The growth of the NFT market has been remarkable, with billions of dollars worth of transactions taking place annually. To participate effectively in this digital economy, it is essential to understand the core technology behind NFTs, including blockchain networks, smart contracts, and metadata storage.
The ERC-721 standard, introduced on Ethereum in 2017, set the foundation for NFT creation and trading. However, newer standards like ERC-1155 have emerged to provide more flexibility and efficiency in batch operations. Other blockchain networks, such as Solana, Polygon, and Flow, also support NFT creation and trading.
Metadata storage is another critical aspect of NFTs, with the InterPlanetary File System (IPFS) being a popular choice for decentralized storage solutions. However, not all NFT projects implement proper decentralized storage, creating potential risks for collectors and creators.