Art NFT's Are Going Missing

in LeoFinance2 months ago

Hey Jesspeculators

I've been laying into NFT's for some time now because I think it's a thorn in the side of crypto adoption once this blows up, which it rightly will. I've spoken about the bubble I see developing in NFT's, and I've spoken about the shortcomings of the current NFT implementations.

As a "know it all" millennial, I am always going to rub it in peoples faces, and I'll continue to do so; I've made calls on doge and NFT's despite the market saying otherwise and being called a hater and not understanding whats going on.

Oh, I understand alright, gambling and a poor understanding of tech, along with misguided and, in some ways unethical marketing, has brought us where we are today.

Now the latest story to hit NFT news is the disappearing NFT. I lol'd so hard when I read these stories; man, people really don't get how the internet works do they? But hey, keep "investing in the future"

....A future where you are having fun staying poor.

NFT-go-missing.png

Not All NFT's are New Financial Trash

Let me be clear; all NFT's aren't equal; an NFT that is native to an application or multiple applications can still have a market where the value can be extracted, such as in-game use.

When I refer to New Financial Trash, I am specifically talking about the frenzy around art NFT's and these images people are supposedly selling to one another as collectables.

The problem with these NFT's is the image itself and the token hashed onto the blockchain are not the same. The token is only a collection of text metadata added to the chain, and the image is referenced with an external source.

Image files are inherently centralised

The external source could be the site you used, and where they store their image files, it could be a centralised server, it could be a cloud storage service provider, or it could be a distributed storage provider.

The thing is the image itself as sweet blue fuckall to do with the token; all the token does is host a URL to where the image is hosted.

If the image provider site goes down,

  • if the host server crashes,
  • if the cloud storage bill isn't paid,
  • if the distributed cloud storage is cleaned due to rules

That's it; you're token is referencing a dead link; the image URL referenced in the blockchain is calling a URL that no longer exists.

A few NFT owners find this out the hard way, and now all they have is a very expensive token that points to a 404 page.

IPFS Isn't permanent

Some say they can reference multiple hosting providers that could help reduce the single point of failure or reference an IPFS link, but this is only a stop-gap solution. If the file on IPFS isn't accessed regularly, the file no longer has much value to the network and is often removed.

Now, sure, you could have a self-storage option that you pay for, but then how does that make the NFT an asset. If you're paying for storage, then it becomes a liability unless you can generate an income to offset the losses in storage.

Monetising NFT's outside rampant speculation

Perhaps you could charge others to view your NFT, get your NFT listed on sites that pay you a revenue share for curating with them.

Perhaps you could run ads on your NFT page, so income from viewing your NFT pays for its hosting, and you earn an income on top of that. To me, then it becomes an asset because it has cash flow.

As for now, NFT's are still overpriced references to JPEGs, with many of those links soon to die when these NFT platforms go bust in the future.

Sources

Have your say

What do you good people of HIVE think?

So have at it, my Jessies! If you don't have something to comment, "I am a Jessie."

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I haven't run into this issue but I could definitely see it as an issue. So I definitely think the NFT sites should definitely create back-ups. If something goes down, there should be some way to get it back. But who knows whether or not I am right because I am not an expert in that field.

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It’s not about getting it back, the image can always be referenced and hosted on another URL it’s that the tokens meta data minted into the blockchain which is supposed to be the permanent part of it now references something that no longer works/exists

So does this now make the token worthless? Can the token be rewritten? That would defeat the purpose of an NFT then wouldn’t it

Seems like quite the pickle for those advocating the tech

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I think NFTs in games like Rising Star and others can be overwritten but I am not knowledgeable about those stuff. It might just be the fact that you can't change it after making it.

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Wouldn't it be good if the data could be written on the blockchain itself. Yes, it would increase the cost of minting an NFT - but for NFT's that are worth a serious amount of money it might be worth it?

Or could an image have part of the blockchain reference embedded in it thereby making it unique - not sure how this would work (and why it couldn't be "copied") but just an idea.

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I agree

As for now,

most

NFT's are still overpriced references to JPEGs, with many of those links soon to die when these NFT platforms go bust in the future.

The ones that have utility can be fun though. I particularly like the idea behind new ones on Rising Star where musicians can turn their music into NFTs which also count as cards in other parts of the game.

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Yes I think that when an NFT's meta data is actually a part of a native application it makes sense, I do think we have to price in centralisation failure, if Splinterlands game goes down what do you do with all those NFT's? If however, theres a market where you can trade cards for items of other games or can be used in other games, then it starts to get interesting

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 2 months ago 

Naomi Brockwell did a great piece on this recently. -

Naomi is such a legend, she does shitcoin a fair bit but she always calls it like she sees it

This will likely get interesting down the track a bit.

Oh man, I see this blowing up in spectacular fashion, if I look back to our ICOs were booming and came crashing down this looks like it will be much worse

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Totally agree! NFTs are great for games or for tracking real-world assets, and I'm sure more applications will be found for the technology. The tokenized JPEGs application of NFTs totally misses the point. The current NFT hype is a bubble, and the sooner it bursts the better for all of us!

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Oh yes, if there's several oracles backing it up, lets say it was a stock certificate and several clearing houses act as oracles saying that stock certificates ID is in NFT's meta data is legit to me that makes sense.

Who is legitimizing the image or the reference of the image? It's beyond stupid. I hate this idea that just because something has a lot of money thrown at it makes it a good idea, lol its such a dumb argument.

I agree, but I think this has a while to play out, there's enough hype to keep it going and with BTC propping up the market it has a floor now while people "feel" richer. Also the intellectual dishonesty around content-based NFT's is just shocking

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I only tend to pick up NFTs that can be used in games or staked for income. The one exception would be the MLB packs, but I wasn't able to get any of those, so I don't really feel to bad about that. I might try when series 2 comes out though.

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A lot of people jump into something after looking at the trend and we all know how easy it is to start a trend using social media. A tween from a famous person can make anyone superstar in a day.
That's the case with NFT's as well.
We need to understand the concept and vision of the project before jumping into it.