Do you really own your own #NFTs? How do projects create #NFTs?

 Do you really own your own #NFTs? How do projects create #NFTs?

I will temporarily divide people into 2 main audiences:

   1. You collect and mint NFTs to qualify for an airdrop event of a certain project, or you are simply given NFTs during your activities.

   2. You really love and do research about NFTs. Are you passionate about the beauty or the community or project behind that NFT collection? You think NFTs are a valuable and profitable asset class.

 

=> If you are type 2, it's great that we share the same passion and I think this article is very suitable for you.

 

=> If you belong to type 1, I think this will also be a useful article to help you better understand NFTs.

 

Before going deeper into the article, let's clarify a few concepts:

 

- NFT (Non-Fungible Tokens) is a type of digital asset that represents real-world items such as art, music, game items, and videos,…NFT has appeared since 2014 and is becoming increasingly popular.

- When you own an NFT, you own the #tokenID and #traits of that NFT.

   + #tokenID: Is the NFT number in a collection. Assuming a collection has 100 NFTs, typically the tokenID will have a value from 0-99.

 

#traits: Includes the characteristics of that NFT such as eyes, nose, mouth, color, emotions, personality, image,...These are the factors that make an NFT special.

 

=> The essence of owning an NFT is that you own the traits and tokenID of the NFT in that collection. The rarity of NFTs will depend on the percentage (%) of traits appearing when you mint NFTs and this depends on your luck.

 

So are you wondering if all the information about your NFT is really saved entirely on the blockchain?

- In fact, not all NFT collections are completely saved on the blockchain (#fullyonchain).

 

   + #ordinalpunks did this very well as this collection was one of the first NFTs and laid the foundation for the entire NFT industry later. The information of these NFTs is stored on the blockchain or retrieved from the blockchain without needing to be stored somewhere else.

Today there are many famous collections today that do not save the #traits of that NFT on the blockchain and they use another service to do this (#offchain).

 

    + #IPFS is a very popular storage service today. This is the technology that famous collections like #azuki #BoredApe,...have applied to save traits and images of NFTs on the internet.

 

    + #IPFS stands for Interplanetary File System, a peer-to-peer distributed file system that connects all computer devices together. More specifically, it will distribute stored data in a P2P form, also known as a peer-to-peer network.

 

    + Simply put, #IPFS helps users store information with high access speed and low cost. Information about the NFTs you own will be retrieved from #IPFS according to the structure: ipfs://...

 

=> In short, if you own an NFT #onchain, you will not need to worry about the information or long-term existence of that NFT. On the contrary, if you own an #offchain NFT, most of the traits and images of that NFT will be stored on #IPFS. This creates doubts for NFT collectors about the uniqueness, ownership, and safety of NFTs.

 

=> Although the possibility of #IPFS stopping working is very difficult, it is not impossible when this technology depends on distributed #nodes, CID,...If this happens, it is obvious that your NFT will No longer exists.

 

=> If you are wondering why NFT sets like #azuki #BoredApe,...are not fully #onchain, it is because these are #PFPs collections with quite beautiful and sophisticated visuals. Therefore, it is very difficult to save all NFT data on the blockchain because the fee for deployment and storage will be huge.

 

=> In addition to #PFPs style collections, there are also abstract style collections. For example, #genart-oriented collections like #fidenza,..

 

=> I am very interested in NFTs, especially #onchain NFTs. Because these NFTs are completely saved on the blockchain and making an #onchain collection is not easy at all.