Jonathan Victor noted that storing knowledge off-chain doesn't mean it's centralized. It's still decentralized once it's done thoughtfully.
Nonfungible tokens (NFTs) are publicized as blockchain-based technologies, there square measure misconceptions concerning however they're keep in keeping with 2 consultants. They argued that technically, these tokens don't exist within the blockchain however are literally keep elsewhere.
The Web3 storage lead at Protocol Labs and Alex Salnikov, the co-founder of Rarible, mentioned localized storage, the longer term of the NFT area and investment in NFTs.
According to Victor, main chains are terribly restricted in size and storing knowledge on the blockchain is terribly pricey. attributable to the massive file sizes of assets, off-chain storage solutions are introduced. He said that NFT knowledge will live anyplace from a hosted node or localized storage networks.
Salnikov additionally weighed in on the subject, voice communication that since NFTs are a brand new thought, there is tons of misconceptions concerning however NFT storage works. He said that the group action is confirmed by the blockchain, however the file is found away. He explained that:
“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.”
Despite this, the experts noted that storage for NFTs will still be thought of decentralized. Victor explained that their project NFT.Storage will this by exploitation decentralized storage networks like Filecoin (FIL) and the interplanetary file system (IPFS). With this, they're able to store NFTs as a public sensible, like the net archive. He said that:
“When we think about decentralization — I like to frame it in terms of whether there's a single point of failure. Simply storing data off-chain doesn't introduce centralization — so long as we're doing it thoughtfully.”
Salnikov also shared that in the NFT marketplace Rarible, they hold on NFTs mistreatment IPFS. However, to more enhance information integrity, the Rarible co-founder same that they integrated with NFT.Storage, which implements each storages on Filecoin and IPFS.
( Ezra Reguerra, Cointelegraph, 2022 )