Music NFTs: What Musicians and Fans Should Know

Music NFTs are digital assets stored on the blockchain and represent ownership of a piece of music. They’re used to buy, sell and trade music rights and grant owners benefits such as royalties. 

Most NFTs are typically associated with digital art and collections such as Bored Ape Yacht Club; however, their technology can also impact how we buy and sell music. 

The music NFT idea is to give power back to musicians, helping them directly sell and collect royalties through their craft. In the modern music industry, streaming platforms such as Spotify have resulted in 50% fewer album sales since 2010. This has left musicians struggling financially, with groups such as the Union of Musicians and Allied Workers protesting against Spotify for higher payouts. 

Music NFTs let musicians sell directly to their audience, increasing the amount they make from each sale. They also let musicians give back to their fans, for example, the blockchain enables artists to “airdrop” each of their NFT holders exclusive new NFTs. These NFTs could include exclusive songs, gig access, and more. 

This article will cover what music NFTs are, how music NFTs work, the different types of music NFTs, where you can buy them, and whether or not they’ll change the music industry. 

What Are Music NFTs?

A music NFT (non-fungible token) is a unique digital asset representing music ownership. It can be bought and sold like any other NFT and often combines a visual component with a musical one. 

Music NFTs can be purchased on digital NFT exchanges such as Royal. These exchanges let artists create tiered NFT purchase options based on fans’ interests. For example, on Royal, fans can choose between “Gold,” “Platinum,” and “Diamond” NFTs. Each tier offers additional benefits, including VIP tickets, signed vinyl records, and exclusive merchandise. 

Once a music NFT is owned, it can be listened to like a normal piece of music or sold on NFT marketplaces such as OpenSea. 

How Do Music NFTs Work?

Music NFTs work like traditional CDs. A limited number are released, and instead of limited edition CDs,  fans can choose from different tiers based on the rewards offered by an artist. 

They’ve already been used by celebrities such as The Chainsmokers, Snoop Dogg & Steve Aoki. Snoop Dogg, for example, released 25,000 Stash Box NFTs as part of his B.O.D.R. (Back on Death Row) album, selling each for $5,000. He made $44 million in revenue, which is drastically higher than what he’d earn through streaming. 

Once sold, a music NFT can be used to track the use of a song, showing data such as how much it’s played and how often it’s sold, with musicians earning a royalty for each sale. 

What Are The Types of NFT Music?

Music NFTs have two different functions. 

The first function represents ownership and royalty share of a song. Known as Limited Digital Assets (LDAs), LDAs give fans a percentage of revenue from streaming royalties as long as they hold the NFT. This was first used on Royal by 3LAU, who minted the first LDA for his song Worst Case. 

The second function of music NFTs is the right to stream a song. These NFTs give the owner the right to stream a song for an agreed period, but come with no additional benefits.

Artists are also looking for lucrative ways to give back to fans with NFTs. Like Gary Vee’s VeeFriends, artists are giving NFT holders exclusive access to limited edition merchandise, early access to concert tickets, meet and greets, airdrops, giveaways, and exclusive events to interact with the artist themselves. All fans need to do is hold the NFT to earn their rewards. 

For example, in November 2021, American heavy metal band Avenged Sevenfold released an NFT collection known as the “Deathbats Club.” This 10,000-NFT collection gave holders the chance to earn free tickets for life, merchandise, and even the opportunity to hang out with their favorite band members. 

Which NFT Exchange Can You Buy Music NFTs From?

If you want to buy a music NFT, you’ll need to use an NFT exchange. Popular exchanges such as OpenSea offer music NFTs; however, they’re somewhat limited compared to dedicated music NFT exchanges. 

Music NFT platforms provide musicians and fans with features to create, listen to, buy and sell NFTs. Here are four of the best music NFT exchanges to buy your music NFTs from. 

Royalty 

Royalty helps music artists mint royalty music NFTs and lets holders share revenue from sales. All NFTs sold on the platform give buyers a royalty on each sale, ranging from 0.002% to over 1% per sale. The artist can choose what % of royalties go towards NFT holders, with artists such as 3LAU dedicating 100% of all royalty sales to his fans. 

