Arcana Network now supports private NFTs, along with its decentralized Privacy and Storage Stack for dApp developers. Creators can now sell their artwork with added privacy and exclusivity through private NFTs. Although both traditional and private NFTs are based on the ERC-721 tokens, there are some fundamental differences that make private NFTs an interesting use case for the creator ecosystem at large. Read on as we delve deeper into private NFTs, how they differ from traditional, public NFTs, and how we at Arcana facilitate private NFTs.
What are Private NFTs?
Private NFTs, in essence, are known for offering key privileges such as the option to encrypt the underlying asset and make it private, which is not the case with public NFTs. When it comes to public NFTs, starting from the ownership to the underlying asset, everything can be publicly verifiable.
When it comes to the private NFTs that Arcana supports, you can encrypt the underlying asset and make it private. The ownership details and transactions will still be publicly verifiable, as they will reside on Ethereum or Polygon. That said, validation of ownership and fungibility of the encrypted asset will take place, but not in a publicly verifiable manner.
So how do private NFTs minted on Arcana make the aforementioned things possible? Here’s how:
In private NFTs that have their underlying asset stored on Arcana, basic information such as name, description, and thumbnail, will be publicly available. The underlying asset, however, will be encrypted and cannot be publicly viewed or verified. To sum it up, the private NFTs minted through our blockchain facilitate private ownership of assets and transfer of assets without opening them up for public verifiability.
Identity and Access Control
Creators of a private NFT get to choose who can access the underlying asset. In cases where the asset could be a high-definition audio file or a high-resolution image, creators may want to keep the underlying asset private and only accessible when purchased. For instance, a low-definition thumbnail of the original asset can be made publicly available, with the buyers of the private NFT getting full access to the underlying asset.
Private vs Public NFTs
Before we dive into the differences between private and public NFTs, let us first review what the similarities are.
- Non-fungible: Both private and public NFTs are non-fungible in nature, meaning that they are a unique part of a whole, non-divisible, and clearly distinguishable.
- Public metadata: Both public and private NFTs have publicly available metadata that can be viewed by anyone on-chain.
- Transaction records: Various transactions that take place for a particular NFT on a blockchain are tracked and made visible to everyone on the blockchain.
Coming to the differences, private NFTs tend to support private metadata, private ownership, and access control, when compared to public NFTs. Any NFT built on Ethereum, BNC, or Solana cannot have private metadata, ownership, or access control. It is worth noting that the NFTs that store the underlying asset on Arcana have private ownership (since the underlying asset can be encrypted); but these private NFTs do not support private metadata yet.
And lastly, access control–in private NFTs, only selective individuals (owners) can view the file.
So how is a private NFT implemented on our chain? Find out below.
How Arcana Facilitates Private NFTs
To start with, both the metadata of the private NFT and its underlying asset are stored on Arcana Network’s storage nodes. Basic information about the private NFT, such as the name, description, DID, and thumbnail can be viewed by anyone with access to the Arcana Network blockchain. The underlying asset, however, is encrypted and can only be viewed or accessed by the owner.
Here’s how the above-mentioned aspects actually work during minting:
- First, the creator will upload the underlying asset and generate a DID.
- Next, the user will include the DID obtained in the previous step, include it in the metadata & upload it as well to the Arcana storage layer.
- After the metadata is successfully uploaded, we will return a URL that would be added to the NFT metadata and the NFT can then be minted.
Visit https://nft-minter.beta.arcana.network to get started.
The access control after minting, will lie in the owner’s hands and they get to provide access to the underlying asset. Anyone with access to the private NFT can view it by visiting nft-viewer.beta.arcana.network and authenticating through the wallet that has permission to view the NFT.
About Arcana Network
Built for Ethereum and EVM-based chains, Arcana is the web3 infrastructure to easily onboard dApp users and enable user data privacy and ownership. Web3 developers use Arcana’s SDKs for a seamless, familiar user onboarding experience via social authentication and passwordless login. All user data is encrypted, secured with data access fully controlled by the users, and powered by blockchain.
Arcana has raised 2.7Mn USD from some of the leading investors and founders in the ecosystem such as Balaji Srinivasan, Founders of Polygon, Woodstock, Republic Crypto, and Digital Currency Group.
Watch out for Arcana’s upcoming Testnet and Mainnet in 2022.