You are currently viewing Nonfungible tokens don’t live on the blockchain, experts say

As nonfungible tokens (NFTs) are advertised as blockchain-based technologies, there are misconceptions on how they are stored according to two experts. They argued that technically, these tokens do not exist in the blockchain but are actually stored elsewhere. 

In a Cointelegraph interview, Jonathan Victor, the Web3 storage lead at Protocol Labs and Alex Salnikov, the co-founder of Rarible, discussed decentralized storage, the future of the NFT space and investing in NFTs.

According to Victor, main chains are very limited in size and storing data on the blockchain can be very expensive. Because of the large file sizes of assets, off-chain storage solutions are introduced. He said that NFT data can live anywhere from a hosted node or decentralized storage networks.

Salnikov also weighed in on the topic, saying that since NFTs are a new concept, there can be a lot of misconceptions about how NFT storage works. He said that the transaction is confirmed

Keep reading this article on Cointelegraph.com.

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