What You Need to Know About IPFS and Pinata NFT Hosting Services
Is blockchain, which powers cryptocurrencies, the only network that offers decentralization features? The answer is no’. Several other technologies, including the Hyperledger project, which has backers like IBM, strive to distribute control over any network in their own way.
Another technology, seemingly similar to blockchain, is the Interplanetary File System or IPFS. One of the service providers in this space is Pinata, which describes itself as a Content Delivery Network (CDN). Today, let’s explore IPFS technology and also understand what players like Pinata are doing in the non-fungible token (NFT) space.
What is IPFS?
IPFS is considered a peer-to-peer network, where files are stored and accessed in a distributed system. It can be understood as a storage network powered and managed by peers that can be widely distributed geographically. To some extent, IPFS is not exactly a blockchain network. Rather, it is a way to unify the data available across multiple blockchain networks.
IPFS is considered a public network with distributed hash tables or DHTs, which make stored content publicly visible. Sometimes referred to as Filecoin, which is another distributed storage network, IPFS differs slightly as it also allows movement of stored content.
What is the Pinata?
Pinata is a player in the IPFS market, which claims to provide faster content sharing and requesting services. It also allows personalization through a branded domain for the user. The Pinata NFT service, which allows the user to share the digital asset on Twitter, Instagram and other social networks, is the highlight. Pinata enables hosting of NFT assets on the IPFS, which adds metadata functionality to the asset.
The company, which reportedly raised US$21.5 million earlier this month, markets itself as a Web 3.0 content storage enabler.
Is Pinata NFT safe and viable?
There are contrasting views. Some analysts believe that Pinata adds IPFS functionality, which can help generate a content identifier (CID) to verify the authenticity of an asset. However, some point out that Pinata is “not viable” in the longer term, particularly due to the high fees charged for its services.
Are NFTs valuable?
Spending money on Pinata NFT services makes sense when the user plans to earn digital asset. However, not all NFTs are valuable, and many projects have failed to replicate the success of BAYC or CryptoPunks. Separately, some of Beeple’s NFTs like Everydays are very expensive, however, Beeple’s collaboration with singer Madonna could not repeat the same success.
Read also: What is the Pudgy Penguins NFT Collection? Is it expensive?
At the end of the line
IPFS technology and players like Pinata have yet to prove their long-term viability. The NFT support provided by Pinata can be used by paying a fee, which some say is quite high.
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