Published in · 5 min read · Mar 31, 2022
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Influencer Marketing Hub estimates the number of active NFT buyers per week to range from 1,500 to 15,000. Although the majority of these buyers have an average of $200 per collection, it’s not uncommon to come across six-figure sales, with some fetching as much as tens of millions. Basically, the industry is now attracting all levels of users and collectors, from a corporate elite in New York to a digital nomad in sub-Saharan Africa.
However, despite the proliferating popularity, NFTs are still relatively new. Moreover, the NFT space evolves at a rapid pace in terms of technology and utility. But the million-dollar question lies in ownership. How long can users hold NFTs? Can your rare collection reside in the blockchain forever? Find out more in this article.
Collectible and artwork NFTs are usually released in limited editions, meaning they are created with perpetual existence in mind. Blockchain technology complements these because once a creator records the NFT information it is immutable, and will remain that way as long as the blockchain network exists. That said, these NFTs can typically last for decades in your wallet or circulating the market.
Look at it as a traditional art piece that stays on your wall as long as you need it. With great maintenance and occasional restoration in case of damage, you’ll keep the art as long as you need it. Some forms of NFTs that tend to hold long-term value and shelf life include digital files, such as pictures, memes, GIFs, and avatars.
With the foregoing logic, it is accurate to assume that NFTs can last forever, right? Well, not really. To put this in a better perspective, let’s revisit the fundamentals of blockchain technology. Any blockchain, whether Ethereum, Concordium, or Solana is ideal for documenting transactions, but not exceptionally great when it comes to storing digital files.
Typically, digital files are relatively bigger in size to be stored directly on the blockchain. That said, a smart contract representing the NFT is what resides in the blockchain as opposed to the digital asset itself. That said, the smart contract might be available in the blockchain after a century but that doesn’t guarantee the existence of the digital file itself.
Moreover, a majority of industry players leverage web addresses to store NFT files. In the event of a hack or widespread internet outage, these files can vanish from their storage locations without a trace. We have already seen umpteen scenarios where users encounter a “404 Not Found” error when they try to retrieve their NFT files. There are also other risks associated with storing NFT files on web addresses, such as late domain name renewal.
Despite the risks and challenges highlighted above, collectors are always exploring innovative solutions that can help them store their digital assets files for as long as possible after minting. A viable alternative to web addresses for NFT storage is the InterPlanetary File System (IPFS), although the solution is not entirely watertight.
Just like the blockchain, IPFS leverages a decentralized system to store digital assets files. However, IPFS stores the NFT in a single node, which also poses the greatest risk. The failure of a single node can disconnect your NFT file from the entire network. That means it’s just gone like that.
If you’re lucky, multiple nodes in the network can replicate the NFT file and store it in case one node fails. However, this isn’t always a guarantee because the nodes must be interested in the NFT to replicate it in the first place. With high levels of node customization, this solution can store your digital assets file for years.
The NFT wave is penetrating several industries, including sports and entertainment. Although some collections in this category are for lifetime utility, most of them always mark a time-bound event, hence come with expiration dates. In that case, you might not be able to hold these NFTs for relatively longer periods because they will eventually be worthless.
That said, a creator may put an expiration date on their NFT collections, especially if the underlying utility is only applicable within a certain time frame. For instance, an NFT ticket may expire in tow weeks after an event. At the same time, pieces of a “dead” listing collection may also be terminated, especially if the entire edition doesn’t penetrate the market as the creator anticipated. The bottom line is that these NFTs will always last for a short while.
Ecosystem NFTs are collections that exist natively within a certain blockchain community. These NFTs are like rare collections and tend to exist as long as the ecosystem is there. In most cases, they offer basic access to other projects, as well as other utilities that may evolve as the ecosystem grows.
Storing these NFTs for relatively long is practical because most ecosystem projects come with native, integrated wallet solutions that are capable of holding digital files of all sizes. Moreover, ecosystem projects invest heavily in top-tier cybersecurity measures to guarantee the safety of user assets.
The basis of safe internet usage still applies when it comes to storing, accessing, and retrieving NFT files. A simple password that is easy to crack with brute force means bad players can still override your wallet and transfer the NFTs. The privacy and security of your internet-connecting device also play a critical role. Most importantly, back up your wallet as much as needed.
Collecting and holding an NFT collection removes it from the market supply. If the token has practical utilities for the everyday user, the demand will peak later, even if not today, and skyrocket its value. Moreover, rare NFTs come with fulfilling sentimental value beyond their monetary price tags. This is especially when the NFT gives you exclusive access to high-level online communities. Join SpaceSeven today and mint your first NFT collection that will appreciate with time. Even better, come and buy conveniently using your credit card.
