How cross-chain technology is revolutionizing the NFT market?

How is cross-chain technology transforming the NFT market?

Ideausher1January 25, 2023

0 6 5 minutes read

How cross-chain technology is revolutionizing the NFT market?

Many popular NFT marketplaces, such as OpenSea, Magic Eden, NBA Top Shot, Rarible, and others become popular due to their high-selling NFT collections.

As per the report, the NFT market size is projected to reach $3,886M by 2023 and is expected to reach $8,412M by 2027 at a CAGR of 22.91%.

However, with the implementation of cross-chain technology, the limitation of being restricted to trading NFTs within the same blockchain network can be overcome. Cross-chain technology allows for the seamless transfer and trading of NFTs across different blockchain networks, greatly expanding the potential market for NFTs. This increased liquidity can lead to more value being generated for NFT holders and maslak escort creators, making it an even more attractive market to invest in. Therefore, investing in creating a marketplace that incorporates cross-chain technology can provide a competitive advantage and increase the potential for success in the NFT market.

To eliminate such limitations, a new concept is emerging in the market known as “cross-chain technology.” These are the bridges that enable transactions to occur between various blockchain networks.

Cross-chain eliminates the restriction to trade NFTS only in a specific blockchain network. The technology enables the connectivity of multiple blockchain networks where users can trade their digital assets across multiple blockchain networks.

In detail, let’s understand how cross-chain technology revolutionizes the NFT market.

How is cross-chain technology improves the NFT market?

The cross-chain marketplace is improving the NFT trading experience in many ways:

1. Expanding collections

Since users have no limitations to specific blockchain networks, cross-chain technology can help NFT marketplaces expand their digital collections by enabling creators to join their platforms from multiple blockchain networks.

More creators in specific marketplaces will help the platform to have more NFTs collection compared to marketplaces that rely on a single blockchain network.

Plus, having huge collections will help the marketplace get better attention from global audiences interested in big NFT collections for investment purposes.

By allowing creators to come across multiple blockchain networks, a trading platform can generate better collections and attract worldwide NFT investors.

2. Improving user engagement

Cross-chain enables marketplaces to allow their users to trade NFTs on their platform by coming across multiple blockchain networks.

Cross-chain doesn’t have restrictions for selecting different blockchain networks so that they can trade their digital assets across different blockchain platforms.

Giving freedom for users to choose their preferred blockchain network help marketplaces to get more engagement on their platform.

With better engagement, a marketplace can generate better revenue and become profitable in the long run.

3. Benefits of multiple blockchains

Since each blockchain comes up with its own benefits, the cross-chain NFT marketplace can utilize the benefits of multiple blockchain networks to help them offer an enhanced platform experience to their users.

This technology supports asset trading and lending across multiple blockchain platforms and offers a better NFT trading experience where it utilizes the unique benefits of each blockchain network.

Companies are free to choose multiple decentralized networks for creating their cross-chain NFT marketplace and can utilize multiple blockchain benefits, such as one that offers low transaction costs and another that offers better transaction speed.

Having all availability to select multiple blockchain networks will help companies to select the best networks that can help them fulfill their business goals.

4. Diverse payment options

Cross-chain technology helps NFT marketplaces and their users to trade digital assets by making and receiving payments with multiple cryptocurrency options.

Since these marketplaces support the integration of multiple crypto wallets, users are free to make purchases based on their preferred crypto wallets.

Offering a wide range of cryptocurrencies option helps users to collect their favorite digital assets by paying creators with their preferred payment option.

Also, offering multiple crypto wallet integration can improve sales as users will be free to make payments based on their preferred crypto wallets.

5. Improve scalability

Since cross-chain technology allows the NFT marketplace to use multiple blockchain networks, they can easily scale their business across many decentralized networks.

Compared to creating marketplaces on separate blockchain network offerings, implementing cross-chain technology can help NFT marketplace scale their businesses and get more customers and sales.

Businesses don’t need to rely on a single blockchain network, and Cross-chain enables them to use multiple networks that will help them to target the audience of numerous blockchain networks.

6. Offer better transparency

Cross-chain technology enables end-to-end transparency across multiple interconnected blockchain networks.

Since these marketplaces support real-time autonomous collateral auditing, it helps marketplaces reduce risk regarding potential manipulation and fraud. Marketplaces without cross-chain elements cannot offer users such a level of transparency.

Moreover, with the ability to integrate multiple APIs, marketplaces can easily track all transactions of their users that come from multiple blockchain networks.

7. Gives economical storage options

Relying on a single blockchain network can limit NFT marketplaces from utilizing the full potential of blockchain technology.

On the other side, cross-chain technology enables these marketplaces to consume the blockchain benefits of multiple networks simultaneously.

The cross-chain enables these marketplaces to select economical storage options of multiple decentralized networks. This helps marketplaces adjust their budget for storing the digital assets of their users.

8. Improves liquidity

Due to a wide range of audiences, a cross-chain NFT marketplace offers them better liquidity where each buyer can purchase each digital asset.

Liquidity is the ease of digital assets, where each can be converted into cash without affecting its marketing price. Better liquidity is good for the marketplace as it can help their users easily sell their NFTs.

Better liquidity on the marketplace offers users the best platform experience where they can trade their NFTs easily, so they would not have to wait for buyers to cash in their digital assets.

Additionally, cross-chain technology can also make it easier for creators to mint and sell their NFTs on multiple platforms, without needing to worry about the technical details of interacting with different blockchain networks. This can make it easier for creators to enter the NFT market, leading to more innovation and growth in the space.

Furthermore, Cross-chain technology allows NFTs to be transferred from one blockchain to another, which is also beneficial for the NFT market. This can be useful for example when an NFT is minted on a blockchain that has high gas fees, the owner can transfer it to a blockchain that has lower gas fees, thus reducing the cost of holding the NFT.

Overall, cross-chain technology has the potential to greatly improve the NFT market by expanding the potential market for NFTs, making it easier for creators to get involved, and reducing the cost of holding NFTs. As technology advances and more platforms begin to adopt cross-chain functionality, we can expect to see the NFT market continue to grow and evolve.

Do you want to create your cross-chain NFT marketplace?

If you are wondering how to create your cross-chain marketplace then here is the solution.

You can outsource your project to a cross-chain NFT marketplace development company so you focus on other important aspects of your cross-chain NFT marketplace.

If you are looking for a team to help you create your cross-chain NFT marketplace, you can contact Idea Usher.

Our team offers complete blockchain development services, from extensive market research to launching your product in your targeted market.

You can schedule a free consultation call with our team to discuss your project and begin building your cross-chain NFT marketplace.

Here’s the list of our blockchain development services: