Zora, a prominent platform for creating non-fungible tokens (NFTs), has announced the launch of its Ethereum layer-2 scaling network called the Zora Network. This move is aimed at improving the user experience and lowering costs for artists and creators. The development of this network follows weeks of rigorous testing and careful development.
Zora Network was initially introduced in May through a mysterious website and it presents itself as a symbol of the pure internet, embodying concepts like freedom, value, resonance, connection, independence, and expansion. It caters to all aspects of creation.
Built on the tech stack of the Optimism layer-2 scaling network, the Zora Network is secured by the robust Ethereum blockchain and is supported by more than 35 platforms. Notable backers include on-chain music platform Sound, wallet provider Rainbow, and the Web3 app toolkit Thirdweb.
Zora has experienced increasing challenges on the Ethereum mainnet over the past six months. With an impressive user base of 880,000 collectors and millions of NFTs minted, Zora observed that high gas prices on the Ethereum network were hindering adoption and causing difficulties for collectors and creators.
To address this issue, Zora Network is subsidizing and abstracting away these costs. According to Jacob Horne, the CEO and co-founder of Zora, minting on the network is 25 times cheaper compared to Ethereum. This development signifies a significant shift in the market, with layer-2 solutions, previously mainly used in decentralized finance (DeFi), now being adapted for art and media.
Recently, Zora introduced a groundbreaking feature that allows creators to write their own NFT smart contracts.
In May 2022, Zora raised $50 million in a funding round led by Haun Ventures, achieving a valuation of $600 million. Zora positions itself as the Shopify or WordPress for NFTs and the emerging Web 3 economy, boasting around 130,000 users in June alone.
On the revenue front, Zora generates income through the sale of development tools that help companies tailor its free protocol to their specific requirements. Additionally, it has hosted several high-profile NFT drops, including a $4 million sale of the Doge meme NFT. Zora has big ambitions and envisions the creation of a decentralized autonomous organization (DAO) with token-based membership that could potentially raise funds through the sale of governance tokens in the future.
Compiled by Coinbold