Are On-chain NFTs The Future?
NFTs were nothing more than digital art copies before the Blockchain. So, it’s safe to argue that the development of Blockchains like Ethereum paved the path for the advent of NFTs. However, not all NFTs “exist” in the same way.
What Are On-Chain NFTs?
On-chain NFTs are tokens that are entirely written on the Blockchain and include metadata and smart contracts that are also present on the Blockchain.
That was a perplexing definition! Let’s take a closer look at the situation.
On-chain NFTs are written and kept on the Blockchain, for starters. The “information” of these NFTs is written on the mainnet and subsequently saved on the Blockchain.
This data also includes things like the created NFT’s transaction hash, which makes it even more unique.
After that, we should look at smart contracts. Smart contracts, which are inherent to the Ethereum Blockchain, are programs that execute themselves when certain criteria are met. They could be used to generate on-chain NFTs or point to locations where the NFTs are kept in most circumstances.
The core information of NFTs is their metadata. Something like the NFT’s unique characteristics, where the digital copy is stored, the NFT’s description, and much more. The metadata is integrated with the on-chain NFT, so this “information” is also stored on the Blockchain.
So far, we’ve only covered the fundamentals of on-chain NFTs. Let’s learn more about off-chain NFTs so you can better understand the underlying differences.
On-chain vs Off-chain NFTs
In the preceding section, we defined on-chain NFTs. If you only remember one thing from this article, it should be that on-chain NFTs exist solely on the Blockchain.
Off-chain NFTs, however, do not. Because off-chain NFTs are not stored on the Blockchain, they are referred to as “off-chain.” But where do off-chain NFTs go if they don’t exist on the Blockchain?
There are numerous options for off-chain storage. You could use cloud storage (Google Cloud, iCloud, and so on), centralized hardware server storage, or IPFS. However, this could cause a number of issues that on-chain NFTs will never face.
Challenges of Off-chain NFTs
Traditionally, people will opt for cloud storage because it is the most convenient and cost-effective option. Cloud storage, on the other hand, is typically internet-dependent, as your NFTs will technically be stored on the internet. Cloud-based storage is also dependent on the host (Google, AWS), so you don’t have complete control over what you store.
Off-site server storage is another option for serious investors. When you use a Cloud storage system, your host handles the server storage for you. You can use it to store off-chain NFTs on your own servers. Physical servers, on the other hand, are expensive to buy, run, and maintain it’s probably not worth it just for a collection of NFTs.
These alternatives have a critical flaw: security. It’s difficult to put your entire NFT project’s trust in a reasonably hackable Cloud or centralized servers that could go down at any time and result in the loss of your NFTs.
So the IPFS (Interplanetary File System) comes into play. IPFS, as the name implies, is a more secure method of storing data that employs a distributed and decentralized P2P storage network. So, if one storage location fails, there is a good chance that your NFT will be distributed to another.
One significant distinction between on-chain and off-chain NFTs is the nature of their smart contracts. While on-chain NFTs have built-in smart contracts, off-chain NFTs have smart contracts that only serve to connect people to the digital art storage location.
This means that if the off-chain storage system/network fails, the “link” provided by the smart contract is rendered useless. Nonetheless, on-chain and off-chain NFTs exist for a variety of purposes.
Upload Independent vs Collaborative Off-chain NFTs
At present, the NFTs of other public chains are independently created offline. After the creation is completed, the pictures/videos are directly transferred to the smart contract or stored on IPFS, which belongs to the off-chain creation, and then uploaded to the Blockchain, which belongs to independent creation off-chain, can we create directly on the Blockchain? And create with friends from all over the world? The answer is yes, we have used many features of IC to realize this function. Early days CCC users know our crowd-creation canvas and themed canvas. This is a function that allows multiple people to jointly create NFT on the chain. on-chain creation across borders, such as:
https://skeh5-daaaa-aaaai-aar4q-cai.raw.ic0.app/#/1155/m1155/3/htm6h-ziaaa-aaaah-qcp4a-cai
The smart contract will also record all the creation process, and finally turn it into a video, please remember that the final work is created by hundreds of people located in different countries, and created through the continuous operation of the smart contract. These features will be reopened after optimization, allowing everyone to create and collaborate on the Blockchain
So, Are On-chain NFTs The Future?
Yes, we firmly believe so. While off-chain NFTs are typically less expensive and more widely used in projects, on-chain NFTs have a brighter future.
With your metadata, smart contract, and NFT all on the Blockchain, you won’t have to rely on anything else to ensure its survival. Your NFT collection will remain intact as long as the crypto-currency exists.
Furthermore, this increases the value of your NFT. On-chain tokens meet their native network requirements and are literally a part of the Blockchain, which improves digital asset liquidity.
Furthermore here at C3-Protocol, we value true creation which is why we have been working tirelessly to provide our users with tools that will allow them to create or mint on-chain high-quality artworks.
Stay tuned for our next article, which will provide an overview of our brand new on-chain creation tool.
