The metaverse is Unbanked Newsletter To level up weekly on NFTs, virtual worlds, and more!
Dear unbanked people,
New L1s and new L2s continue to proliferate.
This means that moving fungible tokens between chains will become increasingly simpler through advancements in the Ethereum Virtual Machine (EVM) compatibility paradigm and UX.
But for non-fungible tokens, what are the options for NFTs to move from one chain to another?
In today’s post, we’ll answer that question by looking at the basics of the cross-chain NFT approach!
-WMP
🙏 Sponsors: Kraken — Kraken NFT was created for secure NFT transactions. ✨
There is no “right way,” per se, to move NFTs from one chain to another. We’ve seen a variety of approaches used for this so far, but they all have their own pros and cons.
For me, the first approach that comes to mind here is: Equivalent bridgingIt’s like moving an NFT from Ethereum to another chain. virtually equal From the protocol level to Ethereum, e.g. optimism Layer 2 (L2) scaling solution.
In fact, since the Bedrock upgrade earlier this year, Optimism boasts near-perfect Ethereum equivalency, so bridging an NFT from Ethereum to Optimism is kind of like bridging an NFT. From Ethereum to Ethereum.
Quix Marketplace (which became community-run earlier this year) offered: NFT Bridge Previously it was just a theoretical example, but the last time I tried it I couldn’t get it to work. You get the idea though!
🏹 Settle, hunt, claim, repeat.
Become an unbanked citizen today!
Of course, we haven’t seen much equivalent bridging in the NFT ecosystem yet. However, what has been much more common is to migrate entire collections using a more crude but quite practical method. Bun and Mint method.
Burn and mint refers to a process where collection holders can burn their NFTs on one chain and then receive an official collection approval reminder on a new chain. This is commonly cast as a “bridging” experience. For example, y00ts used this method not once, but twice during migration. From Solana to Polygon after that From Polygon to Ethereum.
Another approach that has recently become increasingly popular is lock and mint This is a popular method. Omnichain NFT You may have seen this before on the interoperability protocol LayerZero: Reel Fuzzy BridgeSupports transfer to: Arbitrum, BNB Chain and Polygon.
How this architecture works is that LayerZero provides a smart contract system that can convert regular NFTs into NFTs. on fitYou can then deploy that ONFT on the LayerZero support chain.
Then, to move cross-chain, ONFT is pinned to the source chain and created in the destination chain, and to move back, ONFT is pinned to the new source chain and original NFTs are unlocked at: original Source chain.
But LayerZero is just one Interoperability Protocol. In particular, projects that are simultaneously building support for LayerZero and additional messaging protocols include: hologram.
Zooming in, Holograph has created new primitives: holographic assetsThat instance is: hNFTs This allows the creation of NFTs that “can be moved across blockchains with seamless provenance, maintaining the same contract address and token ID across all EVM environments.”
For anyone who remembers my recent memories. RWA x NFT PostHolograph is working towards hNFTs. A standard for tokenizing real-world assets and “separate the asset layer from the blockchain layer.”
However, another protocol that shows great promise when it comes to additional messaging protocols is Chainlink’s new protocol. Cross-chain interoperability protocol (CCIP). of course, CCIP system We aim to do much more than that. only Although it supports cross-chain NFTs, it can excel in a variety of use cases, including: Cross-chain games, cross-chain NFTfi and universal NFTs. Affine, a DeFi project, specifically leverages this system to Affine Pass NFTfor example.
Therefore, some efforts, such as CCIP, want to provide a way to: everything To achieve cross-chain compatibility, some projects are building custom cross-chain solutions to suit their unique needs.
While working on custom development for this purpose, the on-chain RPG Pirate Nation comes to mind. mirroring system this is Trade in L1/Play in L2 How: The original Founder’s Pirates NFTs will remain on Ethereum, while Arbitrum Nova’s mirrors will facilitate gas-free gameplay.
This concept provides complete circularity by leaving an NFT on one chain and eliminating the need to move the NFT cross-chain to “use” it on another chain. This type of utility is made possible through services such as: UMA’s Optimistic OracleThis allows NFTs to be considered on one chain while enforcing actions on another chain.
Close and zoom out again, and it’s clear that the lines between blockchains are becoming increasingly blurred as cross-chain efforts across all sectors related to NFTs begin to gain ground. In the short term, there will be various challenges and obstacles to face in this field, but there will also be new possibilities, new innovations and new experiences. Accordingly, keep your eyes peeled here!
An unbanked citizen ⚑ turned $264 into $6,077 last year. 22x ROI in a bear market 🚀!
Kraken NFT One of the most secure, easy to use and dynamic marketplaces. Active and new collectors alike will benefit from no gas fees, multi-chain access, payment flexibility using fiat or over 200 cryptocurrencies, and built-in rarity ranking. Learn more Kraken.com/nft
👉 Visit Kraken.com to learn more and open an account today.
It is not financial or tax advice. This newsletter is strictly educational and does not constitute investment advice, a recommendation to buy or sell any asset, or a recommendation to make any financial decisions. This newsletter does not constitute tax advice. Consult your accountant. Do your own research.
expose. Occasionally I may add links to products I use in this newsletter. If you purchase through one of these links I may receive a commission. Bankless authors also hold cryptocurrency assets. see us Investment disclosure here.
