It’s a quality video, but I bowed out about halfway because I was already familiar with about 90% of the stuff he was discussing.

Great source for anyone looking for a good breakdown of the whole situation.

I usually just point to this quote from NFT co-creator Anil Dash:

https://www.theatlantic.com/ideas/archive/2021/04/nfts-werent-supposed-end-like/618488/

But the NFT prototype we created in a one-night hackathon had some shortcomings. You couldn’t store the actual digital artwork in a blockchain; because of technical limits, records in most blockchains are too small to hold an entire image. Many people suggested that rather than trying to shoehorn the whole artwork into the blockchain, one could just include the web address of an image, or perhaps a mathematical compression of the work, and use it to reference the artwork elsewhere.

We took that shortcut because we were running out of time. Seven years later, all of today’s popular NFT platforms still use the same shortcut. This means that when someone buys an NFT, they’re not buying the actual digital artwork; they’re buying a link to it. And worse, they’re buying a link that, in many cases, lives on the website of a new start-up that’s likely to fail within a few years. Decades from now, how will anyone verify whether the linked artwork is the original?

All common NFT platforms today share some of these weaknesses. They still depend on one company staying in business to verify your art. They still depend on the old-fashioned pre-blockchain internet, where an artwork would suddenly vanish if someone forgot to renew a domain name. “Right now NFTs are built on an absolute house of cards constructed by the people selling them,” the software engineer Jonty Wareing recently wrote on Twitter.

Meanwhile, most of the start-ups and platforms used to sell NFTs today are no more innovative than any random website selling posters. Many of the works being sold as NFTs aren’t digital artworks at all; they’re just digital pictures of works created in conventional media.

The limited number of bits in the blockchain is a massive limitation on doing anything functional outside of bookkeeping with the crypto on the blockchain. It’s the most fundamental aspects of NFTs and it has been broken since Day One.