What is NFT Metadata and How Does It Work

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Bittime - An individually identifiable digital representation of a blockchain-based tangible or intangible object known as a non-fungible token (NFT), usually stored intact without being subdivided.

In contrast, NFTs represent structured metadata associated with real or virtual items. Often, these tokens are independent of the actual object represented and serve as unique identifiers that facilitate the commercialization of interoperable physical or digital goods, as advocated by their proponents.

In 2012 or 2013, a file hash or other data was added to the Bitcoin blockchain to indicate its existence or legitimacy at a particular time. This milestone laid the foundation for the creation of “colored coins” tokens that are specifically identified by adding metadata to Bitcoin transactions .

So, what exactly is metadata and how is it generated? In this article, we will investigate these questions. Let's check it out!

What is NFT metadata?

NFT metadata includes the name, description, and other related details deemed important by the creator. NFT metadata functions as data that provides insight into other data. Additionally, images and other key digital assets that provide value to NFTs are often associated with their metadata.

One of the important questions that confuses individuals regarding NFT metadata is the exact location of the NFT stored off-chain —is this similar to Amazon Web Services or Google Drive? Additionally, who oversees the online storage of NFT metadata?

Therefore, metadata must be formatted in a way that the market can understand, as NFT markets use metadata to present non-fungible tokens to buyers and sellers.

Therefore, adopting existing metadata standards and adapting them to suit specific needs is critical to ensuring that your NFTs can interact with as many marketplace ecosystems, wallets, etc. as possible.

It is worth noting that NFTs emerged from the Ethereum ecosystem, and the ERC-721 proposal is the first widely accepted official standard for interoperable NFTs. ERC-721 defines metadata using standard JSON ( JavaScript Object Notation) format. JSON, because it is lightweight, is the most common format for NFT metadata and imposes no restrictions on the data structure.

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How does NFT metadata function?

An integral aspect of non-fungible tokens that enables their functionality is the NFT metadata. NFTs can reference external data to their smart contracts, allowing the network to access off-chain data. However, how is NFT metadata stored? Whether complying with ERC-721 or ERC-1155 standards, NFT metadata is often stored in the InterPlanetary File System ( IPFS ), a peer-to-peer system designed for storing multimedia files.

Given that IPFS operates differently from conventional file systems, it generates a content ID (CID) for each file stored on its network, distributing them across multiple independent storage providers.

However, even with robust content handling mechanisms, identifying the most reliable file storage provider is still a challenge. Filecoin provides a framework for a reputation system and a means of communication with a variety of storage providers.

Furthermore, IPFS introduced NFT.Storage, a platform completely dedicated to storing NFTs, which is free of charge. By uploading related data to IPFS and Filecoin via NFT.Storage, investors can immediately ensure the long-term preservation of their non-fungible token investments.

Next, the metadata stored on the IPFS network is fetched to the smart contract as a hash and linked to the protocol. The resulting URL is recorded in the self-executing contract repository and linked to the relevant token ID.

This URL points to a web-hosted JSON object with a clear structure and predefined properties. To seamlessly integrate with well-known marketplaces such as OpenSea and Rarible, they must contain certain fields (for example, name, description, and image) to display content correctly.

How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and safe way via  Bittime .  Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on  Bittime ,  make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into  your wallet . For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn  Complete Guide How to Buy Crypto on Bittime .

Monitor price chart movements  for Bitcoin (BTC) ,  Ethereum (ETH ) ,  Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime.

Also Read:

Bitcoin NFT, A Multifaceted Symbiosis

Non-fungible Tokens (NFT) and their explanation

What is Autonomous NFT (aNFT) and the Features It Has

DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.