What are Omnichain NFT? A guide to this new trend

Omnichain NFT is the latest buzzword in the Web3 world. It all started when LayerZero Labs, a Canadian company, developed LayerZero, an interoperability protocol. In short, LayerZero forms the backbone of the NFT omnichain. Therefore, you must first understand what LayerZero is to better understand everything that NFT omnichain requires.

What is the LayerZero protocol?

Simply put, LayerZero is an omnichain interoperable protocol that allows decentralized applications (dApps) to create multiple blockchains in a “reliable and efficient manner.” This means that it serves as a transport layer where smart contracts can communicate with blockchains.

Over the last two years, the growing cryptoecosystem has brought many blockchain applications, such as NFT brands, games, and more. However, there is a serious lack of infrastructure to support cross-chain operability. As a result, “users, data and liquidity” have spread to applications built on different blocks.

This is where LayerZero comes on. It solves this problem through the omnichain interoperability protocol, which integrates dApps across multiple blockchains.

“LayerZero opens up the future of blockchains without borders,” said Ryan Zarick, CTO and co-founder of LayerZero Labs. “Users communicate with omnichain dApps that exist on multiple blockchains. These dApps communicate seamlessly with LayerZero without the user’s knowledge.”

Last month, LayerZero Labs received $ 135 million from Sequoia Capital, FTX Ventures, Andreessen Horowitz and others. This will allow the company to accelerate the development of cross-chain dApps managed by LayerZero.

“By opening up cross-chain composability, LayerZero allows developers to build decentralized applications that were not previously possible,” added Ali Yahya, general partner Andreessen Horowitz.

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Currently, the protocol supports all blockchains using the Ethereum virtual machine (EVM). These are Ethereum, Binance, Avalanche, Polygon, Arbitrum, Phantom and Optimism. In the future, the team will add support for non-EVM chains such as Terra, Cosmos and Hub, among others.

To understand Omnichain NFT

Since the launch of LayerZero, the wider NFT community has been very excited about the prospects of the NFT ecosystem. Basically, thanks to LayerZero, NFTs can now be truly omnichain and take advantage of a wider range of options.

For example, omnichain NFTs may have properties that are activated depending on their chain. Or it only has certain tools if it is in a certain string. Alternatively, you can avoid paying too high gas fees to purchase an Ethere-based NFT by simply selecting the same NFT on another network. The possibilities are endless!

For these reasons, NFT projects are now exploring omnichain interoperability. In fact, earlier this month, Gh0stly Gh0sts made history as the first omnicchain NFT collection in the world. The quietly declining collection of 7,710 NFT coins without coins soon gained market share. Today, the bottom of the project is 0.41 ETH and has so far generated $ 16.4 million in OpenSea trading volume.

Sure, this is just the beginning of the big things to come. As Gh0stly Gh0sts rightly said, “Omnichain NFTs are the future.” As such, NFT omnichain is not limited to LayerZero. Some earlier protocols, such as Optimistic Oracle UMA, offer similar capabilities. In the coming weeks and months we can certainly expect a lot of developments in the omnichain space. We can also expect many projects to jump on the bandwagon and reap the benefits that omnichain offers.

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