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Dear unbanked people,
Most NFTs store the art and key metadata “off-chain.”
However, there is a growing demand for “on-chain” NFTs for better permanence and security.
But don’t you know what actually makes your project on-chain?
Do not worry. I will help you with everything. In today’s post, we’ll look at different aspects of onchain, as well as some example projects and DIY resources for reference!
-WMP
🙏 Sponsors: Kraken — Kraken NFT was created for secure NFT transactions. ✨
Metadata storage in the NFT ecosystem is not an either/or matter as there are a variety of approaches, ranging from completely off-chain to completely on-chain. Each approach has its own differences, so we’ll look at them in more detail below.
Off-chain storage essentially occurs when only the tokens of an NFT collection exist on the blockchain and the core metadata (e.g. attribute information) and media (e.g. art) are hosted externally. This approach is inexpensive and offers flexibility, but conversely it offers the least guarantee of long-term durability. This is especially true if NFT data is stored on a private server setup rather than via a decentralized storage network like Arweave, Filecoin, or IPFS. . At the very least, these networks allow the community to assume stewardship if the original creators cease operations and this kind of closure occurs. have This has happened before with NFT platforms like Ascribe, Digital Objects, and Editional. That’s right. Even FTX. So off-chain storage isn’t a bad thing in and of itself, it’s a spectrum in itself, but it’s something to be careful about when you have other potential problems, such as centralized and editable smart contracts.
In a non-generative context, semionchain storage is when a project stores some or most of its key metadata on the blockchain while also storing media content off-chain (e.g. IPFS). In the context of generative art, such as art blocks, this type of storage occurs when a collection stores its main code (output instructions + input “seed” hash) on-chain but still relies on some off-chain dependencies, such as external code libraries. .
An alternative on-chain technology that avoids NFTs in favor of media encoding within Ethereum transaction call data. This technique has recently become popular again. ethicshas been around since 2016 and has experimented with projects such as: 0xmons, Blitnauts and more. Catch? These encodings are at risk of being erased during Ethereum’s encryption process. Proposed “Purge” Upgrade.
This method was first made famous by Larva Labs six years ago when it originally implemented it via its CryptoPunks smart contract. In the creator’s words: “When we created CryptoPunks in 2017, we linked a composite image of every punk to a smart contract by storing a cryptographic hash of the image in the Cryptopunks contract. This makes it clear that the contract belongs only to that image.”
This hybrid approach occurs when a project is retroactively brought on-chain. That is, let’s say the collection’s original smart contract stores that media externally. Then, later on, the project decides to officially keep the media in the collection on-chain by deploying it to a new, separate smart contract. Although the original contract and the subsequent contract are not directly connected, they actually live side by side. Examples of projects that have undertaken this effort include: Cryptopunk in 2021 and Cryptoz in 2022.
The “gold standard” for token durability, this storage method is where all data and media required to view or play NFT content are stored directly on the same chain on which the NFT was minted (e.g. Ethereum). This method is powerful in that the content is accessible, composable, and interoperable for as long as Ethereum exists, that is, indefinitely. This category may include cases where a project uploads files entirely on-chain (e.g. CyberBrokers SVG) or cases where the project’s NFT content is created real-time on-chain (e.g. “on-chain”) by the Ethereum virtual machine. there is. runtime art. This category also includes cases where generative art projects store code on chain. and Relies on on-chain libraries. yes: p5js. In the past, creating fully on-chain art was relatively expensive in terms of gas costs, but recently innovators have been coming up with increasingly affordable ways to mint on-chain. Chaos Lord by chain left This is one example of the possibilities for greater efficiency here today.
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🔲 autoglyph — Autoglyphs, created by CryptoPunks creator Larva Labs, is hailed as Ethereum’s first on-chain generated art collection.
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👽 Avatar — Avastars, inspired by Autoglyphs, later became the first PFP collection to store metadata entirely on Ethereum. We pioneered a way to store pingable SVG feature banks within smart contracts.
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🐸 baby pepes — A collection of animated GIFs by xtremetom, developer and co-founder of Cool Cats, following and documenting his journey to becoming on-chain.
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🗡️ booty — If you’ve been around 2021, you probably remember that the text-centric Loot adventurer gear NFTs were a sensation. But what you may not know is that the 8,000 pieces were created “in-chain” directly by the code and the EVM, because the files were not uploaded. To Ethereum.
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🦉 moon bird — This collection of PFPs, an on-chain migrater, started with IPFS storage but later invested in uploading all attribute layers to Ethereum smart contracts, which are now responsible for image assembly and backstops.
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🧮 neoplastic agent — Created by on-chain innovator and creative Simon de la Rouviere, this is one of the first on-chain generative art projects and the first to use bond curves for NFT mining.
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🌟 noun — Nouns DAO’s architecture is not only completely on-chain, from the art generator to the governance system, but also incredibly innovative. As RTFKT Chief Technology Officer (CTO) Samuel Cardillo Before explained“(This) smart contract… It’s outside this galaxy. Pure perfection. In a very clever way, everything created is decentralized and created on-chain..”
In the past, if you wanted to create an on-chain NFT but didn’t have smart contract development skills, you had to get help or services from someone who did.
But now there are no-code resources that creative people can leverage if they want to easily create content on-chain. for example, An indelible laboratory It is one of a suite of tools that makes it easy to drop large NFT collections onto the chain. The latest releases to watch out for here are: effective by refuseA streamlined interface for minting fully on-chain ERC-1155 NFTs. Diversity.
If you want to zoom out and better understand the scope of on-chain projects we’ve seen in NFTs to date, check out: Onchain Cannon, a great repository comprehensively curated during my time at JPG. Another resource to keep an eye on here in the future is: On-chain checkers by Token Fox. Currently in early access, the platform is designed to help you get an idea of how a particular collection is doing using the 5-point scoring system.
Big picture? In a technological niche that requires complex knowledge to create on-chain NFTs, the shift to more accessible, no-code solutions like Indelible Labs and Efficax represents the democratization of on-chain mining.
Although NFTs continue to grow in popularity, it is important to consider not only where your data resides, but also how that location may affect its lifespan and value. For both collectors and creators, it is more important to understand the implications of each choice than to choose a side on the off-chain-on-chain spectrum.
What “fully on-chain” means is primary durability, full composability, and continuous interoperability. And in my opinion, it’s a very attractive combo for us cryptocurrency dreamers!
An unbanked citizen ⚑ turned $264 into $6,077 last year. 22x ROI in a bear market 🚀!
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It is not financial or tax advice. This newsletter is strictly educational and does not constitute investment advice, a recommendation to buy or sell any asset, or a recommendation to make any financial decisions. This newsletter does not constitute tax advice. Consult your accountant. Do your own research.
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