- ETH is the king of NFTs but Ripple is trying to compete by making an investment in the NFT marketplace Mintable and launching a $250 million creators fund focusing on NFTs.
- Ripple is upgrading its functioning by entering the NFT world and integrating Ripple Ledger (XRPL).
Currently, Ethereum (ETH) is the king of non-fungible tokens (NFTs) as most of them are being created on ETH network. There are other networks that people create NFTs on, such as Cardano and Solana, however, Ripple is getting interested too, even though it’s coming a little late to the party.
Ripple Wants To Challenge ETH’s hegemony
NFTs were making records throughout the whole year, exceeding $10 billion in sales alone in 2021. At first, NFTs started as something new and interesting to be a part of because of big profits and high engagement from people, and now the launch several companies creating their own metaverse is pushing the adoption of NFTs.
Ethereum is still the king, where more than 95% of NFTs are created and sold on ETH network. However, Ripple is trying to compete by making an investment in the NFT marketplace Mintable and launching a $250 million creators fund focusing on NFTs. Mintable marketplace should allow the integration of Ripple Ledger (XRPL).
Given Ripple’s recent involvement in the NFT space, David Schwartz, Ripple’s chief technology officer (CTO), said several interesting points about NFTs, blockchain and crypto:
“We aren’t going to solve climate change in the blockchain space, but the least we can do is not make it a lot worse. It’s not a technical problem — we know how to not consume that much energy, it’s just a matter of convincing people to adopt the technologies that are more climate-friendly.”
„Every company wanting to get into the space needed a tremendous amount of specific expertise, which isn’t a good way to grow. So, building that tooling is what we’ve been focused on. Also, sometimes money is the obstacle.”
“In the XRP Ledger, no one gets transaction fees, so no one wants high fees. The fee literally covers the cost of processing the transaction. The fact is that the XRP Ledger works just as well without artificial scarcity that is common on networks like Ethereum.”
“The main benefits of using XRP Ledger instead of Ethereum is the scalability, or the number of transactions per second, but you can’t do things with loans, or TradeFi, or mortgages and staking.”
“The best use cases for XRP Ledger are mainly collectibles. On the XRP Ledger, the cost is a lot lower, so if you are building an NFT on Ethereum, it would have to be worth at least $500, and even then the fees would be close to $100. The fees are much less on the XRP Ledger and that allows for a broader range of use cases.”
What’s the new product Wrapped XRP? “Wrapped XRP is an asset that is designed to track the price of XRP. For every Wrapped XRP, there is an XRP somewhere tied into an ecosystem that keeps that XRP locked until the Wrapped XRP is free. The idea here is they should track close in price. Wrapped XRP will behave similarly to XRP. For instance, if all you are using XRP for is moving value, and you have something whose value is the same, then these should serve as substitutes in the market.”
“Another thing we are working on is federated side chains that allow assets to move freely between blockchains.”
Innovation is necessary in crypto-blockchain world, and Ripple continues to show it. If Ripple enters the NFT world in a right way, it could seriously boost its market cap and name as a crypto organization. Ethereum network may be viewed as a Monopoly in the NFT market, but it’s necessary for many other companies to enter this space, and decrease ETH’s dominance. Ripple may be one of those companies.
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author: Rene Remsik
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.