SoundXYZ

SoundXYZ is a music platform founded in 2021 that lets musicians create and sell music NFTs. It has a built-in wallet where users can hold their NFTs once purchased and a marketplace to buy and sell music. As of October 2022, musicians have earned $3,545,770.76 from sales on the platform. 

Opulous

Opulous is a blockchain-based NFT music exchange that also offers DeFi loans. It offers music by artists such as Tyga and Lil Pump as well as music loans for new artists who need a financial boost. 

GlassXYZ

GlassXYZ is a music NFT marketplace that specializes in music videos. Still in early development, the platform has ten music creators and 597 sales on the platform as of October 2022. It’s the perfect platform for music fans who love music videos. 

Final Thoughts: Can Music NFTs Disrupt The Music Industry?

Music NFTs are still a relatively new concept but have shown a great deal of potential for both fans and artists. 

Firstly, they provide musicians with greater control over their music, including how it’s used, how it’s shared, and most importantly, how they can profit from it. With a greater share of the profits, musicians could use NFT purchases to fund additional studio time and boost their overall musical career. 

NFTs also allow artists to give back to their fans and build a stronger fan-artist relationship. They can offer a wide range of gifts to NFT holders, giving loyal fans a chance to meet their favorite band members, collect exclusive merchandise, and even earn free concert tickets. 

By combining traditional album sales, concert sales, and NFTs, artists could begin to increase their income potential and connect with their fans in ways never possible in the past, creating an exciting new trend in the music industry. 

Gary’s Vee Friends NFTs Explained (Read Before Buying)

VeeFriends is an NFT project built on the Ethereum blockchain by Gary Vee. The collection consists of two series and was created to help Gary Vee give back to his community. 

The first series was released in May 2021 and included 10,255 NFTs and 268 characters, 1242 of which were held by Gary Vee. 

The second series was released in April 2022 and included 251 characters and 55,555 tokens. This series was released alongside VeeFriends Mini Drops and Book Games NFT projects.

This article will cover what VeeFriends are, how they work, who created them, how you can buy and what VeeFriends season two brings to the table. 

What is VeeFriends?

VeeFriends is an NFT collection created by Gary Vee. The series one collection is based on 268 characters hand-drawn by Gary, each of which was inspired by human traits he admires. 

The original collection consisted of 10,255 NFTs; however, 12% of the supply was held by Gary Vee and is referred to as G.O.O. (Gary Originally Owned). 

The NFTs take the appearance of cartoon animals, bugs, and unique characters, each with different backgrounds and features. These are then divided into three categories: access, gift, and admission, each of which gives holders different benefits.

Access tokens provide direct access to Gary Vee or other holders.

Gift tokens offer unique experiences created by Gary Vee and his team. 

Admission tokens provide holders a three-year access pass to VeeCon and are the most common in the collection. 

As of October 2022, the highest-selling VeeFriend was a Watchful and Attentive Embarking Ape, which sold for 105 ETH (around $333,807) to Wu-Tang Clan. The project currently has a market cap of $133.5 million and a floor price of 4.96 ETH. 

How Does VeeFriends Work?

VeeFriends series one consists of 10,255 tokens, categorized by access tokens, gift tokens, and admission tokens. Here’s how they work. 

Access Tokens

Access tokens are broken up into four categories: one-to-one- group, competition, and scholarship. Ninety of these tokens offer in-person access, and 210 offer virtual access. 

There are 165 group access tokens, where investors can spend time with GaryVee or other VeeFriends holders. These tokens include: 

  • Ten Breakfast Bat tokens for in-person access
  • Ten Lunch Lady Bug tokens for in-person access
  • Ten Dinner Deer tokens for in-person access
  • Ten Brunch Bear tokens for in-person access
  • 125 Hangout Hawks tokens for virtual access

There are 108 one-on-one access tokens, each offering a unique experience. For example, courtside seats at sporting events, a wine shopping experience, and other one-to-one experiences with GaryVee. Other tokens include FaceTime calls with Gary; five tokens give holders access to events where GaryVee is a speaker. 

