NFTs Are On The Rise. Will The Fall Follow?

NFT market is on the rise now: billions of dollars are invested in NFT art, games and other projects. According to the market law we may expect a serious downfall, which will put everything in place: NFT tokens and NFT projects that do not have practical use and media support will lose their value. Therefore, the most acute issue now is finding areas where NFT is really useful, really adding value. To give an example – it can be certification, setting contracts, selling physical objects, legitimization of the usefulness of the user towards the community.

It is definitely useful in art trade: it gives a piece of art a undoubted provenance, it also gives an artist to seal revenue on the percentage of sales every time the piece is changing hands. For music is is also break through – artists are not obliged to deal with market monopolists – they put their work on NFT and trade them without a middleman. Computer game developers and gamers are using it to buy and sell characters and features. NFT is useful for identification: all kind of certificates, diplomas, passports, even health history can be stored on NFT and it will be invincible – only you can share it with the officials or your doctor.

Basic NFT is not complicated at all; for this reason, it attracts inexperienced and uneducated community members. This has pros and cons: on one hand a lot of smack and unfinished projects – on the other you can find pearls in the stack of garbage.

On the other hand, there are number of disadvantages in using NFT, which so far are overlooked by many. The most important is an issue of storage. Storing your NFT on the blockchain is expensive and the management of big volume of data is not that smooth. As an alternative more and more users of “NFT paradise” are looking at centralized and decentralized storage.

First one is convenient, but you must rely on the management and trust their security and functionality.  Decentralized storage is much cheaper than other methods. However, there are decentralized projects like DeNet which offer new type of decentralized storage, already capable for safely storing any files, apps or NFTs. This solution stores all the data in the form of encrypted fragments, so only the owners have access to their files. In the end of the day user is one to decide which storage, which approach to use, which storage is the most convenient for them. 

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