{"id":36,"date":"2021-05-10T10:05:55","date_gmt":"2021-05-10T10:05:55","guid":{"rendered":"https:\/\/realm10.com\/?p=36"},"modified":"2021-05-19T08:12:19","modified_gmt":"2021-05-19T08:12:19","slug":"nfts-ownership-issues","status":"publish","type":"post","link":"https:\/\/realm10.com\/nft\/nfts-ownership-issues\/","title":{"rendered":"Do you really own your NFTs? The key challenges to address"},"content":{"rendered":"\n

As NFT craze blinds the minds of many investors and startups, there\u2019s hardly anyone who thinks about the pitfalls that may expect them on the way. <\/p>\n\n\n\n

And the truth is it\u2019s not all pixelated sunshine and rainbows. The pitfalls are aplenty with true ownership being one of the most important questions. <\/p>\n\n\n\n

Be warned NFT-padawan, if you have bought some digital art in the form of a non-fungible token to fulfill your collection, this token doesn\u2019t necessarily belong to you. <\/p>\n\n\n\n

In this article, we are going to review some dangers associated with NFT ownership and give some advice on what investors can do about them.<\/p>\n\n\n\n

URLs are still centralized<\/h2>\n\n\n\n

Registering assets in a decentralized manner is a great step towards their security. However, since all operations with NFTs take place online, there\u2019s no way to fully avoid centralization as all websites are seated on domains that are centralized by nature. <\/p>\n\n\n\n

The links to the assets, the files themselves, NFT marketplaces – all of them reside on some websites with a single point of control.<\/p>\n\n\n\n

Do you see where we\u2019re going with this?<\/p>\n\n\n\n

If the owners of these websites ever go out of business or simply forget to renew their subscription at GoDaddy or wherever they have purchased their URLs, you won\u2019t be able to access your asset.<\/p>\n\n\n\n

Can blockchain be a solution? <\/p>\n\n\n\n

Sure, it can, and there are even some blockchain-based projects such as PeerName<\/a> that allow their users to register domain names in a completely decentralized form. But their popularity is still too low to talk about any significant changes.<\/p>\n\n\n\n

Where is the asset stored?<\/h2>\n\n\n\n

The next question to answer is related to the place where assets are stored.<\/p>\n\n\n\n

Remember a musician 3LAU who has recently sold an NFT album<\/a> for $11 million on NiftyGateway? This was exactly one of those big headlines mentioned at the beginning of the article. <\/p>\n\n\n\n

Well, in only 2 weeks since that notable event the album itself was reported to be missing:<\/p>\n\n\n\n

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DAY 6 (144 hrs)

Random @IPFS<\/a> file audit update of @niftygateway<\/a> NFTs

\ud83d\udd34 Failed to load at all for @3lau<\/a> @ozuna<\/a> @grimezsz<\/a> @troubleandrew<\/a> @RAC<\/a> @fewocious<\/a>
\ud83d\udfe0 Loading partially for @steveaoki<\/a> @deadmau5<\/a> @SSX3LAU<\/a> @toomuchlag_<\/a>
\ud83d\udfe2 100% loaded for @trevorjonesart<\/a> @mariussperlich<\/a> https:\/\/t.co\/oWYkMcXzsb<\/a><\/p>— Check My NFT \ud83d\udd0e \ud83d\uddbc\ufe0f (@CheckMyNFT) March 16, 2021<\/a><\/blockquote>