There are 22 competition tokens, allowing holders to compete with GaryVee in a pre-chosen game. Games include basketball, chess, bowling, and more. 

There are five Sorcerer Scholarship tokens, which investors must apply for to be accepted. If accepted, holders will receive mentorship from Gary Vaynerchuk.

Gift Tokens

Out of the 10,255 VeeFriends tokens, 555 are Gift Goat tokens. These tokens give holders three years of access to VeeCon. They’ll also receive a minimum of six physical gifts annually for three years. Each Gift Goat was hand drawn by Gary and can be verified on VeeFriends.com.  

Admission Tokens

Admission tokens make up the largest percentage of VeeFriends, with 9,400 tokens in total. Each character has 40 tokens with different rarity levels, the rarest of which is “Epic,” of which only two exist for each character. Other levels include very rare, rare, limited, and core levels. 

The tokens come with a three-year access pass to VeeCon.

There are forty tokens in differing rarity levels and a total of 9,400 tokens, making this category the largest within the VeeFriends NFT universe. The rarest category is “Spectaculars,” of which only one token exists. “Epic,” the next rarest, as only two.

Additional categories include very rare, rare, limited, and core levels that gradually increase in numbers. 

Who Created VeeFriends?

VeeFriends was created by Gary Vaynerchuk (GaryVee,) a serial entrepreneur and content pioneer. Vaynerchuk is the chairman of VaynerX, CEO of VaynerMedia, VaynerSports, and four-time New York Times bestselling author. He has an estimated net worth of $200 million. 

Gary was one of the first entrepreneurs to realize the potential of cryptocurrency and NFTs, first acknowledging the trend in 2014. He’s since launched VeeFriends and VaynerNFT, a project designed to help brands create their own NFT collections.  

VeeFriends was created by Gary to help pioneer the future of NFTs, with Gary stating that NFTs will change the way we interact online. 

VeeFriends Series 2 NFTs

VeeFriends Series 2 was released in April 2022 and included 55,555 tokens which originally sold for 0.33 ETH ($995.) Holders of Series 1 NFTs had the opportunity to claim a Series 2 for free, claiming the same character they already own. 

As the collection has more NFTs, GaryVee launched the collection at a lower price than the first to give more people opportunities to buy. The floor price for Series 1 is 5.96 ETH, pricing many investors out of the collection. 

The project was released in four mint periods throughout April:

Friends List (32,000 Supply) | 4/18/22

Series 1 Free Claim (10,255 Supply) | 4/18/22

Public Mint (10,000 Supply) | Date: 4/25/22

15 New Characters (3,300 Supply) | Date: 4/27/22

After release, many VeeFriends increased in value, for example, Adaptable Alien #13905, which sold for 42 ETH. This one-of-a-kind NFT featured an alien character with a Glitch Emerald background. 

How to Buy VeeFriends 

You can buy VeeFriends on several NFT platforms, including Bybit and OpenSea. 

To buy, open your platform of choice and connect your cryptocurrency wallet (MetaMask is a good option for this.) 

Make sure your wallet has the correct amount of ETH to complete the transaction and place a bid on an NFT or “Buy Now” to receive it instantly. Before you buy, check the transaction fees to ensure you have enough ETH to cover the whole transaction. 

Final Thoughts: Are VeeFriends A Good Investment?

Regarding utility, VeeFriends are one of the most valuable NFTs on the market. With each NFT, you’re guaranteed at least one benefit, from FaceTime calls with Gary himself to tickets to sports games. 

Series 1 of VeeFriends has continued to increase in value since its release, making them a good investment for all investors, even if they’re not interested in cashing in on their reward. Series 2 hasn’t seen the dramatic rise in value that the first collection had; nonetheless, the project has maintained its value and sold out, suggesting its value could increase in the future. 

However, VeeFriends aren’t necessarily for everyone. If having a chat with GaryVee isn’t your thing, other collections, such as CryptoPunks, offer great investments without the same utility. 

