Is the NFT trading platform data real on the chain? Comprehensive analysis of technical features

The operation mode of NFT (non-homogenized token) trading platforms is evolving, but the question of whether the transaction data is truly uplinked has been a focus of industry attention. This paper discusses in depth the data uplinking and technical characteristics of NFT trading platforms, analyzes whether the platforms have truly realized the uplinking and storage of data, and explains the technical principles behind in detail to help readers better understand the transparency and security of these platforms. This paper also combines examples to analyze the impact of whether platform data is uplinked or not on user experience and market trust.

What is NFT trading platform data on the chain?

In the NFT trading platform, data on the chain refers to whether the transaction records, asset information and user interaction data on the platform are truly and transparently stored on the blockchain. Simply put, blockchain technology ensures that the data cannot be tampered with and is open and transparent. If the transaction data of NFT trading platform is not truly uploaded on the blockchain, it is difficult for users to confirm the authenticity of the transaction records, and the security of the transaction and the credibility of the platform will be greatly reduced.

Key features of data uploading

1. decentralized storage
   The decentralized nature of the blockchain allows anyone to verify the authenticity of a transaction and prevents a single party from tampering with the transaction record. Every transaction is encrypted and stored in the blockchain and all data can be traced.

2. immutable
   Once confirmed, data on the blockchain cannot be modified or deleted. This ensures that records of NFT transactions, once on the chain, will always maintain the integrity of the original data.

3. Transparency and verifiability
   Every transaction on the blockchain is publicly available. Any user can check their own or others' transaction records through the blockchain browser, thus ensuring the authenticity of the data.

Are NFT platforms true to the chain? Differences between platforms

Different NFT trading platforms have different approaches to data uploading, with some relying entirely on blockchain technology, while others may adopt a partial or pseudo-uploading approach. Some platforms may choose to store transaction records or asset information in traditional databases and use blockchain to "tag" the data rather than store it in its entirety.

Differences between full and partial uplinking

• fully uplinked
  Platforms using this approach will store every transaction data, NFT details directly on the blockchain, including images, files, etc. This approach is the most secure, fully utilizing the non-tamperable nature of the blockchain to guarantee the authenticity of the data.

• partially uplinked
  Some platforms upload only the "metadata" or "credentials" of the transaction to the blockchain, while the actual asset files, such as images, audio or video, are stored on the platform's traditional servers. While the authenticity of the transaction can be verified through the blockchain, the question of whether the actual files remain intact remains potentially problematic.

Platform Examples

For example, mainstream platforms like OpenSea and Rarible will indeed have most of their transaction and asset data fully on-chained, while some of the more emerging NFT platforms may be on-chained through a hybrid solution, with some data stored on the blockchain as well as some data stored on traditional servers. This requires users to pay special attention to the platform's uplinking method and the technical characteristics of the blockchain used.

Principles and Challenges of Data Uploading Technology

While blockchain technology itself is decentralized, transparent and tamper-proof, there are some technical challenges to fully uploading NFT transaction data.

The technical challenge

1. Storage cost issues
   Blockchain itself has high storage space requirements, especially in the NFT space, where each NFT's image or file data may take up a large amount of storage space. Due to the relatively high storage cost of blockchain, some platforms choose to store the file data in external storage and only upload the "metadata" of the transaction.

   

2. Blockchain performance issues
   Some public chains (e.g., Ether) currently have bottlenecks in transaction speed and throughput. When the number of NFT transactions spikes, the blockchain's processing power may not be able to keep up, resulting in transaction delays or high transaction fees.

3. Data privacy issues
   While blockchain is transparent, owners of NFTs may face difficulties when they wish to protect their personal privacy. Some blockchain platforms have begun to explore privacy-preserving technologies, such as zero-knowledge proofs, to balance the openness and privacy of data.

Technical Solutions

To address these issues, many platforms are introducing second-tier scaling solutions (e.g. Polygon, Optimism, etc.) to optimize the NFT trading experience by reducing transaction costs and increasing transaction speed. Some platforms are also using IPFS (Interplanetary File System) to store NFT media files to ensure decentralized storage of files.

How do I verify that NFT transaction data is actually on the chain?

The most direct way to verify whether NFT transaction data is actually on the chain is to query it through a blockchain browser. Most blockchain browsers (e.g., Etherscan, BscScan) provide a user-friendly interface that allows anyone to query the detailed records of a transaction via the transaction hash or the contract address of the NFT.

verification step

1. Find Transaction Hash
   On the Transaction History page of the NFT trading platform, find the Transaction Hash (TxHash) you want to verify.

2. Querying with the Blockchain Browser
   Go to the Blockchain Browser and enter the transaction hash or contract address to view the details of the transaction, including the time, the parties to the transaction, and the amount of the transaction.

3. Validating NFT data
   In addition to transaction information, it is also possible to see if the NFT's unique identifier (e.g. TokenID) actually exists on the blockchain and matches the information displayed by the platform.

summarize

With the rapid development of the NFT market, whether the data of NFT trading platforms are truly on-chain has become an important measure of market transparency and trust. Although there are some technical challenges in fully uplinking, it can better guarantee the transparency and tamperability of transactions. When choosing an NFT platform, users should pay attention to the platform's technical solutions and data uploading methods to ensure the security of their transactions and the authenticity of NFT assets.

When using the NFT trading platform, it is recommended that users verify the authenticity of the transaction data through the blockchain browser, which not only helps to enhance their own sense of transaction security, but also provides a more intuitive understanding of the platform's operational transparency.