How NFT Metadata Stores Provenance Information

When you buy an NFT, you’re not just buying a picture. You’re buying proof that you own a unique digital item-and that proof lives in the metadata. Without it, your NFT is just a link to a file that could vanish tomorrow. The real value isn’t in the image. It’s in the story behind it: who made it, who owned it before, and whether it’s still the same file you paid for.

What Exactly Is NFT Metadata?

NFT metadata is the behind-the-scenes data that describes your digital asset. Think of it like a birth certificate for a digital item. It includes basic info like the name, description, and image-but the most important part is the provenance trail. That’s the history of ownership: who created it, when it was minted, and every wallet that’s held it since.

This data is usually stored in a JSON file. A typical metadata file looks something like this:

• name: "Bored Ape #4821"
• description: "A rare Bored Ape with laser eyes and gold fur."
• image: "ipfs://QmXoypizjW3WknFiJnKLwHCnL72vedxjQkDDP1mXWo6uco"
• attributes: [{"trait_type": "Background", "value": "Blue"}, {"trait_type": "Eyes", "value": "Laser"}]
• creator: "0x742d35Cc6634C0532925a3b844Bc454e4438f44e"
• history: ["0x123...", "0x456...", "0x789..."]

The "history" field isn’t required by the original ERC-721 standard, but collections that care about trust-like 0N1 Force or CryptoPunks-include it. That’s what makes provenance real. Without it, you can’t verify if the NFT you bought is the same one that was originally minted.

Where Is the Metadata Stored?

This is where things get tricky. The blockchain records who owns the NFT. But the actual metadata? Most of the time, it’s stored off-chain.

As of 2024, 92.7% of NFTs use off-chain storage. Why? Because storing data directly on Ethereum costs about $1,200 per megabyte. That’s not practical for images, videos, or 3D models. So instead, the NFT points to a URL-usually an IPFS hash or a centralized server.

There are three main ways metadata gets stored:

1. Centralized servers (63% of NFTs) - This is the easiest for developers. You upload your image to Amazon S3 or Cloudflare, then link to it. But if the company shuts down, or violates terms of service, your NFT’s art disappears. In April 2025, Nike’s CloneX collection lost access to its art when Cloudflare blocked their domain. Owners still held the NFTs-but the images were gone.
2. IPFS (32% of NFTs) - IPFS is a peer-to-peer network that stores files by their content, not their location. Each file gets a unique hash, called a CID. If the file changes, the CID changes. That means if someone tampers with your NFT’s image, the hash won’t match. But here’s the catch: if no one "pins" the file (keeps a copy alive), it can disappear in six months. Studies show 47% of unpinned IPFS files become inaccessible within that time.
3. Arweave (5% of NFTs) - Arweave offers "pay once, store forever." You pay a small fee upfront-around $0.03 per MB-and the network guarantees the file will be stored indefinitely. It’s perfect for high-value NFTs, but it’s not widely supported yet.
4. On-chain (0.3% of NFTs) - Only a tiny fraction of NFTs store metadata directly on-chain. CryptoPunks are one example. They’re simple SVGs, under 4,000 characters, so they fit. This is the most secure method-no external links, no risk of data loss. But it’s not scalable for anything bigger than a tiny image.

Why Provenance Matters More Than You Think

Provenance isn’t just for collectors. It’s the foundation of value. If you can’t prove an NFT’s history, you can’t prove its authenticity.

Imagine buying a painting at auction. The gallery gives you a certificate of authenticity signed by the artist. Now imagine that certificate is on a piece of paper-and the gallery burns it next week. You still own the painting, but no one can verify it’s real. That’s what happens with NFTs using centralized metadata.

That’s why experts like Vitalik Buterin say: "NFTs without persistent metadata are merely pointers to potentially ephemeral content." They lose their entire purpose.

And the data backs this up. In Q2 2024, 68% of 1- and 2-star reviews on Trustpilot mentioned "inability to verify asset history" as their top complaint. Reddit threads like "My Bored Ape’s metadata disappeared-what now?" have over a thousand upvotes. People aren’t mad because the image is gone. They’re mad because the proof of ownership is broken.

How Provenance Is Verified

Good NFT projects don’t just store metadata-they verify it. The best systems use a two-step process:

1. Store the actual image or file on IPFS or Arweave.
2. Store the cryptographic hash of that file on-chain.

When you check the NFT’s ownership, you can compare the on-chain hash with the hash of the file you download. If they match, you know the file hasn’t been altered. If they don’t, the asset has been tampered with.

The 0N1 Force collection uses this exact method. Every NFT’s metadata includes the CID of its image. The blockchain stores a reference to that CID. Users can independently verify that the image they see is the same one tied to the token. That’s how you build trust.

Some newer systems are taking this further. In June 2024, Ethereum Name Service (ENS) launched its Provenance Protocol, which embeds immutable provenance records directly into NFT metadata with cryptographic signatures. NFT.Storage, which handled 2.7 million uploads in Q2 2024, now integrates with the Filecoin Virtual Machine, letting smart contracts check if a file is still stored correctly-without relying on a single company.

The Big Problems Still Left

Even with better tech, the system isn’t perfect.

First, mutable metadata. About 41% of NFT collections let creators change the metadata after minting. That means a creator could swap out the image, change the history, or delete the "creator" field. That’s not just bad-it’s dangerous. It turns provenance into a lie.

Second, lack of standards. The ERC-721 standard doesn’t require provenance fields like "creator" or "history." So most projects make them up. That means no two NFTs track history the same way. You can’t compare provenance across collections. Hedera’s HIP-412 standard is one of the few that forces these fields, but it’s not widely adopted.

Third, pinning dependency. IPFS is great-but only if someone keeps the files alive. If you’re a collector and your NFT uses IPFS, you’re responsible for pinning it. Most people don’t know how. That’s why Protocol Labs estimates 40-60% of NFTs created before 2023 will lose their provenance within five years if nothing changes.

What Should You Do?

If you’re buying NFTs:

• Check if the metadata is stored on IPFS or Arweave. Look for a CID (starts with Qm or baf).
• Use a tool like NFT.Storage or Arweave to verify the file hasn’t changed.
• Avoid NFTs hosted on centralized servers unless you trust the company will be around for decades.
• Look for collections that lock metadata after minting. No changes allowed.

If you’re creating NFTs:

• Use IPFS or Arweave. Never use a regular URL like https://yourcompany.com/nft.png.
• Include a "creator" field and a "history" array with every wallet that owned the NFT.
• Store the file’s hash on-chain. Let users verify it themselves.
• Don’t allow metadata updates after minting. If you do, you’re undermining trust.

The Future of Provenance

The NFT storage market is expected to grow from $327 million in 2023 to $1.2 billion by 2027. Why? Because provenance is no longer a nice-to-have. It’s the core value.

Enterprise users-banks, museums, game studios-are already adopting it. Deloitte found 78% of corporate NFT projects use on-chain verification. Gaming is the fastest-growing sector: 63% of blockchain game devs use metadata to track in-game item history.

The goal is simple: make digital ownership as reliable as physical ownership. You shouldn’t have to trust a company to keep your NFT’s art alive. You should be able to verify it yourself, forever.

Right now, most NFTs fail that test. But the tools to fix it exist. The question is: will creators use them?