Over the next few years, NFTs with unused benefits will likely continue to rise in value as their number continues to decrease. Therefore holding an NFT with a redeemable reward may be a good investment. 

World of Women NFT Explained (Read Before Buying)

World of Women is an NFT project that Yam Karki created with 10,000 NFTs on OpenSea. The collection consists of 200 visual assets drawn by hand and aims to create a community that encourages women to explore Web3 and cryptocurrency. 

As of September 2022, World of Women has a sales volume of 72.7k ETH on OpenSea and has caught the attention of celebrities such as Steve Aoki (DJ, record producer,) FaZe Banks (Gamer, FaZe Clan,) and Dez Bryant (NFL free agent.)

Since selling out, the project continues to provide its owners with several unique benefits, including access to exclusive clubs, gala access, and much more. 

This article will cover what World of Women is, how it works, how you can buy, and the benefits of owning a World of Women NFT. 

What Is World of Women?

World of Women is an NFT project designed by Yam Karkai to empower women and increase their representation throughout Web3 and cryptocurrency. 

According to a recent ArtTactic report, women account for only 16% of the NFT market, showing how dominated the industry is by men. 

Karkai designed the project to show women the potential of Web3. The project quickly sold out after catching the attention of several influencers, including Tanya Sam, a tech investor and former Real Housewives of Atlanta castmate.

Each NFT originally sold for 0.07 ETH (around $225); however, the rarest NFTs are now selling for over 60 ETH ($80,304.60.)

In total, 10,000 unique illustrations were created by Karkai, who used Procreate and Adobe Photoshop for each design. Each NFT represents an individual woman and includes features such as hairstyle, lips color, and skin tone. 

How Does World of Women Work? Use, Royalties, and Licensing

World of Women NFTs have officially sold out; however, you can purchase them through OpenSea. You’ll need a cryptocurrency wallet and Ethereum to complete the transaction to buy. 

Once you own the NFT, you can use it for commercial use. NFT holders are allowed to collect royalties for the use of their images, receiving 50% of all profits from their commercial use. To earn royalties, owners must agree to World of Women licensing terms. 

Unlike many NFT projects that are used to make a profit, World of Women reinvests its profits to fund women-centered projects around the globe. It’s worked with projects such as Rockflower, Too Young to Wed, and She’s the First, helping support and protect women in areas with fewer opportunities and rights. 

Who Created World of Women?

World of Women was created by Yam Karkai, a digital illustrator who began her involvement in NFTs in 2021. She started as a lone artist and was attracted to the market as it allowed artists to get paid for their work instead of relying on third parties. 

Before creating World of Women, Karkai had focused on empowering women in her art, using vibrant colors and fine lines to create messages. She originally created an NFT project called Women by Yam – Females in the spotlight, which features hand-drawn women. Today, she manages the World of Women project and uses profits to support women worldwide. 

How to Buy World of Women NFTs

As of September 2022, you can only buy NFTs through OpenSea. To do so, head to the OpenSea website and search for World of Women. 

You can search based on Price, Listing Status (Buy Now or Make Offer,) and design features such as backgrounds, facial features, accessories, etc.

You’ll also have to pay a gas fee for each transaction, though OpenSea stated that this fee will be based on Ethereum blockchain traffic and vary from one transaction to the next. OpenSea also charges a 2.5% fee for every transaction on the platform. 

World of Women Utility

As a World of Women holder, you gain access to more than just digital art. 

Firstly, all holders have access to exclusive World of Women Artdrops, which are created by established artists within the community. These airdrops were released in several “Seasons” and come in several different themes, including: 

  • Night Realm
  • Golden Star 
  • Rainbow 
  • Orb

As of September 2022, eight seasons have been released, and Artdrops are currently on hold, with the project focusing on its community and DAO, DAWoW. 

As well as owning an original 800×800 pixel NFT, collectors are also given access to a 4000×4000 pixel file to be used for high-resolution prints, commercial use, or anything else the collector can think of. 

