The nonfungible token boom of 2021 was characterized by a surge in interest and investment in digital art and collectibles that showcased a clear break from the way in which art had been made, perceived, bought and sold up to that point.
Fueled by high-profile sales of NFTs, including the sale of a digital artwork by the artist Beeple for $69 million in March 2021, this boom was also marked by controversy and criticism, particularly around the environmental impact of the energy-intensive blockchain technology used to create and trade NFTs.
Since this boom, NFTs have evolved from being mere digital collectibles to being used in a variety of applications such as gaming, music and sports — representing ownership in almost anything.
However, the fast-evolving world of NFTs has brought its own set of challenges, one of these being scalability. The current blockchain infrastructure is incapable of handling the growing demand for NFTs, leading to network congestion and exorbitant transaction fees. Another roadblock is interoperability, as NFTs are confined to a single blockchain, limiting their accessibility to users on other networks.
A multichain solution
Enter multichain networks. These networks offer a viable solution to the challenges plaguing the NFT market by facilitating cross-chain transactions and uniting several communities in a neutral and decentralized environment. One company leading the charge in this area is Cudos.
Cudos is a decentralized cloud computing platform that enables cross-chain transactions and provides a scalable infrastructure for running decentralized applications (DApps), addressing the scalability issue. Cudos offers a solution to the challenges of the NFT space by enabling cross-chain transactions, creators and buyers can access a broader market, and the issue of interoperability is resolved.
While many are familiar with Cudos as a cutting-edge blockchain platform for cloud computing, few may realize that it is built on the Cosmos SDK, a powerful tool for blockchain development.
The Cosmos SDK is a modular framework that empowers developers to easily create their own blockchain applications. With prebuilt modules for staking, governance and token issuance, as well as the flexibility to customize and add new modules as required, the SDK is an ideal platform for building specialized blockchains tailored to meet the unique needs of various industries.
For Cudos, the Cosmos SDK has been an indispensable ingredient in constructing a blockchain platform that can handle the intricate computations essential for cloud computing. Thanks to the SDK’s modular design, Cudos has been able to create a bespoke blockchain that can securely and efficiently process vast amounts of data.
Beyond its technical capabilities, the Cosmos SDK boasts a vibrant community of developers and enthusiasts, which has provided Cudos with a network of like-minded individuals who share a passion for blockchain technology and its potential to revolutionize industries.
Envisioning a new horizon for NFTs
CUDOS Markets is a first-of-its-kind marketplace built by the team behind Cudos — experts in creating infrastructure marketplaces and backed by well-known VCs including Animoca Brands and Outlier Ventures. CUDOS Markets democratizes the process of mining Bitcoin (BTC), offering ordinary investors the chance to own a piece of the action by tokenizing hash rate. The sustainable marketplace creates a seamless bridge between NFT collectors and Bitcoin mining farms, providing the opportunity to access unique NFT hash rate collections that hold the key to untold utility — without any of the hardware costs.
The latest venture by Cudos aims to level the playing field and provide new avenues of opportunity for NFTs. Essentially, CUDOS Markets enables users to mine Bitcoin without the need for a physical mining setup, expensive electricity consumption or the risk of legal complications. By simply possessing hash rate NFTs in their Cudos wallet, individuals can benefit from the mining activities of CUDOS Markets’s issuer mining farm. This breakthrough approach has the potential to significantly expand the pool of individuals able to participate in Bitcoin mining via hash rate collectibles, ultimately contributing to a more diverse and robust network.
The future of NFTs’ success relies on the development of more robust and scalable multichain networks like Cudos. As the NFT market continues to expand, it is vital to have infrastructure that can support the increasing demand for NFTs and allow creators and buyers to access a wider market. Cudos and CUDOS Markets provide a sneak peek into the future of NFTs, where they can be used in several applications and accessed by users on multiple blockchains.
The multichain future of NFTs is a thrilling prospect. As we move closer to a more interconnected and decentralized world, multichain networks’ role in enabling cross-chain transactions and addressing the challenges facing the NFT space cannot be overstated. The success of NFTs in the long term will depend on the development of more robust and scalable multichain networks like Cudos. As the NFT space continues to evolve, it is imperative to have infrastructure that can support the growing demand for NFTs and enable creators and buyers to access a wider market with untold potential.