In the process of creating an NFT collection, files are typically not directly uploaded to the blockchain because storage is expensive on the blockchain and gas fees would be high.
So where do your files go? Well, your files need to be decentralized or else it defeats the purpose of an NFT.
Instead, images are “pinned” (uploaded) to IPFS– the InterPlanetary File System. It’s not actually “interplanetary”, but the idea is that files hosted on IPFS are copied to multiple nodes (computers) on the network, similar to peer-to-peer BitTorrent technology.
It’s not only your images that are uploaded to IPFS, but also the metadata. Metadata refers to the information about each NFT, such as the name, description, and traits. Data storage on the blockchain is expensive, so this “extra” data is stored on the IPFS network.
When selling a collection of generative NFTs to the marketplace, what makes them have value is scarcity– the fact that there is only one of each token.
But you can further add scarcity to an NFT by strategically using rarity. You can ensure that only a small percentage of your artworks contain certain traits. Some communities of “rarity snipers” are keen on collecting rare generative NFTs.