Single-chain NFT marketplaces, where users buy and sell NFTs on a single blockchain, may deal with problems such as network congestion, high transaction fees, and limited scalability.
This is because single-chain NFT marketplaces are limited by the number of transactions that the blockchain can process.
Cross-chain NFT marketplace solutions ease NFT platform scalability across NFT markets, enabling creators and collectors around the world to access its services.
Scalability is a key factor for NFT marketplaces.
When a large number of transactions come in a short time period (as during NFT drops or an auction), a single-chain NFT marketplace may experience delayed confirmation of transactions or even transaction failure.
Awareness and timely management of such limitations are necessary for the viability for NFT markets.
One of the most important points for the success of NFT markets is scalability, as the number of users and traffic will only increase over time.
Cross-chain integration is one way to alleviate congestion by distributing traffic across chains.
Performance Bottlenecks: Slow transaction confirmation times have frustrated users and decreased site reliability.
Growth Limitations: Platforms that do not run multiple chains face an upper bound to their scalability that cannot be overcome.
High gas fees (the transaction fees charged to log and thus validate an Ethereum blockchain transaction such as the minting or trading of an NFT) are often cited as the main barrier to entry to NFT marketplaces, and reducing costs can allow for a wider pool of creators, buyers and sellers.
Expensive Minting: Minting NFTs can be expensive on congested networks.
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