In the world of digital assets and non-fungible tokens (NFTs), interoperability is key to success. Without it, the various NFT platforms would be isolated ecosystems, unable to interact with one another. This would be a major hindrance to the growth of the NFT market, as it would make it much harder for users to buy, sell, or trade NFTs. By definition, interoperability is the ability of two or more systems or components to exchange information and use the information that has been exchanged. In the context of NFTs, interoperability refers to the ability of different NFT platforms to communicate and work together. This is important because it allows for the easy transfer of NFTs between platforms, which is essential for both users and businesses.
There are a few different ways that developers of NFT platforms can achieve interoperability. In this article, we will explore these ways.
One way is through the use of open standards. Open standards are publicly available specifications that define how systems should work together. By using open standards, NFT platforms can ensure that their systems are compatible with each other. Open standards allow for easier integration with other systems and platforms. Open standards promote competition and allow for innovation and creativity. By using open standards, NFT platforms can avoid vendor lock-in and increase competition. NFT platforms that use open standards will be able to better compete in the market and provide users with the best experience.
One such proposal is the ERC-721 standard for NFTs on the Ethereum blockchain. This standard defines a set of rules for how NFTs can be minted, transferred, and destroyed. It also specifies how NFTs can be metadata so that each NFT can have unique information attached to it. Another proposal is the Interoperable NFT Standard (INFT), which is being developed by a consortium of companies and organizations. This standard aims to provide a way for different NFT platforms to interoperate with each other. It includes standards for how NFTs can be created, stored, and traded, as well as how they can be interoperable with other digital assets.
Types of NFT Standards
Different Ethereum-based token standards are ERC-20, ERC-721, ERC-223, ERC-827, ERC-777, ERC-1155, ERC-1137, ERC-998, ERC-875, ERC-865. Not all are suitable for NFTs. ERC-721 and ERC-1155 are most used for non-fungible tokens. ERC-20 is particularly for fungible tokens that act like cryptocurrencies.
- Binance Smart Chain (BSC)
Binance Smart Chain comes with a built-in Ethereum Virtual Machine that offers interoperability, meaning you can transfer assets or tokens between BSC and Ethereum.
BSC has two types of token standards: BEP-721 and BEP-1155. Similar to ERC-721 and ERC-1155, however, with lower transaction fees. Besides, the transactions are also faster than the Ethereum network. BEP-1155 supports batch transactions, atomic swaps, and issues unique tokens under one smart contract. However, it is found to be most suitable for blockchain games.
A blockchain designed especially for collectibles and games, Flow offers its unique token standards equivalent to ERC-721. Transactions on the Flow blockchain are faster, cheaper, and easier than on the Ethereum blockchain which often faces network congestion. Flow is also scalable.
TRC-721 is a token standard equivalent to ERC-721 on the Tron blockchain. Transaction fees on this network are low, sometimes even below one dollar. All TRC-721 tokens have unique IDs wherein the name and ticker can be customized based upon your (artist) preference.
Another way to achieve interoperability is through the use of APIs. APIs (Application Programming Interfaces) are sets of rules that allow two systems to communicate with each other. By using APIs, NFT platforms can allow their systems to talk to each other and exchange data. APIs and interoperability can help to ensure that data is stored in a consistent format. This is important because it helps to ensure that data can be easily exchanged between different NFT platforms. Second, APIs and interoperability can help to ensure that data is accessible to all parties. This helps to ensure that all parties have the same ability to access the data. Thirdly, APIs and interoperability can help to ensure that data is tamper-proof. This is important because it helps to ensure that the data cannot be changed without the permission of all parties. Fourth, APIs and interoperability can help to ensure that transactions are processed in a timely manner. This is important because it helps to ensure that transactions are not delayed or cancelled due to technical problems. Finally, APIs and interoperability can help to ensure that NFT platforms can scale. This is important because it helps to ensure that NFT platforms can handle an increasing number of users and transactions. The use of APIs and interoperability can help to create trustless systems for NFT platforms. However, it is important to note that these systems are not perfect. For example, if one NFT platform is down, then all platforms that rely on it will also be down. Despite these limitations, the use of APIs and interoperability can help to create trustless systems for NFT platforms. These systems can help to improve the efficiency and security of NFT platforms, and they can help to ensure that NFT platforms can scale.
Another way to achieve interoperability is through the use of sidechains. A sidechain is a separate blockchain that is connected to the main blockchain. Sidechains can be used to add new features or functionality to a blockchain. In the context of NFTs, a sidechain could be used to connect two different NFT platforms. Sidechains can be used to move data or tokens between different blockchain platforms, essentially allowing them to work together. One of the benefits of sidechains is that they can help to improve scalability. For example, if an NFT platform is built on a sidechain, it can offload some of the processing power required to handle transactions onto the sidechain. This can help to improve the overall speed and efficiency of the platform. Another benefit is that they can help to improve security. By using a sidechain, NFT platforms can isolate themselves from the risks associated with the main chain. This can protect the platform from hacks or other malicious activity.
Finally, NFT platforms can also achieve interoperability through the use of smart contracts. Smart contracts are self-executing contracts that are written in code. By using smart contracts, NFT platforms can automate the exchange of data and information between their systems. A smart contract is a computer protocol that facilitates, verifies, or enforces the negotiation or performance of a contract. Smart contracts allow the performance of credible transactions without third parties. These transactions are trackable and irreversible. The use of smart contracts has been limited so far to simple transactions, however, there is potential for smart contracts to be used for more complex transactions, such as those involving NFTs. NFTs are digital assets that are unique and cannot be replicated. They are often used to represent ownership of digital assets, such as digital art or collectibles. The use of smart contracts for NFTs has the potential to increase the interoperability of different NFT platforms. For example, a smart contract could be used to enforce the rules of an auction on one platform, and the results of the auction could be recorded on another platform. This would allow for the creation of a decentralized marketplace for NFTs. The use of smart contracts also has the potential to improve the security of NFT platforms. Smart contracts can be used to automate the verification of transactions, and to enforce the rules of the platform. This would reduce the reliance on platform operators, and make it more difficult for attackers to manipulate the platform. The potential benefits of smart contracts and interoperability for NFT platforms are significant. However, there are also some challenges that need to be addressed. For example, the use of smart contracts could increase the complexity of the platforms, and make them more difficult to use. Additionally, the use of smart contracts could increase the risk of fraud or errors. Despite the challenges, the potential benefits of smart contracts and interoperability for NFT platforms are too great to ignore. The use of these technologies has the potential to revolutionize the way that NFTs are traded and managed.
The NFT market is still in its early stages, and there are a limited number of NFT platforms. However, as the market grows, it is likely that we will see more NFT platforms emerge. The ability of these platforms to interact with one another will be crucial to the growth of the market. Storygame is following closely so contact us to talk more about implementing a solution for your business.