The Clean-NFTs Developer Community Google Sheet has been making the rounds on Twitter and various Discord servers.
Okay, so… what is it?
The Clean-NFTs sheet is a continuously updated catalogue of NFT platforms that use Proof of Stake (and related technologies) instead of Proof of Work blockchains.
Proof of what now?
👉 Proof of Work is the energy-hungry method that older networks like Bitcoin and Ethereum (for now) use for validating transactions.
👉 Proof of Stake is a much leaner method that uses an entirely different approach for validation. It’s not perfect (nothing is), but it’s vastly more energy efficient.
If you want to dive deeper into PoW vs PoS check out this guide.
A huge amount of current NFT activity is happening on PoW blockchains, mostly Ethereum.
All the big NFT marketplaces—Nifty Gateway, SuperRare, KnownOrigin, Rarible, Async Art, MakersPlace, etc—use Ethereum as their bedrock blockchain.
Several of these platforms do a lot of work “off-chain,” using traditional databases or more energy efficient blockchains whenever possible. They rely on Ethereum only for crucial transactions and accounting.
But because Ethereum is a power-hungry, PoW blockchain, people are actively looking for alternatives.
With so many greener options available, why isn’t everyone using them?
All right, so back to the Clean-NFTs spreadsheet.
There are a lot of “green” projects in development and many have already launched.
That’s rad, right?!
So why isn’t everybody migrating to these platforms?
Aren’t these the solutions we’ve been looking for? What the hell is the holdup, man?!
Here’s another way to ask these questions:
Why is everyone still on Ethereum?
1. Ethereum is where the action is.
Despite what your Twitter feed might suggest, cryptoart NFTs account for a tiny fraction of Ethereum’s total activity—roughly 2% for the period from Feb 1, 2021 to Mar 11, 2021.
Ethereum is used heavily by loads of industries and people for countless different reasons. Much of the activity falls under decentralized finance (“defi”) space, which is radically altering the way people relate to money and banking.
TL;DR: People are invested in Ethereum. It’s where they live and do work.
They already have money and wallets on the Ethereum network.
It’s easy to swap tokens within Ethereum.
It’s familiar and trusted.
Liquidity matters
☝️ Because of all the above, Ethereum also has high liquidity. Simply put, liquidity is what makes it easy to do business. Without liquidity, you might not be able to make trades because there may not be enough people or resources available.
No liquidity = no dice.
Go deeper on this topic here.
2. Developers are comfortable with Ethereum.
This one is often overlooked, but Ethereum has a mature set of tools that let developers do what they do best: build stuff.
Some new networks prioritize developer tools, but there’s still a learning curve. Developing on Ethereum means hitting the ground running.
3. The chain is only a (small) part of the solution.
Building a successful marketplace like Nifty Gateway or SuperRare is not easy. Aside from the blockchain hurdles, you have to absolutely nail:
UX/UI — Getting this right for any web application is far harder than it appears. Most startups (in the non-crypto world) fail because they can’t get this right. It’s doubly important in crypto, where new technologies and new user flows are at play.
Scalability and stability — NBA Top Shots recently suffered some bad press because they couldn’t handle the success of their own platform. Building a rock-solid marketplace requires scaling with demand.
Security — As with any application involving money, poor security can bring down even the mightiest of players. In the wild west of crypto, it’s easy to screw this up.
Trust through transparency — Perhaps the most undervalued virtue, building trust by being honest and open with your users will be the key differentiator for new NFT marketplaces.
4. Communities take time to build.
You can build the most bad-ass marketplace the universe has ever seen, but without an active community around it, it simply doesn’t matter.
Unfortunately, it’s hard to “fast forward” community development. It takes time, and there aren’t any shortcuts.
Brand new communities take an inordinate amount of energy and attention to nurture. Many “scrappy” platforms simply don’t have the resources to build and sustain the vibrant communities needed for lasting success.
5. Longevity of new chains and platforms is uncertain.
For artists and serious collectors (read: not investors looking for a quick buck), the longevity of a platform is important.
👀 For artists: What if you mint your most prized artwork on a platform that goes belly up a year later?
👀 For collectors: What if your entire collection dies on the vine because the platform stagnates or the underlying blockchain loses steam?
Let’s be clear: This is not an argument for us to stay on Ethereum forever.
I’m just trying to help you understand why migration takes a while—and why simply minting NFTs on a PoS platform isn’t enough.
Interestingly, the long migration time might just be what saves Ethereum.
Ethereum is currently shifting from PoW to PoS, a process which could be complete later this year (optimistically). If they pull that off, Ethereum might retain people who would otherwise jump ship to PoS platforms.
But they’ll have to be fast. The race is on.