NFTs are among the major driving factors for DeFi ecosystems. The Ethereum network has seen a huge among of activity surrounding NFTs. Solana’s meteoric rise was also somewhat spurred on by the Degenerate Ape NFT launch.
So, what does the latest Cardano update mean for NFTs?
Does Cardano Support NFTs?
Yes, Cardano supports NFT transactions and play-to-earn NFT games, but this is not down to the Alonzo hard fork bringing in smart contracts.
Speaking in a livestream in September, Cardano’s Charles Hoskinson said the network has issued over 70,000 NFTs.
Cardano’s Mary hard fork allowed users to create native tokens on the Cardano blockchain, which then allowed users to mint NFT assets. This contrasts with Ethereum’s use of smart contracts for tokens and NFTs, which could be where some of the confusion comes in.
However, the release of smart contracts will help bolster NFT transactions. Transactions currently require escrow services between buyers and sellers, with exchanges such as CNFT.IO acting as this intermediary.
With smart contracts, this process can be further automated. Contracts can automatically execute the transaction once parties meet the conditions, moving these transactions on-chain and simplifying the process.
Smart contracts only launched on September 12. It may take some time before a consistent contract becomes utilised for NFT transactions.
Most Cardano NFT transactions take place on CNFT.IO – seen as Cardano’s version of OpenSea. Some of the best-selling CNFT projects include SpaceBudz, Cardano Trees, and Coco Loco.