KnownOrigin, a prominent player in the digital art space since 2018, has recently announced its shutdown, raising concerns about the reliability and longevity of NFT storage solutions. The platform, which allowed artists to mint, sell, and trade NFTs, was acquired by eBay in June 2022, signaling a strategic move for the e-commerce giant to enter the NFT market. However, less than two years later, KnownOrigin is closing its doors.
The shutdown of KnownOrigin has brought to light the debate surrounding on-chain versus off-chain storage for NFTs. The reliance on the InterPlanetary File System (IPFS) as a storage solution has raised questions about the sustainability and security of digital assets. Artists like Ella, also known as BrightLightArt, have expressed concerns about the longevity of art stored on IPFS. If the entity hosting the IPFS node goes out of business or stops maintaining it, the data could become inaccessible, rendering the NFT worthless.
Jonty Wareing, a critic of current NFT storage practices, has shed light on the fact that NFTs often point to off-chain files stored on platforms like IPFS, rather than directly on the blockchain. This dependency on third-party platforms for the storage of NFT data poses a significant vulnerability, as demonstrated by the shutdown of KnownOrigin. While some projects opt for entirely on-chain storage, this method comes with its own set of challenges, particularly in terms of cost for projects with larger media files.
In response to the concerns raised by the KnownOrigin shutdown, some in the NFT community are advocating for blockchain-based storage solutions like Arweave. Unlike IPFS, Arweave offers permanent data storage for a one-time fee, stored across a decentralized network of computers. This could provide a more reliable option for storing digital art in the long term, though it still relies on the health and continuity of the underlying network.
The closure of KnownOrigin serves as a reminder of the importance of understanding how NFTs are stored and the risks associated with current storage practices. As the technology continues to evolve, it will be crucial for NFT platforms, artists, and collectors to push for more secure and sustainable storage solutions. Discussions sparked by events like the KnownOrigin shutdown may lead to significant improvements in how digital art is stored and preserved, benefiting the entire crypto art community in the long run.