There are two main challenges of the fast growing NFT market: the lack of reliable storage for the data referenced by the non-fungible token and high gas fees (transaction fees). We wrote about it earlier. Let’s see, what solution can help to solve these challenges.
Structure of NFT
In most cases, NFT is a record in the blockchain + metadata + media
Moreover, metadata and media are usually stored outside the blockchain — in centralized databases for metadata and regular hosting for media.
But why do we use NFT, if access to its content is stored the same as any other non-NFT data? In this case it only fixes the fact of ownership and nothing more.
For example, when you buy an NFT on the Ethereum blockchain, you get a smart contract and the metadata themselves attached to the object. A smart contract is located and executed on the blockchain, but everything else is most often stored on a centralized platform. If it fails the “uniqueness” of the NFT and, in fact, the entire value of the token will be completely lost.
To go further, you need to store metadata and media in the same reliable and secure way as NFT attribution. And there is a dilemma - storing metadata in the blockchain is very expensive and extremely inconvenient, but storing it outside the blockchain is unsafe.
Therefore NFT holders need a separate decentralized and reliable network to store metadata and media, that will securely link information about the owner of the NFT on the blockchain with metadata and media in its distributed storage.
Scheme of an NFT storage solution
Let’s make a glimpse on how should solution for storing all attributes of NFT look like.
NFT on the blockchain ←→ metadata and media storage network
Moreover, to further specialize networks and increase access speed, this scheme can include a separate store for metadata and a separate store for media.
NFT on the blockchain ←→ metadata network ←→ storage network
Obviously, the specifics of this system, the interaction scheme and other technical details should not concern the user. He just needs to be sure that all the attributes of his NFT are stored in a reliable and secure way, having only superficial understanding of him.
What characteristics should NFT storage have from the user's point of view?
Convenient user interface. The repository should be intuitive and easily customizable.
Support multiple devices. NFT storage should run on all major desktop operating systems and also support mobile devices.
Speed and cross-chain compatibility. The gas fees on the Ethereum network have reached such heights, and the transaction processing speed is so low that the NFT market on such a platform will hardly become widespread. Therefore, an ideal storage for NFTs should support at least second-level blockchains (Polygon, Binance Smart Chain). Ideally, it will support several alternative first-level blockchains, such as Cardano, Polkadot, Tezos, Zilliqa.
DeNet NFT Storage
The DeNet solution relies on the Polygon (ex-Matic) layer 2 network for payments, NFT transaction acceleration, and DeNet Storage, a high-speed decentralized data warehouse that stores metadata and media for NFTs. The scheme of the wallet with storage for NFT looks like this:
NFT on Polygon, Ethereum, BSC, Kovan ←→ metadata and media in DeNet
At the same time, the information in the storage is securely protected by cryptographic evidence stored in the blockchain. This ensures that no one except the NFT owner can access the metadata and media associated with the token.
To put this principle into practice in third-party applications, developers can use the DeNet Storage API. Moreover, the DeNet team plans to introduce the NFT storage function in the network's user application.
Conclusion
Proposed solution for NFT data storage using DeNet Storage possesses all the necessary characteristics to become mainstream.
The NFT Storage software can run on any platform based on existing open source software.
The use of any EVM-compatible blockchain connected with its own high-speed network makes the DeNet solution easily scalable, and the NFT transactions fast and cost almost nothing.
DeNet smart contracts can be transferred to any other network that supports EVM (Ethereum Virtual Machine). It can be Avalanche, Arbitrum, Solana, or one of Polkadot's EVM compatible parachains like Moonbeam. This opportunity opens the horizons of creating cross-chain NFT exchange, which data is securely stored in the DeNet decentralized storage.
Why popular decentralized applications work on several networks and the advantages of these blockchains, read in the previous article.
