Digital Currencies
NFT risks related to marketplaces with centralised storage and lack of institutional custody
The blockchain immortalises the hash and metadata. But the actual NFT lives on a centralised marketplace's servers. If the marketplace disappears, what remains is an orphan: a record on the chain pointing to an asset that no longer exists in the real world. After Axie, Terra Luna, Polygon, and Three Arrows, the possibility of marketplace failure is not far-fetched. So why is decentralised storage still not the norm?
Jul 2022 · 3 min read