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NFTs and Metaverse

Elon Musk Urges Secure NFT Storage on Blockchain for Lasting Art

Elon Musk Urges Secure NFT Storage on Blockchain for Lasting Art

Elon Musk recently raised concerns regarding certain NFT projects that do not entirely store their assets on the blockchain during an appearance on Joe Rogan's podcast.

Musk highlighted that some NFTs merely act as a link to a JPEG rather than housing the actual artwork on the blockchain itself. He suggested that it would be more secure to encode the complete artwork within the blockchain.

This would safeguard against potential loss in case the hosting company goes out of business, as the image would remain accessible.

The risks associated with this approach were evidenced in the Coachella NFT incident. When FTX.US collapsed, $1.5 million worth of NFTs sold by Coachella became inaccessible, leaving purchasers with nothing due to the broken link.

Nevertheless, Musk’s concerns do not apply universally to all NFT projects. Certain projects, such as CryptoPunks, CyberBrokers, and Bitcoin Ordinals, ensure complete storage of artwork on the blockchain.

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Storing the artwork on-chain guarantees its perpetual accessibility for as long as the blockchain endures.

Bitcoin Ordinals, for instance, directly embed inscriptions of text or images on the Bitcoin blockchain, making them both permanent and unchangeable. Advocates argue that Ordinals represent a more resilient model, aligning with Musk’s advocated approach for safeguarding NFT assets.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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