Arweave: The Ultimate Solution for NFT on-chain Storage

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Author: Spike @ Contributor of PermaDAO

Translator: Spike @ Contributor of PermaDAO

Reviewer: Kyle @ Contributor of PermaDAO

  1. There are actually two steps to on-chain NFTs. The first step is to write the metadata information and the issuer into the blockchain block in the form of smart contracts, but there are generally three options for actual material storage: Decentralized storage service providers such as IPFS/ Arweave, centralized storage providers such as Amazon cloud, and the third is on-chain storage such as Bitcoin and Ethereum.
  2. NFT projects reject on-chain storage for the following three reasons: first, on-chain storage is too expensive; The second is that on-chain storage is inefficient to read and is not friendly to ordinary users. The third is that AR and other service providers are still not accepted by the market.
  3. At present, there are two mainstream on-chain storage solutions, one is ordinals protocol on Bitcoin, which stores NFT data, and the other is a lot of ERC protocols on Ethereum, such as ERC-721, ERC-1155, and a dedicated data storage solution EthStorage.
  4. Another obstacle to on-chain NFT assets is the capacity constraints of Bitcoin and Ethereum, ordinals can write up to 4MB of data. Ethereum is also difficult to support cheap large-scale use of audio and video. IPFS, Arweave and other networks do not have capacity constraints. Arweave, in particular, has an incentive mechanism for miners to store audio and video.
  5. In addition, Arweave also provides a real more than on-chain NFT storage solution - Atomic asset, which can also perform complex editing, transfer, and cutting operations while retaining the characteristics of on-chain storage.
  6. At present, there is also a problem of low market recognition of atomic assets on Arweave. The main reason is that the Bitcoin and Ethereum communities are worried about using Arweave for storage, and whether they can answer the legitimacy question of on-chain storage instead of on-chain storage.
  7. In view of the current situation of low acceptance of Arweave by other ecosystems, with the support of Arweave ecosystem, BazAR, an NFT trading market based on the content capitalization on Arweave chain, has been launched, which can integrate the underlying technologies such as $U and UDL.
  8. Arweave's atomic asset feature, in fact, contains the ability to further promote to any Token. It is fully possible to integrate real assets and external chain assets into Arweave and use it as a unified RWA (real asset on-chain).
  9. Atomic assets on Arweave originate from solving the problem of Fully on-chain of NFT, but in the process, it gradually deeps into how to rewrite the creator economy from the underlying principle. The existing creator economy, especially the hype of NFT focusing on PFP images, After Auzuki has fallen into a dead end, and the activation of more creators to join is the main theme of the competition in the next era.
  10. In a word, Musk's discussion on NFT chain proves that NFT has been concerned by the mainstream vision, but since then, Arweave's many solutions have not been paid equal attention, especially the empowerment of atomic assets to the creator economy.

Foreword

Recently, Musk unexpectedly mentioned NFT when he was a guest on a podcast. Unlike ordinary people, Musk pointed out the biggest problem of NFT from the technical aspect - most of the material is not stored on the chain.

In a dark sense of humor, the long-dormant NFT market has come alive again since Azuki, with ordinals on Bitcoin and atomic asset features on Arweave all joining the conversation.