Is omnichain the future of NFTs?
Whether you’re an Ethereum maxi, Solana builder, Cardano dweller, or have “BTC is King” tattooed on your chest — everybody can agree that the crypto space shifts rapidly.
Already in 2024, we’ve flown through multiple metas including — airdrop Farming, Solana memecoins, blast and base shitcoins, back to some questionably named Solana coins, social-fi, runes etc..
These metas have one thing in common — they are not on the same chain. Everybody will always return to their favorites, but limiting yourself to one chain kills your potential plays. Does this mean omnichain is the future?
What is Omnichain?
Omnichain refers to an NFT’s ability to transfer across multiple blockchain platforms. Unlike the traditional single-chain approach, omnichain systems facilitate better interoperability and efficiency within the space. But what are the benefits of going omnichain?
Increased Liquidity and Market Reach
Enabling NFTs to operate across multiple blockchains allows projects to tap into the vast liquidity of all types of blockchain maxi’s. By being exposed to numerous blockchains, NFT projects will ultimately be able to attract a broader audience and increase the value of their NFTs due to the new demand.
Lower Transaction Costs
Ethereum is known for its high gas fees, which create a significant pain point and barrier for many users. Omnichain solutions can mitigate this issue by allowing transactions to be processed on more cost-effective networks like Solana or Polygon without losing their presence on Ethereum.
Improved User Experience
Omnichain interoperability pulls the best from different chains, enhancing the user experience. This includes eligibility for airdrops across multiple chains and participation in chain-specific collaborations. Users will be able to benefit from the strengths of various ecosystems.
Challenges and Considerations
While omnichain has many clear benefits for NFTs, it still presents a set of challenges.
Security
Security is always a major concern whenever it comes to anything in web3. Bridging assets between blockchains introduces new vectors that wouldn’t have otherwise been present — and with new vectors comes new potential exploits. Users will be having to interact with more contracts, moving assets between wallets. Ensuring the security and reliability of these bridges is vital in maintaining user trust.
Technical Complexity
Additionally to the security concerns of omnichain, the technical complexity of implementing and maintaining these systems can be significant. Projects must make sure they invest in robust infrastructure and continuous development to ensure both smooth operations of the bridge and address any vulnerabilities that arise.
DeGods: A Case Study
In 2022, DeGods were the kings of Solana, oftentimes the only green project in a sea of red. In 2023, they migrated through a one-way bridge to Ethereum and also launched a collection of 535 DeGods on Bitcoin, taking the plunge towards becoming leading projects across multiple blockchains.
DeLabs recently launched their two-way bridge for their collections, allowing holders to choose which chain their NFT will live on (Solana or Ethereum). Their two-way bridge has been well-received thus far, with a significant number of holders opting to migrate blockchains. The first 24 hours saw over 1,100 DeGods return home to Solana, causing a substantial increase (24%) in the floor price on both the Ethereum and Solana side.
They prove to be the perfect example of omnichain bridges’ technical complexity. DeLabs has built out de[id], a verification system that allows users to link their Sol/Eth/BTC wallets and Twitter and Discord accounts together. Shortly after the two-way bridge was opened, multiple users reported issues of not being able to verify their Solana assets through de[id]. The Dev’s worked to debug these issues and resolved them within the day.
Conclusion
Omnichain, while set to revolutionize the NFT space by providing many benefits to holders, isn’t without its challenges. Enhanced liquidity, benefits from multiple chains, and improving user experiences through multi-chain interoperability — all help sell the dream of omnichain for NFT projects.
While challenges like security and increased complexity remain, projects like DeGods perfectly outline the potential benefits and successful implementation of omnichain systems. But as more NFT projects adopt this approach, we continue to see more opportunities and connections forming across different blockchains.
Do you think the future of NFTs is omnichain? Let us know here.
ABOUT FLOOR PROTOCOL
Floor Protocol is an NFT marketplace, aimed at helping web3 enthusiasts discover, buy, and collect rare NFTs. Through its $FLC Index Token, Floor Protocol offers investors simplified entry into premier NFT collections. Additionally, with the introduction of μTokens, investors are able to fractionalize their high-value assets, putting more utility in the hands of the holders.
For more information about Floor Protocol or if you have any enquiries, please contact us at support@flooringlab.com
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