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Fractional Ownership

πŸ’Ύ NFT Storage: IPFS, Arweave, On-Chain

Learn how NFT metadata and images are stored permanently

πŸ“¦ The NFT Storage Problem

When you buy an NFT, you're not buying a JPEGβ€”you're buying a token that points to a JPEG. But where does that image actually live? This seemingly simple question reveals one of the biggest challenges in the NFT ecosystem: permanent, decentralized storage.

⚠️ The $69M Problem

In 2021, Beeple's "Everydays" sold for $69 million. The NFT token lives on Ethereum forever. But the 5,000-image collage? It's hosted on a server somewhere. If that server goes down, the most expensive NFT in history becomes a broken link. This isn't theoreticalβ€”thousands of early NFTs have already suffered "link rot."

Reality check: Your $10K NFT might be pointing to an AWS bucket that costs the creator $5/month. If they stop paying...

πŸ”„ Interactive: Storage Location Comparison

Explore the trade-offs between different NFT storage approaches. Each has different costs, permanence, and practical limitations.

⛓️

On-Chain Storage

Analysis & Trade-offs

Cost
$50,000+
Permanence
Permanent
Speed
Slow (blocks)
Size Limit
~50KB
βœ… Advantages
  • β€’Truly permanent
  • β€’Censorship-resistant
  • β€’No external dependencies
⚠️ Disadvantages
  • β€’Extremely expensive
  • β€’Size limitations
  • β€’Gas fees spike
  • β€’Not practical for images/videos
🎯 Best Use Cases
Small text β€’ Metadata only β€’ Critical data

πŸ”— What Gets Stored Where

1.
Token (On-Chain): Token ID, owner address, contract
2.
Metadata (Off-Chain): JSON with name, description, image URL
3.
Image (Off-Chain): Actual JPEG/PNG/MP4 file

πŸ’‘ The Core Challenge

Blockchains are designed for small, expensive data (transactions). Storing a single 2MB image on Ethereum would cost ~$10M in gas fees. But NFTs need to reference images, videos, even 3D models.

Solution: Store data off-chain, but use decentralized, content-addressed systems that maintain the permanence promise.

πŸ“Š Reality Check: NFT Storage in Practice

~40%
Use centralized servers (AWS, Google Cloud)
~55%
Use IPFS (with varying pinning reliability)
~5%
Fully on-chain or Arweave (truly permanent)

🎯 What You'll Learn

  • β€’How IPFS uses content addressing to make data verifiable and distributed
  • β€’Comparing IPFS, Arweave, Filecoin, and on-chain storage trade-offs
  • β€’Best practices for NFT metadata and pinning services
  • β€’How to verify your NFT's storage is actually permanent