Data accessibility: The Major Challenge for the NFT Market

  • The complete lack of data accessibility arises as one of the most prominent challenges in the NFT market today. 
  • This is mainly due to a lack of resources that can track NFT Collections with a detailed analysis. 

The NFT market is still growing and asserting its valuable. In many cases, its value can be incalculable whereas in some cases it can be overestimated. Many recent cases are evidence of the fact that it can easily be targeted for committing financial fraud because of being nearly indetectable. However, with strong and robust analytic tools, it can still be curbed to a level where it is not quite threatening. 

The Causes of Lack of Data Accessibility in NFTs Market

The NFT market today is considered to be highly unorganized and fragmented. As it is still new to the Blockchain fraternity, it lacks data related to its origin, passing on history, and more such important data. This generates a mammoth task for the evaluators to determine a certain value to any NFT which is reasonable and stands true when it comes to an accurate amount. As the data is completely scattered across different platforms, there lacks a single source of information that can give an overall view of the NFT’s position in the market. 

Reasons for Accelerating Data Accessibility in NFTs 

If there is sufficient and relevant data available in the market relative to an NFT, it will help the sellers and buyers to identify a fair price, eliminating the possibility of parties duping one another. It is also important to maintain transparency, in turn making the ownership history and concurrent value of the NFT public on the blockchain platform. Better Data Accessibility is anticipated to enhance the liquidity on platforms as it will become a more used manner of trade between two parties. Hence, improving the platform’s performance. Overcoming this particular challenge will also help in better and more meaningful comparisons between different NFTs. It will help users navigate better between a number of NFTs available and choose the one which fits best in their requirements. 

With every currency or asset that catalyzes any trade, the major focus has always been on the value determination of that particular currency. Cryptocurrencies are quite similar to this perspective. A lot of attention is now on NFTs as it is one of the least explored aspects of blockchain technology. Crypto experts are still forming their views regarding NFTs now available on platforms as a form of real trade. In such a case, lack of Data only hampers the process to make it more acceptable and popular among the masses. Those who are still understanding the now-hows of the business in the crypto world need information from the basics when it comes to NFTs and the part where it is not easily available does not help with its popularity. In such a case, people tend to shift to only reliable sources such as the Yuga Labs and a few more. Therefore, other NFT companies can also lay focus on innovative technologies to make data accessible for NFTs.