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NFTS ARE COMING TO INSTAGRAM

Meta's Instagram will dive into the lucrative world of NFTs with a twist

In May 2022, Meta Platforms (META 1.03%) said NFT functionality would arrive on its social media sites Facebook and Instagram, allowing users to post or show their digital collectibles to followers. But according to a recent announcement, the company has added additional features that will essentially turn Instagram into an NFT marketplace.


Details suggest that creators will be able to list NFTs available for purchase on their profiles, similar to other major NFT marketplaces such as OpenSea or SuperRare. In addition, a tipping option will be created that will allow users to send money to their favorite content creators. This is all possible by connecting a digital wallet for user profiles to receive and send payments via cryptocurrency.


The decision to enable full NFT functionality, rather than just showcasing digital collectibles as originally planned, seems to be a move in the right direction for Meta.


Meta has announced that Polygon will be the primary blockchain to support NFT transactions. Fortunately, it is possible to purchase Polygon's native cryptocurrency, MATIC. As with stocks, the more a cryptocurrency is in demand, the more its price increases. With Polygon becoming the main blockchain for NFT transactions on Instagram, there could be a surge in demand for MATIC.


Meta chose Polygon for a number of reasons. First, Polygon is extremely fast in processing transactions. Unlike Ethereum, which can get bogged down with traffic and cause a slowdown in speed, Polygon boasts impressive speeds of up to 7,000 transactions per second. This high throughput is critical to ensuring a smooth experience for Instagram users.


In addition, Polygon has the lowest transaction fees of any blockchain. This means that sales and purchases will not require additional payments from users, something that plagued Ethereum during peak usage. Finally, the blockchain is environmentally friendly. It is so energy efficient that it is already carbon neutral and is expected to eventually become carbon negative.


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