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The problem with NFTs
There is a problem with NFTs. A big problem.
First, let’s remember why we all love NFTs: we are closer than ever to the persistence and decentralization of an asset.
Why data included in a Non-Fungible Token has a greater value than the data itself? Because of its persistence and its decentralization until the token lives on a decentralized and public blockchain.
As you should know, NFT can attach media like pictures, videos, or even music. So we got so many NFT applications: video game items, digital arts, lottery tickets… But some technical blockchain limitations force NFT platforms to find different ways to store the data depending on its size.
Most of the blockchains ask users for “gas fees” to write into it — a kind of contribution to remunerate those who run the chain. The more you want to write into it, the more you have to pay. Today, on Ethereum, a simple transaction costs ~$30, an NFT minting costs around $100…
As the ETH pumped a lot, storing data in an NFT is expensive. Storing 1 Mb costs ~$40k… Guess the price for 1 Gb 😅.
Storing text in the token is ok. This is very light. But storing a picture or a video can be very expensive. So NFT platforms were compelled to find a new way to store media assets. The problem is here: some storage methods make lose the benefit of blockchain persistence & decentralization. So it could decrease the value of an NFT.
That's why we built the AFA score: a way to know how persistent and decentralized is an NFT asset.
Last modified 2yr ago