NFT storage - The most secure ways to store NFTs

[TL; DR]

Creators can use physical and digital assets to back their NFTs.

NFT marketplaces can store the NFT data on centralized servers or in peer-to-peer storage facilities.

Gate.io and MetaMask are examples of secure and convenient NFT storage platforms.

Arweave, Filecoin and IPFS are the other storage facilities for storing NFT data.

Introduction

The year 2022 was significant in the history of non-fungible tokens as many people started using them, especially on social media platforms such as Instagram and Twitter. That is the reason why PFP NFTs, dynamic NFTs and physical NFTs have become popular. This article focuses on how to store NFTs securely.

How do NFTs connect to digital assets?

Non-fungible tokens are popular because developers can use both digital and real world assets to back them. In reality, people can tokenize both physical and digital assets like videos or music. For example, sports teams can turn their game cameos into NFTs in order to reach many people.

Some notable digital assets that exist in the form of NFTs are in-game assets like weapons and characters which are important components of the gaming sector. The gaming platforms use such digital assets to tell their stories and entertain the players.

Read also: What are on-chain NFTs and why do they matter

Elements of NFTs

Non-fungible tokens, which are unique digital assets, have several components which include smart contract addresses, media, token ID, metadata and owners.

Smart contract: A non-fungible token smart contract address is a unique identifier of the location of the smart contract that hosts and manages its logic.This is because every NFT exists on a smart contract on the blockchain. And it is the smart contract that generates the NFT and dictates how it functions.

Token ID: This is the identification mark of every NFT that distinguishes it from the other tokens. In other words, it is a unique identification code or identifier in the form of a string of alphanumeric characters. Each NFT has its own token ID different from that of other digital tokens.

Metadata: An NFT’s metadata is a string of figures or text formatted in a special way and contains various data about the token. For example, it contains a full deion of the NFT’s media, name and traits, among others. In most cases, this information is not stored on the blockchain since it consumes much space. Although it is possible to store such information on-chain it is very expensive to do so.

Media: Most NFTs have media components like videos, images or songs. Such material is stored somewhere and is referenced in its metadata in the form of URLs. People keep these components in centralized or decentralized storage facilities.

Owner: This refers to the digital address through which someone manages the NFT. As we know, all cryptographic tokens, being fungible and non-fungible, exist on the blockchain.

Creator/minter: The creator or minter refers to the wallet address used to mint the NFT.

Blockchain: The blockchain keeps a permanent record of all NFT transactions, enabling people to track their movements. It is also important to understand that no one is able to alter a record of such transactions.

Components of the Blockchain related to NFTs- Mandiant

The above indicates some components of NFTs which include creator address (owner), contract address and token ID.

Storing the NFT data

The various components of NFTs are stored on the blockchain or on private servers such as Arweave. However, it is possible to store the different components of the non-fungible tokens in separate locations. For example, the actual content of the NFT such as media may be kept off-chain or on centralized servers, while its metadata may exist on the blockchain.

If the media, for instance, is kept off-chain, only its URL will be stored on the blockchain. It is often computationally expensive to keep all the components of NFTs on the blockchain.

Centralized storage

As hinted above, some components of NFTs can be stored on-chain or off-chain. Generally, therefore, the storage can be centralized or decentralized. With centralized storage the NFT data is stored on servers controlled by a central authority such as a company. The Amazon Web Services is an example of a centralized server.

The flip side of using a centralized server is that if the creator stops to maintain it, the will permanently lose the data. The people that control the server can also alter the data which it stores without the consent of the owner. Therefore, if someone can alter, seize or censor the content its creator will not have full ownership of it.

Decentralized storage

Decentralized storage involves using a distributed network of nodes that stores the data. This means that people from anywhere around the world can participate in storing NFT data as long as they have the capacity in terms of computing power.

The geographical localization of storage ensures that there is ample storage capacity for much data. Also, there is no single point of failure, enhancing the security of the data. Arweave and the InterPlanetary File (IPFS) are examples of decentralized storage solutions.

InterPlanetary File (IPFS)

InterPlanetary File (IPFS) is a peer-to-peer data storage . This means that there are many nodes or computer s that cooperate in storing a huge volume of data. As such, no single person or organization is in control of the content. Therefore, IPFS enables NFT creators to store the required data off-chain with a very low chance of hacking.

The NFT data which is uploaded on the IPFS is given a unique content identifier (CID) since it has its own cryptographic hash. In addition, there is no possibility for alteration of the data. Basically, the InterPlanetary File conforms to the key principle of the blockchain, the absence of intermediaries.

Interplanetary File (IPFS)- Cryptoadventure

Compared to centralized servers, the IPFS is a long term data storage . Therefore, it is a reliable storage facility for NFT data. It stores the media associated with the NFT. When someone mints the NFT only its digital signature or certificate of ownership is stored on the blockchain.

