Home » What Does Apple’s Controversial NFT Policy Mean for Ethereum and Solana?

What Does Apple’s Controversial NFT Policy Mean for Ethereum and Solana?

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the good news is apple (AAPL 7.55%) We currently support Non-fungible token (NFTs) on the App Store. Given Apple’s enormous influence in the tech world, this seems to hint at future mass-market adoption of NFTs. The bad news is that Apple’s new NFT rules are potentially so restrictive and onerous that they have already caused a backlash in the cryptocurrency community.

ever since ethereum (ethereum 8.14%) When Solana (Sol 9.74%) are the two top crypto players in the NFT world, so it is clear that Apple’s new NFT policy will have a significant impact on the advancement of these two cryptos. Let’s take a closer look at what that means for Ethereum and Solana.

1. 30% tax

Apple’s decision to cut all in-app NFT transactions by 30% is one issue that has received the most attention. Yes, you can now buy and sell NFTs within the app, but Apple imposes a standard 30% commission on all transactions. This “tax” has always been a subject of great controversy in the tech world. There have been lawsuits over this, and even Elon Musk has been complicit in the matter. Some developers and creators think this 30% tax could ruin his NFT app business.

Image Source: Getty Images.

Solana has already moved forward and says it doesn’t support the 30% tax. To see how this works in practice, let’s take a look at Magic Eden, the top of the Solana NFT marketplace. You can now visit the App Store and download the Magic Eden App. Open Magic Eden on your iPhone to browse all popular NFT collections and view all top NFT projects. However, currently nothing can be purchased within the Magic Eden app. If you find an NFT you want to buy, you should visit his website at Magic Eden. This website charges a much more reasonable 2% transaction fee.

2. Pay with fiat currency instead of cryptocurrency

Another highly controversial issue is Apple’s decision not to allow cryptocurrencies as a payment method for NFTs. In many ways, this goes against the whole NFT concept. For NFT collectors, the traditional payment method for NFTs is crypto. The biggest he goes to OpenSea, the Ethereum NFT marketplace, shows NFT prices in ETH instead of dollars. When I go to Magic Eden, NFT prices are displayed in SOL instead of dollars.

Nevertheless, Apple’s decision to ban cryptocurrency payments may make NFTs easier to understand for casual users. It’s not natural for most people to say, “I got a bargain on Bored Ape NFT. I only paid 75 ETH.” As some have pointed out, Apple is just trying to simplify his NFT for the average person. We pay for digital music in dollars, so why shouldn’t we pay for digital NFTs in dollars?

3. Prohibit certain types of NFTs

Particularly restrictive will be the types of NFTs that people can buy, sell and trade. For now, it seems Apple has effectively banned utility NFTs. This is an NFT that contains additional features, benefits, or perks. Quite simply, these are not just beautiful pictures, they are NFTs with other bells and whistles that make them worthwhile. Apple has explicitly included language in its NFT policy that NFTs are not permitted to unlock other “features or functions.”

The biggest impact here is likely to be in play-to-one (P2E) games, which include the option to earn or acquire in-game assets while playing the game. These in-game assets are often in the form of NFTs. This Apple policy seems to have the greatest impact on the Ethereum NFT ecosystem, as Ethereum is generally considered to be the premier blockchain for P2E gaming.

The future of NFTs

Now it looks like Apple is poised to become the leader in the mobile NFT space. If you own an NFT, Apple wants it on your iPhone. If you buy NFTs on the primary market or trade NFTs on the secondary market, Apple wants you to do it on your iPhone. And of course Apple cuts all transactions nicely. genius!

Solana believes there is a grand workaround for all this. New “Mobile Crypto” Strategy Including First Ever Crypto PhoneThe new Saga phone will be released in the first quarter of 2023. The phone was never designed to be Apple’s challenger or to shake up the Apple ecosystem, but the developer left his Apple and moved to Solana, and the user could see his future It may convince you to create an NFT. Trading via Solana. As such, Solana is more optimistic than Ethereum when it comes to the future of NFTs.

in perspective, Apple’s official entry into the NFT world It opens up new opportunities for both Ethereum and Solana. Apple tries to make NFTs as simple and easy to use as possible. This will increase the size of his overall NFT pie of Ethereum and Solana. However, it’s up to these two ciphers to figure out how to protect that slice of the pie should Apple become the dominant player.

Dominic Basto I have a position in Ethereum. The Motley Fool has positions in and recommends Apple, Ethereum, and Solana. The Motley Fool recommends the following options: Apple’s March 2023 $120 Long Call and Apple’s March 2023 $130 Short Call. The Motley Fool has Disclosure policy.

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