Non-Fungible Tokens are marketed as blockchain-based technologies with several misconceptions about storing them. Technically NFTs do not exist in a blockchain, but they are stored elsewhere.
The Flexibility Criteria – NFT Tokens
In an interview, Jonathan Victor, lead at Web3 storage at Protocol Labs and Alex Salnikov, co-founder at Rarible discussed decentralized storage.
Main chains are size-bound and data storage can be expensive on the blockchain. Because the assets are large in file size, off-chain data storage solutions are introduced. NFT data is flexible to keep anywhere from a hosted node to decentralized storage networks, said Victor.
Salnikov also added as NFT is a new concept to the global crypto market NFT storage can have numerous misconceptions about the storage work process. Further, he said that the transaction gets confirmed by the blockchain, but the file can be located elsewhere.
“It is important to understand that the NFT living in a user’s wallet only points to the file it represents — the actual file itself, also known as an NFT’s metadata, is typically stored elsewhere,” said Salinkov.
The Future of NFT Storage Brightens
Regardless of this, the experts pointed out that NFT storage can be considered as decentralized. Victor added to this by explaining that NFT. Storage does this by using decentralized storage networks like InterPlanetary File System (IPFS) and Filecoin (FIL).
Talking about Decentralization – I like to frame it in terms of whether there’s a single point of failure. Simply storing data on an off-chain channel doesn’t introduce centralization – so long as we’re doing it.
Salnikov also shared his thoughts saying they also store NFTs using the marketplace. To enhance the data security, the Raible team integrated with NFT.Storage. This helped them store on both platforms Filecoin and IPFS.
Victor expressed an optimistic vision on NFTs. More digital goods will be introduced by the NFTs and more use cases will pop up. He also added saying it may happen soon that the upcoming merge on Ethereum may boost NFT prices. Salnikov is trying to democratize the storage and access of NFTs.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.