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I'd like to create a unique set of NFTs of super high definition images. However they require sizable memories. These images must reside on a server so will transactions just point to this server address for the actual images if queried about the data? and if one of these NFT is consumed, does the data move to the buyer's server? And if so how is this resolved?

Also an idea. Would it be possible to have the data (image) scrambled and the only one it renders to is the owner (signed by the previous owner?)? And likewise, if owner desires to relinquish ownership he signs it to the buyer and he'll never be able to view it again. It also implies anyone can have a copy of the scrambled image if wishes.

Has this been done?

How does it work with current NFTs?

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These images must reside on a server so will transactions just point to this server address for the actual images if queried about the data?

Yes, the standard is to store those images in IPFS

and if one of these NFT is consumed, does the data move to the buyer's server?

No

Would it be possible to have the data (image) scrambled and the only one it renders to is the owner (signed by the previous owner?)?

I don't know if I understand your idea, but maybe the NFT owner encrypted the image with his cryptographic keys and then decrypted them when he wanted to load the image. I don't see how this would be useful, though, since most of NFT owners just want to show their tokens to other people.

And likewise, if owner desires to relinquish ownership he signs it to the buyer and he'll never be able to view it again.

No because he could store a copy of the image from once he was able to see it.

How does it work with current NFTs?

Take a look here, for example, if you pay attention, you'll see that the metadata has a series of information from the token, including an "image" key that points to an IPFS url.

So, basically, in Cardano, policies can have expire dates, so that, after this date, no more tokens with that policy can be minted. So to mint an NFT, you set this to, say, 2 hours from now, and only mint one token until this deadline. The image of the NFT is defined by the metadata, following this CIP, which is embedded in the transaction that mints the NFT.

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