Owners with rare World of Women attributes, such as the Night Goddess skin tone, can participate in various clubs. For example, the Curators Club, where collectors can choose which artist to buy from using the NFTs fund. 

The second club is the Royalties Club, of which only 19 NFTs are eligible. Members of this club have access to a fund that generates profits from 50% of all secondary sales. This profit is then shared amongst members. 

The project team has also announced several future benefits for all NFT holders, though these benefits have not yet been disclosed. Rumors suggest they may include surprise airdrops and a metaverse version of NFTs in the Sandbox

Final Thoughts: What Does The Future Hold for World of Women?

World of Women remains an exciting NFT project with a good cause many investors support. It continues to support disadvantaged women worldwide, investing in charities and organizations that support women. But what’s next for the project?

In 2022, World of Women declared they will ” heavily invest in the metaverse” on their website and will receive $25 million from the Sandbox over the next five years. With this in mind, it’s likely we’ll see the project advance through metaverse initiatives. 

Outside of the Metaverse, the project team has stated they plan to continue supporting artists and funding projects with a women-centric focus, as well as educate members on the issues many women face to bring more awareness to their cause.

Can You Copy an NFT Onto a Different Blockchain?

Things can get a bit complicated when simply “copying” an NFT from one blockchain to another.

As a refresher, a blockchain is a decentralized collection of financial accounts across a peer-to-peer network. It’s used to confirm transactions without needing a central governing body, allowing users to make transactions without a third party. 

NFTs (non-fungible tokens) are unique cryptographic tokens that exist on a blockchain and cannot be replicated. They come in the form of NFT art, music, in-game collectibles, and much more. 

Although someone can duplicate an image of an NFT, the code confirms the actual ownership of an NFT. Think of NFTs like a piece of art in a museum. Although the art can be replicated, the museum holds the official ownership rights of the original piece. 

Currently, the NFT market is dominated by Ethereum, with 95% of NFTs being on the Ethereum blockchain. However, many collectors are fed up with high fees and slow transaction times on Ethereum. 

As a result, alternatives such as Solana and Polygon are now becoming popular alternatives for collectors, with investors using bridge technology to transfer their NFTs from one blockchain to another. 

This article will look at how NFT ownership works, how to transfer an NFT onto a different blockchain, and how to use the ​​Polygon Bridge to transfer your NFTs. 

How Does NFT Ownership Work?

When buying an NFT, you acquire a token on the blockchain. You might experience this NFT as a picture of a monkey or something, but in essence, you own a string of programming. This token is unique and represents a particular asset. For example, if you purchased an NFT on OpenSea, you’d own a code that shows you own that particular asset. 

Once you own an NFT, you can use it commercially, for example, printing the art on a shirt or using the design in a video. However, this doesn’t stop other users from saving your image, with saving an image becoming a meme since 2021. 

Not all NFTs give you copyright and intellectual property rights, so checking the details before buying is important. 

How Do NFT Transfers Work?

Originally an NFT would stay on the blockchain it was purchased on. However, a new technology known as a blockchain bridge lets you transfer an NFT from one blockchain to another. 

A blockchain bridge, also known simply as a bridge, is software that lets collectors move NFT across blockchains. These third-party programs actively monitor blockchains to ensure a smooth transaction. 

For example, one such platform, NFTrade lets you move NFTs from one blockchain to another, with six blockchain networks to choose from. 

To start, set up an account and connect your wallet. 

Click My NFTs and choose the NFT you want to move from one blockchain to another. 

On the top right corner of the NFT page, click the three dots and select the new wallet you want to send the NFT to. 

Click Transfer NFT and verify the transaction to complete. You can then disconnect your wallet from NFT trade, and the selected wallet will now own the NFT. 

Another way to transfer NFTs across blockchains is through the Polygon Bridge. 

What is the Polygon Bridge?

Polygon Bridge is a cross-chain bridge between Polygon (formally Matic) and Ethereum that lets users transfer NFTs from Ethereum to the Polygon blockchain. Users can transfer all ERC tokens through a dual consensus procedure using this two-way bridge. This procedure uses a Plasma bridge and Proof-of-Stake bridge to complete the transaction and remain decentralized. 

