How Does NFT Storage Work?


Ajay Shetty

All things NFTs!


Mar 6, 2023

What's the big deal about NFTs? Why are NFTs so popular and in demand? The answer is simple: rarity and exclusivity.

NFTs are a new type of digital asset that can represent any data. They are like traditional BLOCKCHAIN assets. They use a novel distributed storage architecture. This allows them to be traded, transferred, and shared.

You can store NFTs in a distributed fashion on a network of computers. It makes it easier for people to share and manage them.

NTFs or "Non-Fungible Tokens" are a new way of storing data. This data solves some problems that have been associated with traditional databases. They are digital tokens. They can be traded, used and transferred like any other asset. This makes them ideal for use in a range of applications. This includes gaming, business and financial services.

NFT can store anything: from digital assets to game items to artwork. Users can keep them stored off-chain. They can be sure that their data is secure.

In this blog post, we'll be looking at NFT storage and the pros and cons associated with it.

What Are NFTs, And How Do They Work?

BLOCKCHAIN TECHNOLOGY continues to grow in popularity. So does the discussion around its potential uses and applications. One of the popular applications of BLOCKCHAIN TECHNOLOGY is the creation of NFTs.

In a world where everything is easy to replicate, there's an overabundance of products. NFTs are most commonly used as digital collectables, such as Crypto Kitties. They work by storing data on the BLOCKCHAIN that represents the unique features of each token. This data can include anything from a unique ID to a photo or piece of art. When you own an NFT, you hold exclusive rights to that data. We can also use NTFs for other purposes, such as digital assets or identification.

NFTs are unique digital collectables and one-of-a-kind. They are non-fungible. This means that they are non-interchangeable.

Let's take an example. Our fiat currency is fungible. One rupee in your pocket is one rupee in the other's pocket. There is nothing unique about the asset with you or anyone else. But with NFTs, the NFT you have is not equal to or cannot be traded with NFT, someone else has. This means that every NFT is exclusive to its owner. Exclusivity is a valuable commodity. This exclusivity is driving its value. It is making them so popular among collectors. That's why NFT's are worth so much!

What Are The Benefits Of NFTs

NFTs offer several key benefits - they are unique. This makes them attractive to collectors and investors who want to hold an asset.

- NFTs can represent real-world assets, such as collectable data sets, works of art, or even digital game items. This opens up new possibilities for CROWDFUNDING and the exchange of digital assets.

- NFTs are stored on BLOCKCHAIN LEDGERS, making them secure and tamper-proof. This makes them ideal for storing valuable assets or data.

-The ownership of NFT is secured by a BLOCKCHAIN. This comes with the opportunity to learn more about BLOCKCHAIN.

-Transferability- NFTs can be traded easily and freely in certain markets, with many options available for trading.

-It boosts inclusive growth-NFTs bring together content creators from all fields in a single ecosystem. It facilitates a new growth avenue for all participants.

How Are NTFs Created?

The token is registered in a BLOCKCHAIN and can be verified as unique. So far, the most popular use of NTFs is in digital gaming worlds, where players can earn and collect rare assets. But the potential benefits are endless, and we're excited to see what comes next.

NFTs are created by taking an existing asset. It can be a picture, video, or piece of text. You can then turn it into a unique digital token on a BLOCKCHAIN.

A user can do this by using a variety of methods. One of the most popular is called "enabling."

In this process, someone takes an asset and creates a smart contract. This allows others to generate unique tokens that represent that asset. For example, someone could make a contract to enable others to create tokens. These tokens represent pieces of art from a particular artist. Once the contract is formed, anyone could generate a token that represents a specific work by that artist.

How Are NFTs Stored?

There are three methods for storing NFTs.

Software wallets

Your software wallet stores your NFTs. Unlike a traditional bank account, your software wallet doesn't have a physical location. Instead, it's a digital file that lives on your computer or phone.

It is very safe. It would be best if you kept your software wallet password secure. No one can access your NTFs without your permission.

IPFS (Inter Planetary File System)

NFTs (non-fungible tokens) are stored on the BLOCKCHAIN. There is a lot of debate about where they should be stored long-term. Some people argue that one can keep them on IPFS (Inter Planetary File System). It is a peer-to-peer hypermedia protocol that allows for permanent file storage.

IPFS has many advantages over other storage options. It is DECENTRALISED and TAMPER-PROOF. It is also very secure, thanks to its cryptographic hashing.

