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Key Elements of NFT Evaluation Value_Storage Mechanism

Using SDChain to build your blockchain business

As the NFT market becomes more popular in the future, there is one element that is not often mentioned now, but will be a key element in evaluating the value of NFT: storage. And it will likely affect the valuation of NFT to a significant degree. In other words, just like when buying a house, the “location” of the house is closely related to the price of the transaction.

According to the current storage method can be roughly divided into.

Stored on the same blockchain as NFT

Issuance and storage on the same blockchain is the purest form, meaning that the associated smart contracts and metadata and content are kept in a complete decentralized form. At this point in time, it is too costly to store creative works related to images or video in this way with current technology. Just as the cost and resources to store and maintain a collection of Zaha Hadid’s architectural models is very different from the cost of buying and maintaining an entire building in real life, it would be difficult for a developing NFT market, platform, or project to grow.

Storage in private or centralized servers

The smart contracts (contracts/certificates) for the creation and distribution of NFT are stored on the blockchain, and the creative works (content and metadata) are stored in private or centralized servers, mainly because of the amount of content data, cost, collector experience, etc. Therefore, the centralized storage method is adopted. contracts.

Adopting decentralized storage

This is the main direction that many projects are investing in to find a solution, but the bottleneck comes from the fact that because of the limitations of the storage method, it will actually take about a few minutes for collectors to display and view the content, which is hard to accept in terms of user experience. It’s like asking a voice assistant about today’s weather status, the user expects an answer within seconds. But if it takes about 3–5 minutes to get the information you want because of the technical architecture, users will no longer want to use the voice assistant feature.

SDChain Alliance continues to plan and provide marketable solutions in various ways of data storage and in response to changes in data types. solutions. However, it is certain that data storage infrastructure and solutions will gradually increase in importance and market value as the market develops. The SDChain Alliance will provide the right solutions to partners in this growing market and develop together with the overall ecosystem.

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