In early March, the performer under the pseudonym 3Lau sold his album supported by a unique NFT-token. He did it on the NiftyGateway platform, and the amount of the transaction was 11 million dollars. But the problem is that the original work of the musician is no longer found. You can download a copy of the album, but the very original digital product does not exist. It turns out that the trend of unique tokens has a reverse side of the medal - this is a serious deficiency that needs to be urgently correct. We tell about it in more detail.
NFT-tokens are the main trend of the beginning of this year in the world of technology. They reveal the advantages of the blockchain and make them available for new industries. In this case, we are talking about digital art, confirm the ownership of which and allows the block chain.
In general, the logic is simple: information about a certain subject is tied to a unique token inside the blockchain. Since the last unchangeable, fake data or assign a coin to myself simply will not work. Instead, investors are protected from fakes and the ability to easily prove the fact of ownership with a certain subject. We disassembled in detail the topic NFT in a separate material. We recommend to get acquainted to understand the essence of what is happening in the niche.
There are many examples of unique work with the use of NFT. Among them, including the branded drawings from the 2miners mining pool, which depicted the main heroes of the world cryptocurrency in the type of Vitaly Biderina or the Wincloss brothers.
You can enjoy them and get acquainted with the details of the NFT creation process by reference.
Disadvantages of NFT-Tokenes
When we talk about NFT, we usually talk about tokens created using the Etherium network standard called ERC721, while other blockchas also have a similar standard. Tokens can be physical property by type of house or artwork, as well as to be a virtual collectibles - such as digital shopping cards or even video clips with bright NBA events.
However, in most cases, NFT is actually just a smart contract, that is, the content and metadata are stored separately from the object itself. This is mainly because it is too uncomfortable and burdensome in the Ethereum blockchain, reports Decrypt.
After purchasing NFT, you must make sure that all information about the token and its connections with the physical subject or digital code is in preservation. There are several ways to lose or change the purchased NFT. First, the token with a smart contract may not communicate directly with the asset. Also, the asset can be at the CLoudinary centralized provider, used by niftygateway, which ultimately can disable its servers. Secondly, NFT can simply refer to the URL, information from which is actually easily subjected to modifications from extraneous personalities.
In other words, when buying NFT, you have two components: a smart contract and metadata themselves affected by the object. The smart contract is and is performed in the battery of the Etheric, and everything else is most often stored in a centralized source. If some problem happens to him, the fact of "uniqueness" NFT and, in fact, the entire value of the tokens will be completely lost.
How to solve this problem? Experts recommend using the IPFS and Arweave combination. The first is an interplanetary file system, that is, a peer communication protocol, and the second - cryptostarta, which can provide permanent storage of information in IPFS on a decentralized basis. Only in this case, the owner of the NFT can get an almost one hundred percent guarantee that nothing happens to the collectibles acquired by them.
We believe that such problems are a consequence of the youth of this niche. And although Cryptokitties cryptocolum cats exists since 2017, the mass popularity of the NFT sphere began to use it in 2021. So she has where to develop - as well as the problems that need to be solved.
So in this case, users need to wait until the creators of trading platforms get away from possible risks. Fortunately, while the incidents of the disappearance of digitalization objects are single. Therefore, with purchased works most likely nothing will happen.
Look even more interesting in our cryptocat of millionaires. There will discuss other events that affect the blockchain-assets industry.
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