NFT IPFS explained

One common misconception surrounding NFTs has to do with what an NFT actually is. What is it that you actually purchase? You’d think it’s the image. After all what most people associate with NFTs are the Apes, the Punks, the Doodles. But that’s only partially accurate.

NFTs are in their essence immutable and non-fungible. Meaning they are unique and cannot be changed. While both are technically true, the latter can be especially deceptive. Because of the very high cost of storing data on the blockchain, NFTs are most often just links directing you to where the actual metadata is. So while those links are in fact immutable, what the URIs contain is very much mutable.

There are several problematic implications that come from NFTs being mutable, for example:

• Rarity isn’t assigned at mint. In many collections before the tokens are revealed, the URI in the NFT contains no metadata, but rather some basic non-unique information (to read more about it go here). That information is then changed to the actual metadata during reveal. So with that information mutable by design, there is a window of time in which whoever is in charge of the collection can influence the final rarity or artwork and pre-assign the best traits to specific holders.
• Rarity isn’t permanent. Even if after the reveal your token has been assigned the rarest traits it’s not certain that things will stay that way. Whoever owns the server containing the URI in your NFT is free to change the metadata as they please.
• The metadata could simply disappear. If the server containing all the metadata went out, you’d end up with a worthless link to an empty website. Your NFT, which is stored on the blockchain, would remain untouched, but its official content would be blank.

Right now the most common solution to NFT mutability seems to be the Inter Planetary File System, or IPFS. It’s a file system, that allows every participant to restore any file if they possess the exact version of the original. And the exact original version is the only one the IPFS protocol would ever locate, because of the way it’s designed. So in theory IPFS ensures that a number of hosts allow access to an immutable file, solving both issues mentioned above. Instead of single storage system, it’s a network of computers and hosts that store pieces of the files and make them available whenever necessary. However there are limitations to this system.

Just because a number of hosts can provide access to a file, it doesn’t mean that they will. Since the responsibility for keeping the files active falls mostly on random people there is little to no guarantee they’ll actually do it. So rather than optimistically relying on strangers to keep the files alive, the sensible thing to do is always keep the files on your own devices.

Ultimately in a space that favors decentralization and immutability IPFS seems like the best solution, but not by itself. It’s more of a tool, which paired with some best practices secures some of the most coveted aspects of NFTs. As with anything in this space, use the tools at your disposal wisely and do your own research.