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Genaro Network: Data Storage for NFTs
When we talk about physical assets (e.g. gold or real estate), the proof of their existence is supported by the immutable laws of physics. There has never been a risk of physical assets suddenly disappearing into thin air. But when it comes to NFTs, the situation may become complex and unpredictable due to their storage methods.
The Nuances of NFTs
Traditional ownership models are governed by the laws of physics, which guarantees that the gold or house that someone buys will never disappear. However, new ownership methods are now emerging in the digital space, and they present a whole new challenge for digital asset storage and ownership. By using blockchain technology, digital assets can exhibit the characteristic of scarcity. This also opens up many new opportunities when it comes to their ownership.
NFT is a growing asset class of significant prominence, which means that we need to examine the nuances in NFT investments now more than ever. While this emerging market can offer lucrative returns, we still need to be wary of some of the unknown risks in investing in NFTs.
The Importance of NFT Data
The core value of NFT is what it represents, such as the ownership of artwork, .eth domain names, etc. If the asset that the NFT represents ends up disappearing from the web, the NFT will lose its value as well. This is not a recent phenomenon, and many NFT projects are vulnerable to such a risk. Therefore, this article will provide you with information regarding the secure storage of NFT data.
How NFT Data is Stored
Each platform uses the most logical path to store NFT data. Two different forms of data storage are currently available in the market:
• Centralized
• Decentralized
Blockchain is a decentralized ledger technology powered by cryptography, and opens up a whole new world for the existence of digital assets. NFTs are slightly different than most cryptocurrencies in the market in terms of storage methods.
Decentralized Data Storage Solutions
Blockchain has unleashed a culture of innovation, and talents globally are working on different applications and projects with significant breakthroughs when it comes to distributed storage solutions. NFT is still a relatively new concept, and it symbolizes the beginning of a brand-new industry. Inventions are necessitated by demand, and as the market demand for NFT continues to grow, we believe that newer and more scalable storage solutions will emerge. The best example of such a solution is Genaro Network.
Genaro Network is a high-performance blockchain network with a proof-of-stake (PoS) and sentinel proof-of-retrievability (SPoR) hybrid consensus mechanism that is building a decentralized storage network for the Web 3.0 era. Its original hybrid consensus mechanism makes it easy for NFT metadata to be stored in a decentralized manner, and the project aims to build a decentralized cloud storage ecosystem that values data privacy and ownership.
