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Remember when NFTs sold for millions of dollars? 95% of the digital collectibles are now probably worthless. (markets.businessinsider.com)

submitted 1 year ago by L4s@lemmy.world to c/technology@lemmy.world

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Remember when NFTs sold for millions of dollars? 95% of the digital collectibles are now probably worthless.::NFTs had a huge bull run two years ago, with billions of dollars per month in trading volume, but now most have crashed to zero, a study found.

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[–] LexiMax@lemmy.blahaj.zone 2 points 1 year ago* (last edited 1 year ago) (1 children)

Essentially, the NFT is "proof of ownership" only insofar as what is put into the blockchain is correct and accurately reflects reality.

If you don't vet what goes on the blockchain for accuracy, the blockchain is useless, and if you do validate, you don't need a blockchain because the validator can just use a traditional database.

It is a solution in search of a problem.

[–] Syrc@lemmy.world 1 points 1 year ago (1 children)

So it’s a matter of being relatively easy to scam people with it? Is it an issue only when the NFT is “made” for the first time or for every transaction too?

I personally thought the appeal was that you can sell them as regular items, whereas if they were in a traditional database you still would’ve needed the transaction to be approved by the database itself.

At least that’s what I figured, I know nothing of how selling an NFT works so I could be just talking out of my ass.

[–] LexiMax@lemmy.blahaj.zone 1 points 1 year ago* (last edited 1 year ago)

So it’s a matter of being relatively easy to scam people with it?

That is merely a side-effect of one of the original sins of programmable blockchains - the fact that there is a delegation of responsibility of data management from a database administrator to whoever happens to have control of that data, and the controller can only manage that data according to the underlying code of the NFT.

This only sounds appealing if you've never actually touched a database in your life. There are too many points of failure, and said mistakes are much harder to correct.