Generally, the blockchain is good at storing small bits of data rather than large chunks of material such as 3D models, images and animations. It is essential to understand that the NFT entry is stored on the blockchain while the metadata and image files are best kept on the IPFS.

Arweave

Arweave is an alternative storage facility for metadata and image files since it guarantees persistence. However, the users pay a small fee that enables them to store their content for 200 years. Since it is a peer-to-peer data storage the content is kept on the blockchain.

There are many computers, called miners or nodes, that replicate the data which people store in the . In return, the miners are paid a reward in the form of the $AR token. The involvement of the miners ensures that the data is never lost.

NFT Marketplaces and Their Storage Solutions

Most NFT marketplaces such as Mintable and Valuables store their NFT data in decentralized and centralized facilities. As noted above, most metadata and media files are stored on centralized servers like Amazon Web Services.

However, NFT entries are recorded on the blockchain. Currently, the Ethereum blockchain hosts many NFT platforms. Let’s discuss how some top NFT marketplaces like Mintable, SuperRare, and Valuables store their NFT data.

Mintable

Mintable is a Singapore-based NFT marketplace as well as an application where creators can mint their NFTs. It supports the creation and trading of various NFTs that deal with art, music, collectibles and games. As expected, people can also buy and sell NFTs.

Mintable Application for NFT- Medium

The NFT related files which include the media are stored on both centralized servers and decentralized facilities. For example, the metadata is kept on Amazon’s cloud service, Arweave, IPFS, Filecoin or any private server of choice.

Superare

This is a marketplace where people trade unique and single editions of digital art. Basically, the artists tokenize digital collectibles which are authentic. The assets are stored on the InterPlanetary File (IPFS).

Valuables

Valuables is a custom NFT marketplace where people trade various NFT based Tweets of other users. Currently, this platform stores the screenshots of the Tweets on IPFS. However, it has plans to use other storage services like Arweave.

Best NFT storage platforms

Storing NFT is a very simple thing since there are many reliable platforms to do so. As we have noted, people can store their NFTs in NFT cold storage facilities, free decentralized storage s and centralized servers. In addition, they can keep their NFTs on exchanges such as Gate.io and in digital wallets like MetaMask.

Storing NFTs at Gate.io

Gate.io is one leading crypto exchange where people can mint, buy and sell NFTs. It has a centralized NFT minting and trading platform called Magic Box which is very simple to use. An NFT creator or trader is able to create an account on the exchange within a short period.

The good thing about Gate.io’s Magic Box is that it has a user-friendly interface as well as low cost NFTs which help ordinary people to create and own them. The users can keep the NFTs on the platform. However, those who want to store them elsewhere can do so. They can store them in NFT cold storage wallets such as Ledger Nano.

MetaMask

NFT holders can choose to keep their tokens in MetaMask wallet which is comparatively very secure. As well, this wallet easily interacts with various decentralized applications and platforms like OpenSea and Axie Infinity. The reason why many NFT holders store their holdings in Metamask is that its transactions are encrypted and the individuals use passwords which act as an additional protection layer.

FAQs about NFT storage

Does OpenSea use NFT storage?

OpenSea does not store NFTs like other marketplaces. Its role is to help the NFT holders to trade their NFTs through leveraging the Ethereum network. However, OpenSea states that NFT creators can store their NFT data on IPFS.

How much storage is an NFT?

The average storage of an NFT is fifty megabytes, meaning that some of them use less space while others occupy more. Nevertheless, an NFT with a good size should be less than one hundred megabytes.

Can we store data in an NFT?

It is possible for an NFT to store data although that is very expensive. Alternatively, the NFT can store a LINK to the source of data that exists in another location such as a decentralized storage facility.

Where can you store your NFT?

You can store your NFT on centralized exchanges such as Gate.io or in digital wallets such as MetaMask. However, in the real sense an NFT only exists on the blockchain and the wallet enables its holders to access it.

How is NFT data stored?

People can store NFT data on centralized servers such as Amazon Web Services or on decentralized storage like IPFS, Filecon and Arweave. In either case, the creator uploads the file that contains the important data on the platforms.

Is IPFS safe for NFTs?

It is safe to store NFT data on IPFS because it uses a distributed storage facility. This means that the files can exist on various computers or nodes around the world. In that case, no single person controls such data.

Conclusion

There are various places where marketplaces can store their NFT data, including the NFT cold storage facilities, free decentralized storage and private servers. Many marketplaces keep the NFT data on-chain and off-chain. However, individuals can store their NFTs on crypto exchanges such as Gate.io or on secure digital wallets like MetaMask.