3 Reasons why Harmony Protocol will revolutionize the NFT ecosystem
Disclaimer: This article is not intended as investment advice. Seek a duly licensed professional for investment advice.
The non-fungible token ecosystem is booming! Companies such as NBA Top Shot and Nifty Gateway have seen rapid growth in the past few months. Users are flocking to these platforms for the allure of owning exclusive digital collectibles, in this case “Moments” for NBA Top Shot and “Nifties” for Nifty Gateway.
The following are 3 reasons why Harmony Protocol has positioned itself to power the Non-fungible ecosystem of the future:
1. Close to 0 gas fees
If you have used Nifty Gateway then you have experienced the frustration with gas fees on the Ethereum network. It is really easy to buy a Nifty but gas fees are so high that it does not make economic sense to withdrawal the NFTs unless you have deep pockets. Due to the gas fees, most of the NFTs stay on the Nifty Gateway platform. There is a saying in the cryptocurrency world that goes “Not your keys, not your crypto”. It is the same in this situation. Harmony Protocol is working on a solution that will allow users to interact with MetaMask. Users will be able to wrap the ethereum NFTs and transfer them through a bridge to the Harmony Protocol. Once they are on Harmony they can be transferred around for close to zero fees.
2. Harmony Protocol is Ethereum virtual machine compatible
This article is not intended to bash Ethereum. Harmony will not replace Ethereum but enhance it. People have been waiting for ETH 2.0 and unfortunately it is only a pipe dream. Harmony has created a blockchain that can be used as an extension of Ethereum. All of the valuable NFTs are Ethereum tokens and they will always be Ethereum tokens, for example Crypto Punks. Harmony will not change the ERC-721 but “wrap” the tokens as HRC-721 tokens to allow them to be transferred with no fees. You do not have to reinvent the wheel. Ethereum has clearly showed that their technology will power ecosystems of the future. Harmony has not reinvented a new blockchain but created something similar to Ethereum 2.0.
This Non-Fungible token by YiYing Lu was originally minted on the Ethereum blockchain and is now living on the Harmony Protocol blockchain. It can be transferred back to the Ethereum mainnet and maintain its original form. Harmony is working on a wallet similar to MetaMask that will allow users to interact with both blockchains at the same time. This will allow users to have their Non-Fungible tokens in their wallet and transfer them around with practically 0 fees.
3. Strong partnerships with industry leaders
Harmony has partnerships with industry leaders who will use its blockchain to power their products. THE SANDBOX has partnered with Harmony to enable the growth of blockchain gaming.
This video also describes further developments and the latest news of some partnerships that Harmony has made within the NFT space.