IPFS is still in development and has yet to be proven. Some people are concerned about the long-term viability of IPFS. Other storage options include centralised services. These are ETHEREUM SWARM and STORJ. The DECENTRALISED services are SWARM and STORJ.

Hardware Wallets

Hardware wallets are physical devices that store your NFTs offline. They're like USB drives. The exception is that they have special security features that make them ideal for storing digital assets. They are more secure than online wallets, but they're also effortless.

You need to download the relevant app and follow the on-screen instructions. Plus, most hardware wallets come with a backup feature, so you can rest assured that your assets are always safe and sound.

How Safe Are NFTs?

That's a great question! Yes, NFTs are safe. The safety of a particular NFT storage system depends on various factors. These factors are specific to that system. NFT storage systems that use cryptography to secure data are safer than traditional file storage systems.

Modern NFT storage systems typically employ redundant and failover mechanisms. It is done in case of server or data CENTRE failure. At Arcana, we are building a DECENTRALISED storage system to support the secure storage of NFTs. You can be confident that your data will be safe even if one or more of your NFT storage systems fail.

How To Store NFTs Safely?

There are a few ways to store NFTs:


The most popular way to store NFTs is on a private BLOCKCHAIN. A private blockchain is a BLOCKCHAIN that a specific group of people controls. It is not open to the public. This allows the creators of the NFTs to have more control over their tokens.

Private BLOCKCHAINS are becoming more popular for storing NFTs because they are secure and easy to use.

Use a custodian

One way to store your NFTs is through a custodian. A custodian is a third-party that holds your tokens on your behalf. This can be helpful if you don't feel comfortable holding onto your tokens yourself. This is also nice if you don't have the technical know-how.

Custodians can also help with transactions, and other actions related to your tokens. When selecting a custodian, be sure to do your research. Choose one that is reputable and has a good track record.

Use A Vault

Another option is to use a CRYPTOCURRENCY vault. These services store your NFTs in a secure location and offer insurance in case of theft or loss. Vaults can be helpful for long-term storage. It provides peace of mind. It avoids the risk of losing your assets if an exchange goes bankrupt or is hacked.

How Does NFT Storage Work?

NFTs are valuable items that need to be stored safely. There are a few different ways to store them, and each has its benefits and drawbacks. Use the storage solution that best meets your needs and be sure to research any potential scams before you invest in any NFTs.

BLOCKCHAIN technology permits the mapping of currency in the digital realm. It led to the establishment of a variety of fungible cryptocurrencies. It caused a recent increase in CRYPTOCURRENCY investment. On the other hand, the emergence of non-fungible tokens (NFT) allows us to imagine the possibility of mapping the entire real world.

Apart from currency, most real-world objects are one-of-a-kind, with distinct qualities and values. NFT properties can precisely adapt to this situation and enable the tokenization of various items in the digital world.

NFT maps the actual world into the digital realm, creating the long-awaited Utopia–the METAVERSE–by exploiting blockchains, tamper-proof, open and transparent, and traceable properties.

However, because of technical restrictions, NFT could not realise the concept mentioned above fully. The metadata and media data of NFT are not saved on the BLOCKCHAIN due to congested communications, limited scalability, high gas expenses, and other factors. This data component is not dependable without protecting blockchain technology, implying that the current NFT has not yet reached the same level of trustworthiness as BITCOIN.


Non-fungible tokens, or NTFs, are the newest development in crypto. They differ from traditional cryptocurrencies in that they are not interchangeable and are unique to the owner.

Anything can be an NFT as long as it's unique. That could be a virtual item like a video game or a real-world object like a house or car. The sky's the limit!

If you're thinking of investing in NTFs, you'll need to find a storage solution. CRYPTOCURRENCY exchanges offer storage services. It is essential to do your research before entrusting your assets to anyone. Make sure you find a reputable business that has a good security record.

Which storage methods appeal to you the most? Do check out Arcana as we are building something exciting!

Mar 5, 2024
All things NFTs!


Ronak Kadhi

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Copyright © Arcana Technologies Ltd. All rights reserved.

Schedule a Demo

The call is completely free and no commitment is required.

Copyright © Arcana Technologies Ltd. All rights reserved.

Schedule a Demo

The call is completely free and no commitment is required.

Schedule a Demo

The call is completely free and no commitment is required.

Schedule a Demo

The call is completely free and

no commitment is required.