- Is Polygon blockchain really worth it?
Just now·5 min read
Approaching the NFT world you will have to face many decisions. Some easy others, however, are really difficult and need to be deepened in order to understand all pros and cons.
One of these, for us, was: which blockchain do we use to mint our art?
If you don’t know what we are talking about you are in the right place! We also did not know, a few months ago, what people were talking about so, welcome friend!
When we started thinking about this world, we saw a lot of cryptocurrencies being moved from artist to artist without really understanding what was going on. All this activity is dangerous because it can lead you to make the wrong decision. The problem is that you realize you have taken the wrong turn too late without having a chance to go back and start over. The key is to calm down and have fun watching all money flows while you think!
But, back to the main topic: which blockchain should I use?
Before answer the question we want to summarize what a blockchain is in a few simple words:
A blockchain is a growing list of records, called blocks, that are linked together using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. The timestamp proves that the transaction data existed when the block was published in order to get into its hash. As blocks each contain information about the block previous to it, they form a chain, with each additional block reinforcing the ones before it. Therefore, blockchains are resistant to modification of their data because once recorded, the data in any given block cannot be altered retroactively without altering all subsequent blocks.
Bitcoin blockchain structure
Returning to the question: even if you might think we are wrong, our idea is that this question need to be answered before any other.
Even before choosing the marketplace? In our opinion, yes, because many marketplaces do not have more than one blockchain so you will have to use the native one without the possibility of questioning it.
We chose Opensea because it is the largest one but also because we had the possibility to choose the blockchain.
On Opensea you can use Ethereum blockchain or Polygon blockchain but why do you have to choose one or the other?
If you are reading this article you should know Ethereum (ETH). ETH is the king of all blockchains and the second largest coin by market capitalization. On its blockchain people move many (really many) cryptocurrencies and on its blockchain we find the famous “Bored Ape Yacht Club” and “CryptoPunks”.
It is a blockchain for “rich” people because every action you need to perform (to mint, list, change price, sell…) has a price that depends on the network. If the ETH network is really busy, you might as well spend a lot of dollars just to mint a new NFT. It may happen that you spend more money on transactions and fees than the NFT value.
Throughout 2021 the NFT world exploded and you can easily understand how busy the ETH network will be every single day.
In any case, we found a solution: prepare a lot — really a lot — of coffee and wait until late at night hoping to find few seconds to carry out the transaction at a lower cost.
Done? Oh great, now you can go to bed!
Seriously, this is really a riddle! You should choose ETH in order to have more visibility and appeal and to “fight” against NFT Gods like “Bored Ape” and also “CryptoPunks” but you are a small startup, like us, and you do not have the opportunity to invest a huge amount of money in fees. Also from a new buyer’s perspective it might be better to tackle a cheaper blockchain in order to save some money.
So, paying hight commissions can be a crossroads between a sale and a missed sale.
Polygon, on the other hand, it is a layer-2 blockchain, scalable, fast and flexible. Using Polygon, sellers can fully manage their NFTs without any fees including errors that occur when you start using a new software or product.
After months of use and more than 200 NFTs uploaded, we are still positive about our choice although we have found some limits, first of all: popularity and number of sellers and buyers.
Other disadvantages are, for example, bundles and auctions.
Using Polygon blockchain on Opensea it is not possible to sell bundles. Bundles consist of multiple items sold for one price. Not a big deal but you need to change your sales strategy if you have more than one item like we produced with Fibonacci’s puzzles. We had to sell every single item instead of selling all the complete puzzle. We are fully aware that this could change people’s interest in selling items, but it is a trade-off to consider if you want to showcase your art to the world without hundreds of dollars in commissions.
Another limit, even if it is not really a limit, concerns auctions. On ETH blockchain you can sell an item at a fixed price or start an auction where buyers can propose their price. On Polygon blockchain you have no auctions but you can set a price by letting people bid with a different price whenever they want. It looks like a perpetual auction.
In conclusion, the choice of the blockchain is a strategic choice because you have to choose between high investments to pay fees by having a larger pool of potential buyers or no commissions to pay but less popularity and, we don’t know, perhaps buyers’ interest.
We think that there is no better choice regardless. This is precisely one of the risks of investing.
However, we have a certainty, Polygon blockchain will grow very fast and for sure it will become one of the largest and most used blockchains! In this crypto world we would say: To The Moon!
- Date of publication:
- Sat, 01/15/2022 - 04:14
Click on the link - it will be copied to clipboard