NFT Series

What are the concerns of NFTs?

An open discussion on the concerns of NFTs

NFT scams and it’s higher price

Actually, who decides the value of an NFT? In this hype of NFTs, someone or everyone approaches this with the mind of getting rich quickly. So some people are taking advantage. For example, Evolved Apes NFT creators scammed their investors. So if the NFTs involve such scams and get-rich-quick schemes can affect the future the possibilities that an NFT can bring out in this digital era.

Investors Spent Millions on ‘Evolved Apes’ NFTs. Then They Got Scammed.

NFTs are unregulated

NFTs are completely unregulated. NFTs are even sold out without the permission of their creators. For example, some scammers stole the identity of a popular artist and sold her artworks after she died cause of cancer.

An artist died. Then thieves made NFTs of her work

Higher energy consumption & gas fees

NFTs are minted on the blockchain. Blockchain technology normally consumes more energy to perform a transaction. Especially on the Ethereum blockchain, where most NFTs are minted, the gas fees are high. Polygon-like sidechains are raised to get rid of these high gas fees.

NFT is not stored on blockchain

When we mint an NFT on the blockchain, the blockchain contains only that NFT, the digital certificate, or the information about who owns that NFT and a hyperlink URL to the website where the NFT image and details reside. The actual NFT image and its details are live on an external website server not on the blockchain. In such a case, the digital image depends on the website’s survival and if it goes down, then the image is gone. Also, we are blindly giving trust to that website owner who can replace the image URL at any time. Even though being an owner of the NFT, you don’t own an NFT; instead, own a link to a file.

We haven’t seen yet what an NFT can pull out. So far we have seen only buying and selling of images at a higher price. There can be many more possibilities that yet need to get explored with NFT!

Add your concerns to the comment section. Have a great day:)

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