The rise in NFT tokens in recent times was a result of increae in number of users wlling to buy.
That’s just a small corner of the digital asset market being fueled by today’s financial technology.
However, it’ important as it’s one of the more consumer-facing elements of the crypto world, especially as pop artists, athletes, and others create their own NFTs for open markets.
The average person might not be wanting to buy Bitcoin or Ethereum, but if one of their favorite artists is selling an NFT, that’s another story!
Non-Fungible Token Markets
First off, a very brief description of NFTs for those who aren’t familiar.
The NFT is essentially a digital asset are built on some blockchain, that is linked to a piece of intellectual property. Lets say, a work of art, or some celebrity’s autograph on a digital photo.
Beyond that, many of these NFTs feature elaborate digital designs.
Instead of wasting a whole lot of paper creating unique posters that they can autograph and sell.
Thats InteresTING ! and many of the NFT creators put together pieces of digital media and connect them to a particular blockchain NFT.
Many of these are made on the Ethereum blockchain, because of its utility with smart contract handling.
NFTs and Gas Fees
In the rush to create new NFTs, gas fees are one of the major obstacles for trading mindsets.
Technology insiders describing gas fees to lay audiences often talk about the computational energy as the “gas”.
This is the need to power NFT transactions, especially minting.
That’s the idea in a nutshell, but because those costs are fairly abstract, they are easily shifted around within a platform.
That has led to the emergence of NFT minting services with zero gas fees, which is attractive to investors who want to create an NFT but don’t want money to pay money to create one upfront.
Characterization of Gas Fees
All in all, many peer-to-peer gas fees can be fairly low, based on the nature of blockchain transactions. That is relatively frictionless and permissionless means of moving money and value.
In fact, there is a terms “gwei” to talk about how small Ethereum gas fees are supposed to be.
Some characterize the costs in “gwei” (a microscopic portion of an Ether unit) as “digital dust” to illustrate how negligible they are in a particular transaction.
What doesn’t jibe with this picture, though, is where individual creators come to a platform and find they are going to be charged the equivalent of $100 or more in gas fees just to mint an NFT.
Then there can be auxiliary gas fees for trading and other events or activities as well.
On venues like Reddit, where people talk candidly about cryptocurrency and digital assets, more than a few entrepreneurs and traders are looking at how to avoid excessive gas fees for these types of transactions.
Alternatives for Zero Gas Fee NFTs
Within today’s current landscape, users can find several options in order to create NFTs with no gas fees.
The biggest NFT marketplace of its kind, OpenSea, just made headlines with its volume of NFT transactions over time. OpenSea has created its own option for people who don’t want to pay gas fees when minting an NFT.
They call it “lazy minting” and point out that this alternative separates the underlying NFT from its metadata, where the proof of work is verified and gas fees are typically charged.
This means that in OpenSea’s “zero gas fee” concept, the costs might not be fully mitigated but just delayed.
Another platform called Immutable X is based out of Australia and makes NFT minting completely free of gas fees. Assets are immediately tradable; also, the customer keeps all of the private keys.
This eliminates a lot of troublesome scaling issues with single and bulk NFT minting.
There’s also another platform called Mintable that is pioneering the zero gas fee NFT.
Some users have reported problems using this platform, but it appears to still be operational as part of today’s emerging NFT marketplace.
Armed with this knowledge, entrepreneurs who would like to be involved in this exciting corner of the industry can go out and confidently put their oars into the water.
Look out for growing interest in NFTs beyond the current community of Defi fans and insiders. This is a technology with a lot of potentials to grow.