Challenges for Non-Fungible Token (NFT)

NFT! NFT! NFT!

It has been the latest trend in the blockchain/crypto market since Jan 2021. A lot of people have made millions of dollars in selling NFTs. But i still believe that something is missing. Projects like cryptopunk, cryptokitties – i personally think the punks or kitties are overpriced. Do they have any real use-case? I don’t think there is any. So, IMO, One should identify a real use-case before creating an NFT or NFT platform.

There is another segment of the market i.e. real-estate, which i believe is still difficult rather impossible for middle class people to buy/own a shopping mall or other expensive properties. So, there has to be a distributed buying/selling of such digital assets. I would call it dNFT – distributed non-fungible tokens. Where people can partially own a piece of these NFTs. And interesting part is that not only just real-estate but in other categories too we can implement dNFT.

Increasing price/fee of Gas or of a network is another problem. Let me share my personal experience with such an NFT platform cryptokitties. Recently I bought a kittie and i wanted to place a sell offer. Can you imagine how much price was it charging me to just set my kittie for sell? It was $50+ worth ETH. Huh, I changed my mind and didn’t put my kittie for sell. Lucky are those people who already offered their kitties on sell. My point is that if I own something, and I want to sell it, then network (smart contract to be more precise) is charging me $50+ worth ETH, this is crazy.

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I also want to talk about their decentralization. I don’t believe that any of the NFT platforms available today are truly decentralized. Most of them are storing their content [art images, video & audios etc.] on either 3rd party storage like AWS S3 or using their own storage servers or decentralized storage like IPFS or BTFS (where the peers are required to access files – if no peers are available, then you can’t access the file and if it happens, then the NFT has no value because NFT itself has no value but the content they represent). What if my NFT is truly decentralized like Bitcoin/ETH, no matter which platform or wallet you use but you will always be able to move your money, store it safe if you don’t want spend. Platform Opensea solves this problem but is not supporting crosschain. Just imagine, i created an art, and uploaded on XYZ platform (say, on Ethereum blockchain) to make NFT. I can also create NFT of the same art on a platform ABC (which runs on Tron blockchain). How can this prove uniqueness and single ownership of the art. Well, logically, that means same art have two owners however the two accounts on two different blockchains were created by same person. That’s neither true decentralization nor it supports interoperability.

So, I ended up identifying 5 major problems with current NFT or NFT platforms. It is not like that none of these problems are solved by any NFT but no one solves all the problems.

  1. Most of them have no real use-cases
  2. They don’t allow partial ownership
  3. High network fees to execute contracts
  4. They are not truly decentralized
  5. They don’t support interoperability

Potential use cases are Art/Artist, Music, Video content & sharing, & real-estate categories.

Our research team has been working to solve all of these problems using NFT and we are more than hopeful that soon we will have an NFT product (dNFT) solving these problems and people will actually benefit from this. Those who are looking for an experienced blockchain developers to build amazing blockchain products please write us at sales@lapits.com or call us at +91-8287835848 , also those who are looking to join an innovative, a leading blockchain technology company recently awarded as top 20 blockchain solution providers from India, please feel free to share your resume at hr@lapits.com

Published by

Laxman Singh Founder & CEO at Lapits Technologies

NFT! NFT! NFT! It has been the latest trend in the blockchain/crypto market since Jan 2021. A lot of people have made millions of dollars in selling NFTs. But i still believe that something is missing. Read this article to know top challenges faced by most of the NFTs today. #blockchain #blockchaintechnology #erc721 #lapits #lapitstechnologies #nft #nfts #trc721