# How is the Nid generated?

Nid complies with IPFS Kubo CIDv1, a prevalent content address format employed for identifying files and objects within the IPFS network. CID can be challenging due to the numerous formats, which can cause confusion. As a result, we have selected the most common CID for use in our system. To provide clarity for users, we refer to it as Nid, as CID can be ambiguous.

Defining Nid is crucial, as it creates a bridge connecting on-chain history and web3 storage. Without an appropriate definition, users might generate the hash incorrectly, leading to difficulties in locating the required history.

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