Home/ Brand Stories / NFT and DeFi-Based Projects Choose Ethereum Blockchain: Three Reasons Why

If you follow crypto at least with one eye half-open, there is a good chance that you know that the Ethereum (ETH) blockchain dominates DeFi and NFTs markets. More than 80% of DeFi protocols are connected to Ethereum, while 70% of all NFTs are either made on the Ethereum blockchain or use ETH as the primary valuation currency. 

Although Ethereum has apparent flaws, such as enormous gas fees and environmental concerns (massive energy consumption), it is still the number one choice for many aspiring crypto projects. In this editorial, we will go through the main reasons why Ethereum still reigns supreme, despite available alternatives like Cardano (ADA) and Solana (SOL), by looking at the new upcoming project, Big Eyes (BIG). 

Ethereum (ETH): Watch The Throne

Uniswap (UNI), the largest decentralised exchange (DEX), is built on the Ethereum (ETH) blockchain and, ever since its inception in 2018, it has been the primary engine for DeFi token trading. Unlike its counterparts - centralised exchanges like Coinbase or Binance - trading on DEXs occurs entirely on-chain. What this means is that each transaction is settled on Ethereum when a Uniswap trade is made. 

Such trading has significantly accelerated Ethereum use case adoption because there are no platform fees or intermediaries. Subsequently, many projects choose Ethereum to get listed on Uniswap and thus appeal to a crypto flock. 

Another reason is that with ETH, one can wrap it and create what is known as wrapped ETH or WETH. WETH represents a way to use ETH as an ERC-20 token, and since DeFi tokens are built on Ethereum's ERC-20 standard, it is easy to exchange one token for another. 

Lastly, blockchain transaction fees on Ethereum can be high, but there is a hidden benefit to it as well. Since fees are ultimately paid to miners, this means that the higher the fees are, the more incentivized the validators are to secure the Ethereum blockchain. With numerous hacks and phishing attacks happening in the crypto space, network security is critical for the long-term health and success of the blockchain. 

A similar logic applies to NFTs. Because of Ethereum's highly-secure network and data architecture, the Ethereum blockchain leads NFT projects running on it as ERC-721 coins. On top of that, it provides NFTs with vast exposure to a large and growing market. Lastly, NFT systems are compatible with Ethereum virtual machines, so Ethereum wallets like Metamask can support them. 

Big Eyes (BIG): The Project That Has It All

The Big Eyes (BIG) project understands the aforementioned nuances and, thus, has chosen the Ethereum blockchain to power its subsequent development. According to the Big Eyes (BIG) whitepaper, the main emphasis is on providing their community with vast options for DeFi engagement, like yield farming and liquidity pools and hypergrowth, through promoting cute cat-themed NFTs

Although there are some risks to building on Ethereum (ETH), like costs of transactions, these are mitigated by the fact that Big Eyes (BIG) plans to launch their token on Uniswap. The decentralised exchange is set to attract more users to the Big Eyes (BIG) project due to the many DeFi services one can perform on the chain. 

The BIG token depicts a cute little cat reminiscing about Japanese anime cartoons, where the association with the character plays the most pivotal role for the community to support and sustain the project's future. There will be 200,000,000,000 tokens, with 90% released to the public after the presale stage is over. Another 5% would be used to support charities protecting marine life, while the rest would be put into the project's marketing wallet. 

The BIG token is crucial for minting, selling, and trading NFTs and entering the broader Big Eyes DeFi ecosystem. If you are interested, click on the website below to find more information about it. 

The Upshot

At the end of the day, each project has its own path, and I am in no way attempting to argue that Ethereum (ETH) is the only option available. However, it enables a wide range of options for integrating DeFi and NFTs services; it is highly secured from malicious attacks and provides vast exposure to a large and growing market both in the NFTs and DeFi sector. 


Telegram: https://t.me/BIGEYESOFFICIAL

Disclaimer: This article is a paid publication and does not have journalistic/ editorial involvement of Hindustan Times. Hindustan Times does not endorse/ subscribe to the contents of the article/advertisement and/or views expressed herein.

The reader is further advised that Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.

Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the views, opinions, announcements, declarations, affirmations etc., stated/featured in same. The decision to read hereinafter is purely a matter of choice and shall be construed as an express undertaking/guarantee in favour of Hindustan Times of being absolved from any/ all potential legal action, or enforceable claims. The content may be for information and awareness purposes and does not constitute a financial advice.

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Updated: 05 Jul 2022, 07:58 PM IST
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