NFT Preservation and Archiving Best Practices

When it comes to the ever-evolving world of NFTs (non-fungible tokens), new concerns arise that go beyond buying, selling, and trading. One such issue relates to the lasting value and sustainability of NFTs: the preservation and archiving of these digital assets. How do you ensure the longevity of your NFTs, especially amid frequent platform modifications, data losses, or even full shutdowns? Below, we delve into some best practices for NFT preservation and archiving for the benefit of beginners, advanced traders, and investors in the NFT market.

Understand the Unique Nature of NFTs

NFTs, unlike cryptocurrencies, represent unique digital assets such as digital art, music, games, and other collectibles. Ownership of the NFT is written to a blockchain, which serves as a decentralized ledger. However, the actual data for the NFT (the digital art, music file, etc.) is usually stored elsewhere, not on the blockchain. Hence, when you buy an NFT, you’re essentially buying a hash—a token that points to the location of the digital asset. Understanding this helps you discern the importance of preservation and archiving.

Know the Risks That Could Lead to Loss of NFTs and Solutions

A primary concern for NFT preservation is the “link rot” risk. Link rot refers to the breaking of URLs or hyperlinks. If the asset linked to the NFT gets moved or deleted from its original location, the NFT becomes a token pointing to something that no longer exists. Likewise, link rot can occur if the hosting platform for the asset goes down or the platform owners decide to delete the asset. Businesses’ shutting down (“biz rot”) can also lead to data loss.

Solution 1: Employ IPFS for Storing NFTs

InterPlanetary File System (IPFS) is a decentralized system for storing and accessing files, websites, applications, and data. Using IPFS to store NFTs can mitigate the risk of link rot. Unlike HTTP, where data is located at a single location (resulting in single points of failure), IPFS allows data to exist on multiple nodes, providing a form of data redundancy. NFTs stored on IPFS have an additional layer of security due to this decentralized hosting approach.

Solution 2: Use Cold Storage Wallets

Another way to preserve NFTs is by storing them in cold storage wallets. These wallets store your NFTs offline, making them less susceptible to hacking attacks or server downtime occurrences. Wallets like Ledger or Trezor are excellent options for this.

Practices for Archiving NFTs

Record-keeping and are critical elements of NFT archiving. Any change in the status, location, or ownership of the NFT should be recorded. Moreover, keeping a diversified portfolio of your NFTs across multiple platforms can ensure your assets’ longevity and safety.

Engage the Services of Digital Archiving Experts

Consider enlisting consulting services from digital archiving experts. As professionals, they have the know-how to address the complexities associated with NFT preservation and archiving. They can provide customized solutions based on the nature of your NFTs.

In Summary

Preserving and archiving NFTs require being proactive and taking practical steps. Properly understanding the nature of NFTs, recognizing the risks involved, employing IPFS for storage, using cold storage wallets, proper record-keeping, and engaging professional services all contribute to ensuring the longevity and immutability of your NFT assets. Navigating the NFT space may be challenging, but with adequate information and initiatives, you can ensure your digital assets’ preservation.