How Does The Polygon Bridge Work?

When using the Polygon Bridge, no new tokens are created. Instead, tokens leaving a particular network are locked and minted through another network. The new token is then created, and the old one is burned. 

Here’s how you can use the bridge:

  1. Connect your crypto wallet (such as MetaMask) to the Polygon Web Wallet
  1. Sign your wallet through the extension
  1. You’ll be taken to the Polygon Bridge interface. Here you can choose your token (supported tokens include MATIC, ETH, ERC20, ERC721, ERC1155, and several others.)
  1. You’ll be charged a fee for this process which will change based on Ethereum traffic.
  1. If you want to transfer your NFTs back to their old blockchain, click “Withdraw” and choose the tokens you want to return to their old blockchain. 
  1. Once the transaction has been validated, your NFTs will be available to claim in your crypto wallet. 

Alternatively, you can also use the Plasma Bridge to transfer Polygon NFTs and transfer them to ETH, ERC20, or ERC721 tokens. Here’s how:

  1. Open MetaMask and click “Switch to Polygon.”
  1. Your Polygon details will show the Polygon network’s details.
  1. From here, head to the Polygon Bridge, click “Withdraw,” and repeat the process above. 

Three transactions will need to be validated when completing a transfer on the Plasma Bridge. 

The first is to withdraw an NFT from your Polygon Wallet. 

The second starts a 7-day challenge period, where an individual can challenge the transaction (this is for additional security.)

The third is to confirm sending your NFT to the wallet. 

Overall this process is more secure; however not as fast as the normal Polygon Bridge. 

However, some NFT holders may be a bit unsettled by the fact that their original NFT token is “burned” in order to create a new one.

Why Would You Copy An NFT Onto A Different Blockchain?

Although Ethereum dominates the NFT market, it’s far from perfect. One of the biggest issues with Ethereum is the transaction fees. Fees are extremely high, starting at $50-100+ per transaction, which is significantly higher than any other blockchain. 

In addition to this, the fees themselves can fluctuate dramatically. One day you may pay $50 for a transaction; the next, you could be paying over $150. This frustrates NFT collectors trying to budget or profit from their investments. 

Alternative blockchains such as Solana and Polygon have significantly lower fees. For example, the average cost of Minting an NFT in Solana is just 0.00001 SOL ($0.01.) Consequently, Solana and Polygon NFTs are growing in popularity, as shown by the growth in sales. Solana NFT sales volume hit an all-time high in the week ending Sept. 12, hitting almost $50 million (1.5 million SOL.)

Final Thoughts: Is Changing Blockchain Worth The Hassle?

As blockchain technology advances, so will the number of ways you can move an NFT onto a different blockchain. Currently, platforms such as NFTrade and Polygon Bridge are great ways to change blockchain. However, they can appear a little complicated for new investors. 

So, is changing blockchain the best option for you?

This will depend entirely on your reason for buying an NFT.

Changing the blockchain may not be worth the hassle if you’ve purchased an NFT to hold it for the long term. Instead, holding your NFT in its current wallet would be better, and hoping the value increases. 

However, if you frequently trade NFTs, then changing blockchain could help save you some money on network fees. It would also help speed up your transactions, letting you make more daily transactions. 

Before making a decision, make sure you do your research to understand the transfer process and avoid unnecessary fees. 

How Permanent NFT Storage Can Prevent Disaster

A permanent NFT storage combines blockchains and InterPlanetary File System (IPFS) designed to create a secure place to hold NFTs. 

Throughout 2021 NFTs (non-fungible tokens) became popular assets, with projects such as Bored Ape Yacht Club (BAYC) and Cryptopunks making headlines for their large price tags. 

At the same time, NFT scams and theft also reached an all-time high, with over $100 million worth of NFTs stolen since July 2021. Due to the decentralized nature of cryptocurrency, most investors never had their NFTs returned and lost their investments. 

As the market continues to develop, new ways of protecting NFTs are being created. One such way is permanent NFT storage, which combines two leading storage methods to protect users from theft and scams. 

