Horizon Protocol was built on top of the Binance Smart Chain (BSC) as a way of benefiting from the blockchain’s scalability, cross-chain functionality and its ability to ease network congestion. As a result, the protocol would work effortlessly in deploying speedy and less costly transactions across synthetic cryptocurrency assets. Horizon Protocol supports the trading of NFT-based synthetic assets.
The platform was forked from Synthentix – an ethereum-based synthetic trading platform. However, to avoid scalability issues affecting the Ethereum blockchain, Horizon Protocol was deployed through Binance Smart Chain.
NFTs Need a Secure Blockchain
Blockchain has shown to be the perfect system to guarantee security and protected value transfers of the investments mentioned above. Essential because once created, there are no modifications to blockchain technology. Provided that NFTs, in several cases, can be observed as valuable assets, either due to their inherent value or rarity, it is ideal for saving NFTs on a highly secure blockchain.
Horizon Protocol is a perfect platform for stashing NFTs, backed by powerful Oracles and a token that preserves the integrity of the data on the blockchain. With this said, your NFT ownership’s authenticity, once reported on the Horizon Protocol, cannot be questioned.
No other marketplace can beat this: the platform can fractionalize NFTs by either having someone lock the original NFT or create a synthetic version of the NFT fractionalized and backed by their debt pool. HP can also add a new layer of DeFI functions to the NFTs, like staking, lending, shorting, etc.
How NFTs Can Thrive on Horizon Protocol
Horizon Protocol ecosystem enables DeFi and has its token, meaning that anybody can begin trading their NFTs and games where NFTs are already built-in.
There is another way to utilize NFTs on Horizon Protocol’s interoperable platform. Let us use an example here. If you created a game similar to CryptoKitties where specific tokens were valued at thousands, you would want to keep them in an easily accessible location with your other valuables on the chain.
If another person were to build a collectible storage chain, users could potentially move their CryptoKitties-style tokens from the game across to the store chain and back again when they chose to sell or trade the token.
Several things trade on this platform that influential organizations such as Dragonchain, Celsius, and Sikoba form partnerships.
The Horizon Protocol token (HZN) pushes the economic incentives for users in the Horizon Protocol. HZN works as collateral to synthesize exchangeable synthetic assets (zAssets), encourages the awarding system, and gradually expedites a Decentralized Autonomous Organization that will watch over the entire protocol’s upcoming development.
By locking the original or creating a fractionalized NFT, Horizon Protocol can provide liquidity and a better price gauge for NFTs instead of being sold/bought rarely and in whole. Paintings sold once every few years at a subjective price could be fractionalized, and parts of the painting could be traded like any other asset. This arrangement increases liquidity and a more concurrent accurate price for the owner/s.
The NFT market is exceptionally concentrated on the Ethereum blockchain. Nevertheless, the latest DeFi solutions, including Horizon Protocol, are entering the ecosystem and are endeavoring to tap into the business of digital art, game assets, and digital collectibles.
In general, there is an enormous increase in buying activity and the appropriation of NFTs in new and forthcoming blockchain applications.
You can learn more about Horizon Protocol on Twitter and Telegram here.