The startup founder said high gasoline prices have become a problem for the NFT (non-exchangeable token) markets, especially as they appear to be expanding.
Sean Papanikolas, founder of NFT Marketplace Cargo, told Cointelegraph in an interview that the NFT sector is at a turning point. But scalability is weighing on new entrants to the sector now that gas prices have risen. He said:
“Now in 2020, platforms are starting to face expansion challenges due to soaring gasoline prices. Some platforms have rolled the coin while gas prices rise, while others are seeing a significant drop in activity. ”
The Cargo founder warned that the rise in gasoline prices has prompted some platforms to start working on tier 2 solutions, and some are looking at other networks, leaving Ethereum altogether. To counter the increase in gas taxes, Papanicolas Cargo said it has launched a solution based on ERC-721 and ERC-2309 standards.
But if blockchain companies want to expand their NFT business, Papanikolas warned that it won’t be as easy as they think:
“I think blockchain companies need to prepare for the level of software development required to overcome the technical barriers and limitations inherent in developing smart contracts in Ethereum, and therefore how these blocks will work with traditional systems. The competition will continue. also increase. ”
Currently, users can use a small amount of ETH at current prices to secure gas that can be used later without risking a price increase. This is what other industry players have talked about before. In an earlier interview with Cointelegraph, Qtum co-founder and lead developer Jordan Earls said that this is causing the network to not respond properly to the gas price hikes we see today as some of the people with access to these tokens are using this cheap gas. … … Now, however, prioritize your transactions by not using ETH. “Other companies have also suggested that NFT companies explore other ways to avoid rising gasoline prices.