In this article, we’ll cover why it’s important to properly store NFTs, the different storage types, what is permanent NFT Storage and how it can save you from an investment disaster. 

Why Should You Properly Store NFTs?

With any piece of art, storage is extremely important. In the past, art collectors would pay upwards of $100,000 a month for their art to be secured. With NFTs, things are a little different. 

Some NFT platforms will allow you to store your NFTs inside their built-in wallets, while others will let you store NFTs in your external wallet, such as MetaMask. However, storing with a platform isn’t always safe. 

In March 2021, hackers stole thousands of assets from accounts held by Nifty Gateway. Although the company’s security wasn’t compromised, hackers used a lack of two-factor authentication to their advantage, using users’ credentials to steal assets. 

This made investors realize how important it is to use your own storage and not rely on third parties. Instead, NFT investors need to take full ownership of their assets. 

What Storage Types Are Available?

Online Storage

Currently, most NFT collectors store their NFTs using blockchain-based storage solutions such as MetaMask and OpenSea. These are completely decentralized and secure, giving owners full ownership of their assets. 

However, it’s important to note that these wallets don’t technically hold your NFTs. Instead, they provide you with a private key that gives you access to them on the blockchain. With this key, you own a cryptographic address and everything in it. 

Nonetheless, this storage method can still be hacked as it’s online 24/7.

Offline Solutions

Offline solutions are an extremely secure way to store NFTs. As they’re not connected to the internet, they’re less prone to cyber-attacks, digital scams, and unauthorized access. The most popular offline storage solution is a hardware wallet such as Trezor or Ledger. NFTs can be stored in these wallets offline and require an ID and password for extra security. 

The only downside is if you lose the physical wallet, you’ve lost your assets. 

What Is IPFS?

InterPlanetary File System (IPFS) is an open-source project created by Protocol labs. It’s used for storing and accessing websites, files, apps, and data; however, it has the potential to impact the way we store NFTs. Currently, IPFS works by breaking down data across different storage solutions, so if one should fail, the data will be backed up elsewhere. 

Platforms such as Pinata and Filecoin combine the benefits of blockchain storage with IPFS to create a permanent storage solution. This solution is designed so NFTs can’t be lost, even if the marketplace where they are stored goes down. 

It removes all external dependencies while providing decentralized storage solutions for NFTs. But, the technology still has some flaws. If an NFT has been sold independently (outside of a platform) and the owner chooses to stop providing the NFT data, the NFT will disappear. 

However, on-chain solutions are being designed to fix this problem. Marketplaces such as Pastel are implementing native storage solutions where assets will always be fully recoverable. Pastel Network uses its Cascade protocol for this, helping recover all NFT data if anything is ever lost. It breaks up NFT data into chunks and distributes it amongst a network of SuperNodes. This means if any nodes go down, NFTs are always recoverable. 

Why Permanent Storage Is Important

As NFT sales continue to grow, a secure way for everyday investors to store their assets is essential. In the current market, NFTs are continuously missing, with scams rising. 

In November and December 2021 alone, over $30 million in NFTs had been lost due to rug pulls and scams. For the market to continue to thrive, users need peace of mind that their assets aren’t going to go missing. If scams continue to increase, the NFT market will have difficulty attracting new investors, significantly slowing the widespread adoption of these digital assets. 

Permanent storage solutions provide investors with a much better storage solution than any available on the market. One where data is broken down across nodes to prevent theft and scams. 

Final Thoughts: Is Permanent Storage The Future For NFTs?

Although IPFS technically isn’t designed solely for NFTs, it’s being integrated by projects like Pinata to provide users with a security solution that’s easy to use and completely safe from digital threats. 

As the technology continues to develop, it’s fair to assume that permanent storage solutions, or similar technology, will be the future of NFT storage should widespread adoption occur. 

Despite still being an early development, permanent storage gives investors peace of mind that their assets are completely safe, even if there’s an issue with nodes. In the current market, no other storage solutions provide this level of safety, making it a no-brainer for NFT collectors worldwide.