other as there will be no loss to their value.
An NFT is a unique digital signature that you can attach to an asset. Whether that’s a song, or an image, or a piece of footage, a unique digital signature is like a fingerprint that contains information like who created the asset, when, and any conditions on its future sale (for example, whether or not the creator gets a percentage of when it is on-sold).
BCUT is the native digital utility token, it provides access to bitsCrunch services and the bitsCrunch network.
BCUT is the native digital utility token, it provides access to bitsCrunch services and the bitsCrunch network. It is designed to play a vital role in the functioning of the bitsCrunch ecosystem and is intended to be solely used as the primary utility token on the network.
We are a Cross-functional team with more than 25+ years of experience in Data Analytics & Artificial Intelligence and Blockchain. We already have all the NFT data since its inception. We blend our AI expertise with the Blockchain to bolster the NFT ecosystem.
We have built a model to identify the impersonation of artworks, thereby preventing the Provenance of the artist and the artwork. We are offering our services in a SaaS manner, wherein the customers can stake a certain amount of our native tokens to avail our services.
We haven't launched our BCUT Token yet, but we will send out a confirmation on the launch of the token on our official website and official Telegram channel.
DONT MISS OUT
bitsCrunch 2022 NFT WASH TRADE REPORT is ready for you.