November 10, 2022 | Updated on December 5, 2022
One of the biggest challenges with new technology, like blockchain applications and Non-Fungible Tokens (NFTs), is that it’s much easier to jump to a conclusion than properly research what you do not know. This leads to misconceptions, confusion, and frustration.
Some think that NFTs are not safe, while others find that they are too complicated to use. Still, others worry that NFTs are a fad and do not have intrinsic value.
Such misconceptions cause many to dismiss a huge opportunity to collect and experience art in a new way.
Misconception #1: NFTs are created with screenshots
Have you ever heard someone ask, "Why should I pay so much money for a picture of this monkey when I can simply take a screenshot?". This question can apply to any NFT in anyone’s wallet, not just a Bored Ape. If yes, then you are not alone.
Many think that NFTs can be easily created or duplicated by simply copying and pasting or taking a screenshot of an online image. NFTs are tokens on a blockchain that use a cryptographically protected distributed ledger to record all transactions and proof of ownership. So, while anyone may take a screenshot of your NFT, only you, the true owner, can verify ownership of that NFT by tracking its provenance on the network.
Misconception #2: All NFTs are completely decentralized
When many hear about NFTs, they often think NFTs are completely decentralized may come as a shock to you, but that is not always the case. Firstly, blockchains can be both private and public, meaning that the degree of decentralization can vary. Therefore, "decentralized" is perhaps not the most accurate adjective for NFTs on private blockchains.
Secondly, and more importantly, blockchains are typically not capable of storing large file sizes like that of JPEGs or PNGs. Bitcoin, for example, has a block size of just 1 MB, whereas Ethereum, the largest network for NFTs has a block size of about 2 KB.
So, what is stored on-chain, and where is the actual image stored?
Only the NFT's metadata is stored on-chain. This metadata typically consists of an external URL that points to the location where the media file is stored. This location usually happens to be a centralized database like AWS or Azure. Nevertheless, with projects like IPFS and Inery, even media storage is now becoming decentralized.
Misconception #3: NFTs are a get-rich-quick scheme
Just like any new and exciting technology, NFTs have also been the subject of a lot of hype. And with this hype comes the inevitable get-rich-quick schemes that try to take advantage of your (and your friend’s) FOMO. But there is more to this than what fear-inducing media headlines might have you believe.
Yes, some people have made a lot of money by purchasing and selling NFTs. But e NFTs are not just some kind of magical money-making machine. Those that asked the right questions and did their due diligence before purchasing are often the ones that find the most value in their personal collections, whether they sell their NFTs or not.. Here’s an article that can better guide your research of any NFT project.
Misconception #4: Buying an NFT grants you ownership over the asset itself
This misconception is understandable and maybe stems from the fact that "NFTs" and "proof of ownership" are often used in the same sentence. Just because you own an NFT does not mean that you own the asset that is represented by that NFT. For example, if you buy an NFT of a digital painting, you do not own the copyright to that painting.
TRLab partners with artists to help them issue NFT artworks, but the intellectual property rights of the artworks remain with the artists. This is a mission-critical decision for us. It is core to our values that intellectual property rights remain protected. Our goal is to retain an artist’s creative expression and originality.
Misconception #5: It’s too late to dive into NFTs
Some think that they have missed the boat and that it is too late to dive into NFTs. But this could not be further from the truth! NFTs are still in their infancy and there is a lot of potential for growth. So, if you feel like you are late to the party, rest assured. Because Web3 is still nascent, this is the perfect chance to learn and grow with the technology.
There is no one-size-fits-all approach to producing, selling, and collecting NFT art. TRLab will continue to innovate and break new ground by enabling this new medium for artistic expression and expanding the collector base for artists and institutions.
For those looking to collect their first NFTs, we democratize access to known but previously inaccessible art for collectors and fans, making our platform the perfect destination to start your journey.
Rise above the noise and buy NFTs you love
The world of NFTs is still in its infancy and is evolving at a very rapid pace. So, it is only natural that there will be a lot of misinformation. But don't let the noise deter you from learning more about this space and how it can potentially change the way we interact with this revolutionary digital medium.
As established commercial brands venture into this space, more and more artists will adopt NFTs as a new medium for artistic expression. This shift is already happening, so do your research and only buy things you fully understand and love.
Be in the know