NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: LINK Price Climbs Following Chainlink's Deal With US Commerce Department, Eyes $30
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: LINK Price Climbs Following Chainlink's Deal With US Commerce Department, Eyes $30

Software Engineer Warns NFTs are Built on a “House of Cards”

Samuel Wan
Samuel Wan
4 years ago
3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Non-fungible tokens (NFTs) are digital assets that represent a range of unique real-world and intangible things. In recent times, digital NFT artwork has really taken off, thanks mostly to a string of high-profile sales.

The main selling point of NFTs is their scarcity. An implied benefit is that they will exist forever on the blockchain. However, research conducted by Jonty Wareing shows this may not be the case.

Wareing examined the blockchain data of two well-known NFTs and discovered they consist of either a URL address or IPFS hash. In other words, the existence of those NFTs depends on the marketplace seller staying in business.

“Short version: The NFT token you bought either points to a URL on the internet, or an IPFS hash. In most circumstances it references an IPFS gateway on the internet run by the startup you bought the NFT from. Oh, and that URL is not the media. That URL is a JSON metadata file.”

NFTs Built on Shaky Foundations

In the first instance, Wareing referred to a piece called CROSSROAD by Beeple via the Nifty Gateway marketplace.

It was a first for Nifty in that the NFT would change depending on the outcome of the U.S. election. CROSSROADS sold for $6.6mn in February this year.

CROSSROADS NFTs by Beeple

Source: niftygateway.com

Wareing noted that the NFT token for CROSSROADS is a JSON file hosted on Nifty Gateway servers. He stated that if Nifty Gateway stopped trading, CROSSROADS would also cease to exist. He concluded the piece would be worthless if that were to happen.

“THAT file refers to the actual media you just “bought”. Which in this case is hosted via a @cloudinary CDN, served by Nifty’s servers again. So if Nifty goes bust, your token is now worthless. It refers to nothing. This can’t be changed.”

Similarly, an examination of Beeple’s THE FIRST 5000 DAYS refers to an IFPS hash. In turn, this refers to a JSON metadata file referencing an IFPS gateway from NFT marketplace Makersplace.

Wareing’s View on NFTs

Both CROSSROADS and THE FIRST 5000 DAYS will exist as long as each marketplace seller stays in business. But there remains a nagging doubt that both Nifty Gateway and Makersplace will go out of business one day.

Wareing called this situation a “house of cards” and predicts every NFT sold will be “broken” within the next ten years. However, he stressed that this is not the case for every NFT in existence.

“In short: Right now NFT’s are built on an absolute house of cards constructed by the people selling them. It is likely that _every_ NFT sold so far will be broken within a decade. Will that make them worthless? Hard to say.”

Software Engineer at Consenys, Sam Walker, agreed with Wareing’s assessment and thanked him for bringing the problem to light. Walker said he would use this information to improve tooling around IPFS and NFTs.

NFTs: Ethereum daily chart

Source: ETHUSD on TradingView.com
Tweet123Share196ShareSend
Samuel Wan
Samuel Wan

Samuel Wan

Samuel Wan is passionate about different cultures and eating good food. He has years of experience working in business and finance — a burgeoning interest in Bitcoin and cryptocurrencies since 2017. UK based.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

stellar xlm xlmusd

XLM Battles $0.45 Resistance Again: Is This the Breakout That Finally Sparks a Run to $1?

Stellar (XLM) has made its fourth attempt since June to break the $0.45 resistance, though it now trades at $0.36...

James Halver 2 hours ago
Ethereum Demand Stays Strong As Exchange Reserves Keep Falling – Details

Ethereum Demand Stays Strong As Exchange Reserves Keep Falling – Details

Ethereum (ETH) is currently trading above the $4,400 level, showing resilience despite recent selling pressure and market-wide volatility. However, price...

Sebastian Villafuerte 3 hours ago
Bitcoin

Is The Bitcoin Price Bottom In? Here’s What Social Sentiment Says

On-chain analytics platform Santiment has weighed in on whether the Bitcoin price has reached its bottom, following its drop to...

Scott Matherson 4 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

dogecoin-resistance-ema-hashrate-record

Dogecoin : test de la résistance EMA à 0,22 $ et un hashrate en plein record

guillaumev 1 hour ago
Analist waarschuwt: XRP ETF's kunnen mislukken - Wall Street reuzen blijven weg

Analist waarschuwt: XRP ETF’s kunnen mislukken – Wall Street reuzen blijven weg

Lars Diederiksen 2 hours ago

Chainlink: Πού κατευθύνεται η τιμή μετά την εντυπωσιακή άνοδο;

Ιωάννης Ριζόπουλος 2 hours ago

Premium Sponsors

Press Releases

  • Următorul Meme Coin de 100× în Presale? PEPENODE ar putea eclipsa Pepe în 2025

    Următorul Meme Coin de 100× în Presale? PEPENODE ar...

    12 minutes ago
  • Arthur Hayes dezvăluie 3 altcoinuri cu potențial de 100× până în 2028

    Arthur Hayes dezvăluie 3 altcoinuri cu potențial de 100×...

    20 minutes ago
  • Earn 1,000 XRP Daily? Rich Miner Cloud Mining Enables...

    2 hours ago
  • ドージコイン 今後の価格予測:DOGEのゴッドキャンドルが間もなく出現か – 1ドル未満の最後のチャンス?

    ドージコイン...

    2 hours ago
  • ETF承認でXRPは7ドルに到達か?アナリストが見るリップル 今後の4ドルと7ドルの価格予測

    ...

    2 hours ago

Newsletter

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.