Elon Musk Weighs in on NFT Technology — Here’s What He Thinks
Elon Musk has again shared his opinion about the current structure of non-fungible tokens (NFTs), noting that embedding JPEG images into a blockchain can establish exclusive ownership for enthusiasts.
On December 27, Musk responded to a comment on his platform, X (formerly Twitter), where DogeDesigner questioned if “anyone still remembers NFTs.” This prompted a playful jab from Adrian Dittmann, who humorously likened NFTs to “web links leading to data you don’t truly possess.”
In a quick retort, the tech mogul underscored the importance of encoding JPEGs on the blockchain.
Yeah, at least encode the jpeg on the blockchain!
— Elon Musk (@elonmusk) December 27, 2023
This comment aligns with Musk’s previous statement on The Joe Rogan Experience Podcast on October 31, where he advocated for encoding JPEGs in the blockchain to prevent loss in case the hosting company goes out of business.
While NFTs gained considerable attention and traded for millions of dollars during the 2021 bull market, Musk’s critique reflects a sophisticated understanding of how NFTs operate.
In the NFT market, specific blockchain networks utilize centralized databases to store JPEG images linked to a unique non-fungible token hash ID. When investors trade or hold NFTs, they deal with and possess these hash IDs, not the actual media content.
The connection between the NFT and the media it represents relies on information stored in a centralized database. However, some blockchain infrastructures and projects have adopted a different approach by directly embedding popular NFT items, such as JPEGs, movies, and music, into the blockchain.
For Instance, Leonidas, a well-known NFT enthusiast, transformed a video clip containing Musk’s remarks into an Ordinals
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