An internal memo obtained by Polygon mentioned that Instagram has been preparing for its entry into the NFT market for years. The social media platform plans to allow creators and users to mint and sell non-expendable tokens (NFTs) directly in the app to help artists create collectibles and other digital assets they can sell through their apps. Own stores or elsewhere online. This should open the door to using NFT for actual digital ownership: imagine being able to buy a limited-edition painting from your favorite artist. Without having to go through intermediaries like eBay or Etsy, who take a percentage of each sale; instead, you could buy directly from him using cryptocurrencies.
Instagram Enters the NFT Market
Instagram has long been a popular platform for sharing images and videos, but it’s also a place for creators to share their work. Now, Instagram plans to add NFTs to its platform. If you are unfamiliar with NFTs (like me), they are digital assets that can be bought and sold similarly to other cryptocurrencies like Bitcoin and Ethereum. Still, unlike them, there is no centralized governing body behind them. Instead, they exist on a blockchain network where users can buy or sell their tokens through an exchange, which is what Instagram plans to do with its own tokenized items.
The social media platform plans to let creators and users directly mint and sell NFTs.
The social media company has announced that it will soon offer users a way to create and sell non-fungible tokens (NFTs), digital objects with unique characteristics such as ownership, scarcity, or authenticity. You can create unique collectibles in the app, just like CryptoKitties does with cats.
The plan could help change the control that Ethereum has over NFTs.
Ethereum is the most popular platform for NFTs, but it has a reputation for being slow and expensive. Polygon, on the other hand, is faster and cheaper than Ethereum. With better performance from Polygon’s backend technology and more users on board, Facebook’s new blockchain will be able to handle many more transactions at once, which means an explosion in the number of people using NFTs may be within reach. Around the corner.
Facebook might embrace Polygon’s blockchain
If you are unfamiliar with Polygon, it is a blockchain company that has developed a platform for acquiring and selling NFTs. According to an internal letter, Facebook may embrace Polygon’s blockchain and assist artists in cataloging collectible items.
This is not Facebook’s first time working on an NFT project. The company announced its cryptocurrency, called Libra, in December 2018 and published a white book outlining its workings. Later, The news revealed that Libra would use ERC-721 tokens as its primary currency, the same standard as many other decentralized applications (dApps), such as Decentraland, Gods Unchained, and others.
This should open the door to NFT use for real digital property.
If you are unfamiliar with the NFT, they are digital collectibles that have been around since 2018. They are created on the Ethereum platform, a blockchain platform used to create NFT.
However, in recent times, Ethereum’s market cap has decreased due partly to its battles with scalability and usability. The launch of Instagram’s new market might help Ethereum regain some of its lost market shares, but only if users want to use it for their reasons and not just because it is accessible through Instagram.
Instagram will try to attract users and creators with its new NFT market
The conclusion is that the new Instagram NFT market may help to change Ethereum’s grip over NFT. The social media application wants more users, creators, and developers by enabling them to create and sell their digital collectibles. Additionally, users may earn money from other users who buy their collectibles or advertisers who want to use them in advertising campaigns.
If you’re worried about what this means for Ethereum’s dominance as an NFT platform, be assured that Instagram isn’t currently competing with ETH or any other cryptocurrency! Up to this point, they have announced a program where community members may create and sell their unique digital activities using their application programming interface (API).
Conclusion
We’ll be watching to see how Instagram moves through with its plans. This might be a huge step forward for NFT and Ethereum, but it also comes with challenges. How, for instance, does Instagram ensure that its creators don’t produce easily collectible works? One of the reasons we think Facebook is becoming involved in this process so quickly is that they could have some suggestions for handling these issues before they become major ones.
