Even though Cardano does not have smart contracts functionality, Cardano developers have together come up with a way to mint bootleg non fungible tokens. And they have proven to be hugely successful so far, with token drops regularly selling out.
The ADA technology team,.revealed on Reddit that there are two NFT images they had minted on the chain. And also said they were planning to offer NFT minting as a service to pool delegators.
As there is no smart contract function or NFT token standard yet, users mint a token one of one native token.
Alessandro, the Co-founder of collectibles project Spacebudz explains it as.
“Tokens on Cardano are native and are on the same level as ADA. Instead of smart contracts, so-called ‘minting policies’ control the flows of a certain token group. NFTs are basically tokens on Cardano with a quantity of 1”.
Developers Await smart contracts amidst good sales
The NFT’s on Cardano have become popular with the users, despite technical barriers faced by developers.
Co-founder Allesandro said, Spacebudz sold out all 10000 NFT’s in 3 days of time and there’s already a booming secondary market where extremely unique Spacebudz have sold for as much as $40000.
CardanoKidz was operating on Cardano native NFT’s in August 2020 itself, way before Spacebudz. Zac from CardanoKidz marketing team said that several pre-sale rounds sold out “within hours of launch”. Even before the tokens were minted, one Satoshi-inspired kid sold for 32000 ADA.
The community-developed token and minting policy tracker makes it better for developers. Although they have managed to pull it off so far they expect smart contract functionality to go live and make things easier for them.
“We can’t wait for smart contracts to arrive for more functionality but we had just enough tools and experience to make NFT’s work on Cardano, it’s been an incredible journey so far.”
A slew of other projects, like the CryptoPunk, inspired CardanoBits and the CNFT minting network, round out the fledgling ecosystem. Though still primitive, Cardano’s NFT is cost-effective in comparison with Ethereum. Minting native tokens costs around 2-2.5 ADA.
Will NFTs be a part of the Cardano network? Is it happening? Charles Hoskinson hints at the potential possibilities.
Charles Hoskinson hinted towards non-fungible token (NFT) marketplaces may soon find backing on the Cardano blockchain and the project is negotiating with several leading marketplaces about shifting onto its network.
The founder has been busy with the upcoming Alonzo hard fork , an upgrade that will get smart contracts to the Cardano network, the team will focus on NFTs as well.
Although these platforms are generally built on Ethereum, Hoskinson has often referred to the network as Cardano’s competitor. But he is optimistic that in the future these projects will shift to Cardano. It is believed that Hoskinson has contacted the top ten NFT marketplaces for the negotiations.
“It’s easy to clone these protocols; it’s easy to partner with these; just in NFTs, we approached several of the top-10 marketplaces and already begun discussions porting them over to Cardano. Because – why not? It’s an easy conversation, and it’s just engineering resources.”
He went on to say that Cardano is working on increasing the capacity required for such marketplaces to run smoothly, and that the company has agreed to do the same for other protocols, such as decentralised exchanges.
He also spoke and discussed Project Catalyst which was launched in 2020, a governance program for Cardano, and an “experiment” that is a part of the final iteration ‘Voltaire that funds several crypto-related protocols..’ IOHK announced earlier that in “less than 7 months,” Project Catalyst has grown to “become the world’s largest decentralized autonomous organization (DAO).”
“What we can do is to show up and give them support and advice, and in some cases perhaps funding above and beyond what Catalyst provides to incubate and bootstrap them. But really, it’s more of a conversation for the crux of the business model. So where will NFTs be in 5 or 10 or 15 years, and what business model has the highest chance to succeed?”
In other news, Hoskinson intended to sell his own tweets, taking a cue from Twitter CEO Jack Dorsey’s NFT “tweet sale.” He confessed that he had lately sold a tweet as NFT and donated the proceeds to charity.