When buying NFTs, we all feel like "this thing is now mine." But to be honest, many people might not fully understand what they are actually purchasing. Let me explain with the simplest example—what technologies like Walrus are solving is precisely this problem.
You might think you've bought a piece of digital art, but in reality, you probably just hold a "trustworthy key."
Here's the scenario: you buy a 3D virtual avatar on an NFT trading platform for a hefty price. The transaction completes, it enters your wallet, and you think you've finally got a digital asset.
But here's the key—your NFT in your wallet is essentially two things combined: a "receipt" and a "URL." Where does this URL point to? Usually, it points to the project's own server or a centralized storage service like Amazon AWS.
Sounds harmless? Not quite. The "lifeline" of your asset is entirely in someone else's hands:
- If the project runs out of money to renew the server? The URL breaks. - If the project team disbands or runs off with the funds? The URL breaks. - If the storage service provider experiences downtime or goes bankrupt? The URL breaks.
Once the link is broken, your NFT becomes worthless paper—it can still prove you once owned something, but that thing no longer exists. That’s why solutions like decentralized storage are worth serious consideration for all Web3 participants.
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LiquidationOracle
· 01-09 10:49
Nima has already said this before, everyone who buys NFTs are just bagholders.
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CompoundPersonality
· 01-09 10:43
Damn, that's how I got cut before.
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MetaMasked
· 01-09 10:42
Wow, the truth is revealed. I shudder just thinking about the avatars I bought before.
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HodlTheDoor
· 01-09 10:38
I've said it before, most NFTs are just empty shells.
When buying NFTs, we all feel like "this thing is now mine." But to be honest, many people might not fully understand what they are actually purchasing. Let me explain with the simplest example—what technologies like Walrus are solving is precisely this problem.
You might think you've bought a piece of digital art, but in reality, you probably just hold a "trustworthy key."
Here's the scenario: you buy a 3D virtual avatar on an NFT trading platform for a hefty price. The transaction completes, it enters your wallet, and you think you've finally got a digital asset.
But here's the key—your NFT in your wallet is essentially two things combined: a "receipt" and a "URL." Where does this URL point to? Usually, it points to the project's own server or a centralized storage service like Amazon AWS.
Sounds harmless? Not quite. The "lifeline" of your asset is entirely in someone else's hands:
- If the project runs out of money to renew the server? The URL breaks.
- If the project team disbands or runs off with the funds? The URL breaks.
- If the storage service provider experiences downtime or goes bankrupt? The URL breaks.
Once the link is broken, your NFT becomes worthless paper—it can still prove you once owned something, but that thing no longer exists. That’s why solutions like decentralized storage are worth serious consideration for all Web3 participants.