The Onchain Spectrum: NFT Storage on Ethereum, Bitcoin, and Solana

Understanding where NFTs are stored is crucial for anyone involved in the space, especially as the technology and platforms evolve. The concept of the onchain spectrum helps in grasping the different storage methods used across popular blockchains like Ethereum, Bitcoin, and Solana.

IPFS (InterPlanetary File System) is a decentralized, peer-to-peer network that's commonly used to store NFT metadata. When implemented correctly, IPFS offers strong redundancy and availability, ensuring that the associated art remains accessible. However, improper usage can lead to scenarios where the art becomes unavailable, rendering the NFTs as mere tokens without their associated visual or functional components. This risk was recently highlighted when NFT sleuths found that nearly 30,000 NFTs from eBay's now-defunct KnownOrigins marketplace, including works by XCOPY, were dependent on outdated Infura links, putting their availability at risk.

Onchain Storage Spectrum:

1. Ethereum:

   • Fully Onchain: NFTs where all data, including art, is stored entirely on the Ethereum blockchain. This method ensures maximum longevity and availability but is often costly due to Ethereum's gas fees.

   • Partially Onchain: NFTs where some components (e.g., metadata) are stored on Ethereum, while the actual art might be stored offchain or on IPFS. This is a more common approach due to its balance between cost and decentralization.

   • Offchain with Onchain Pointers: Here, the NFT points to an offchain location (like IPFS or centralized servers). The token exists on Ethereum, but the actual art isn't on the blockchain.

2. Bitcoin:

   • Ordinals: NFTs on Bitcoin use a protocol called Ordinals, where individual satoshis (the smallest unit of Bitcoin) are inscribed with data. This is a newer method, and while it offers the security of Bitcoin, it is still evolving in terms of functionality and user adoption.

   • Layer 2 Solutions: Projects are exploring ways to create NFTs on Bitcoin via Layer 2 solutions like Stacks, which enable more complex smart contracts and storage options.

3. Solana:

   • Fully Onchain: Similar to Ethereum, Solana allows for fully onchain NFTs, though this is less common due to the cost associated with storing large amounts of data directly on the blockchain.

   • Metaplex and Arweave: Many Solana NFTs use the Metaplex protocol, which often combines onchain metadata with art stored on Arweave, a decentralized storage solution that offers long-term data permanence.

   • Hybrid Solutions: Some projects use a mix of onchain and offchain methods, with critical data stored on Solana and the bulk of the art stored on a decentralized system like Arweave or IPFS.

Key Takeaways:

• Storage Decisions Matter: Depending on how and where the NFT data is stored, the long-term accessibility and ownership of the NFT can vary significantly.

• Be Informed: As a collector or creator, understanding these storage nuances is essential for making informed decisions in the NFT space.

By grasping the basics of the onchain spectrum across different blockchains, you can better navigate the complexities of NFT storage and make smarter decisions in your digital art journey.

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