What are on-chain NFTS & off-chain NFTS?

On-chain NFTs refer to tokens written solely on the blockchain, with all metadata and smart contracts being stored on-chain. On the other hand, off-chain NFTs store their smart contracts on the blockchain, though their media is stored off-chain. Both methods have their pros and cons, though on-chain NFTs are the trending option in the industry.

Can NFTS be stored on a blockchain?

Many NFTs are image based. But storing a whole image on a blockchain (or “on chain”) would be quite expensive as the fees are based on the amount of data which will be stored. So most of the time another project called IPFS is used to store the image (s) of a NFT. IPFS, in a nutshell, is another blockchain but for big files.

What are NFTS & how do they work?

They are the building blocks of decentralized applications (dapps), including most NFTs. The rules for minting and exchanging NFTs live in smart contracts. Storing an NFT on-chain means that the entire NFT—the image and all its metadata—exist on a blockchain.

Is NFT a cryptocurrency?

At a very high level, most NFTs are part of the Ethereum blockchain, though other blockchains have implemented their own version of NFTs. Ethereum is a cryptocurrency, like bitcoin or dogecoin, but its blockchain also keeps track of who’s holding and trading NFTs. How do you pronounce NFT? Almost everyone spells it out, saying “en eff tee.”