The NFT marketplace Nifty Gateway will cut ETH gas fees down by 70% thanks to its new hybrid custodial model that we will talk more about in today’s Ethereum latest news.
Nifty Gateway will launch a semi-custodial ETH NFT trading system that will cut gas fees by 70%. The approach moved a few aspects of the wallet-to-wallet trade off-chain that will minimize ETH blockchain calls. Nifty Gateway will cut ETH gas fees by 70% as it made a huge shift by pivoting from its original focus on curated art drops to become an aggregator of ETH NFT marketplaces. The co-founders Duncan and Griffin Cock Foster said that this is the only step towards a bigger plan as the company is revealing a new method to cut the fees by 70% on NFT transactions.
We’ve officially surpassed $70MM in sales for @muratpak ‘s Merge collection 🥳.
This is the highest grossing collection on NG and we are proud to have over 20k unique accounts participate in the drop so far! 2 more days to go!
Happy merging! 🖤🤍
— Nifty Gateway (@niftygateway) December 3, 2021
Gas is the cost of transacting on the Ethereum blockchain where most of the NFT trading activity takes place and as the NFT market exploded in 2021, the fees surged to new highs. The gas fees made the NFT sales much more expensive for everyone. The debate over the ETH Gas fees reached a fever peak and started many Twitter spats as even long-term supporters consider the viability of the current leading NFT ecosystem. Duncan said:
“Gas fees have become a really challenging issue for all Ethereum-based projects at this time. If you’re spending $200 on an NFT and the gas fee to purchase that NFT is $100, a lot of times you’ll just choose to not make that purchase.”
Nifty Gateway is proposing a new kind of solution as it will leverage the current system to facilitate wallet-to-wallet trades that will require less gas than a comparable peer-to-peer trade somewhere else. Nifty’s system takes some of the on-chain steps that are needed on a wallet-to-wallet transaction on rival OpenSea marketplace as it handles them outside of the ETH blockchain to minimize the gas fees. The founders suggest that the total gas savings with the model will be as high as 70% compared to OpenSea but they think that this model will be beneficial for projects that trade in the hundreds of dollars per NFT:
“We’re really hopeful and optimistic that this will be a boon for the entire NFT ecosystem and help a lot of those projects that are impacted by high gas fees—to make everything more accessible for everyone.”
Yes I have abandoned Ethereum despite supporting it in the past.
Yes Ethereum has abandoned its users despite supporting them in the past.
The idea of sitting around jerking off watching the burn and concocting purity tests, while zero newcomers can afford the chain, is gross.
— Zhu Su 🔺 (@zhusu) November 21, 2021
The NFT marketplace invested in the custodial infrastructure for years because its business model was previously winded but includes curated drops which can be harnessed to facilitate cheaper wallet-to-wallet trades for all sorts of ETH NFTs out there.
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