The Intricacies of Hosting NFTs Explained.

Because it can’t feasibly reside on the blockchain, the content that a particular NFT references — whether it be an image, an audio file, or any other type of data — must be hosted online somewhere, so that when you make a request for the content at a particular location, the content is then returned and the image, for example, is displayed on your web browser. NFTs must then point to an HTTP URL on the internet, or perhaps to an InterPlanetary File System (IPFS) hash. So who is responsible for hosting the data online?

In either case, the HTTP URL or IPFS gateway is typically hosted by the website that hosts the NFT, and usually points to a JavaScript Object Notation (JSON) metadata file for a particular NFT artwork rather than the artwork itself. In other words, you’re buying a certificate of ownership and authenticity, not the artwork itself. The metadata inside each NFT exists as a permanent, unalterable record on the blockchain. This record describes what the token represents, similar to a certificate of authenticity, as well as the token’s ownership history and transaction record. The JSON metadata file also contains the name, description, and URL where the image is hosted. It could also contain a timestamp, information about the artwork’s total supply, the type of encryption used, and the artwork’s unique signature.

What this boils down to is that the owner of an NFT essentially owns a metadata file that only points to a piece of art, which is often publicly viewable online.