What is an NFT?
Non-fungible Tokens (NFTs) are digital assets representing real-world objects, like a piece of art, a song, or a video game. They are bought and sold online, often with cryptocurrency, and are usually coded with the same underlying software as many cryptos.
NFTs have been around since 2014, but they are gaining mainstream attention presently because they are becoming a popular way to buy and sell digital art. In 2021, the market for NFTs was worth a staggering $41 billion, which is close to the total value of the entire art industry.
NFTs are unique because they create digital scarcity. As a blockchain-based token, it is an irrevocable digital certificate of ownership and authenticity for a digital asset.
This is very different from most digital creations, which usually have unlimited copies. Theoretically, if an asset is in demand and the supply is cut off, the value should go up.
Key Features of an NFT
An NFT is unique
Each NFT has a piece of unique information registered on a blockchain. Each NFT has its characteristics, and no two are the same. On the other hand, an original jpeg file is the same as its copy, a jpeg file.
NFTs are a digitally scarce resource
NFTs are stored on the blockchain network. So, the certificate of ownership can be found on different networks, making it possible to prove who owns a digital item.
NFTs are indivisible
Most NFTs can’t be broken up into smaller fragments, and you can’t buy or give away a portion of them.
Generally, they are cryptographically verifiable, unique or scarce, and easily transferable.
How to Create an NFT art
The best platforms for making NFTs are OpenSea and Rarible. Although Rarible has the most sales, OpenSea has more related services, like letting you create your NFT collections powered by the OpenSea marketplace. Both platforms allow users to upload their art and create collections without necessarily knowing anything about blockchain technology.
Note that there will be some up-front fees before you start. NFTs are anchored on the Ethereum blockchain. To tokenize your art, you’ll need to pay a network fee called the “gas fee” that comes with using a blockchain.
Rarible requires artists to mint their NFTs on the blockchain (on-chain). If you want to sell a few NFTs for a lot of money, Rarible is probably your best bet. On the other hand, you should use OpenSea’s Collection Manager if you want to make a lot of cheap NFTs.
Users can pay a one-time fee to start a new collection with OpenSea Collection Manager. From that group, the OpenSea centralized team can make an unlimited number of NFTs and store them off-chain until they are sold. At this point, the buyer will pay the gas fee for the transaction, and your NFT will be added to the chain and transferred.
Now, this is a step-by-step guide on how to create your unique NFT art
Set up a software wallet. E.g. MetaMask.
This is the first thing you’ll need to do to make your own NFT. You can store your NFTs in this wallet, and you’ll also need it to pay blockchain gas fees in the future.
Go to metamask.io, where you can add the chrome extension or download the app. It’s easy and free to get a MetaMask wallet. Please make sure you remember your seed phrase in case you ever need to get your wallet back.
Keep in mind that wallets don’t hold cryptocurrency or NFTs. Instead, they store your private key, which is needed to authorize transactions. All cryptocurrencies and NFTs are stored on the blockchain, and ownership is shown by the wallet ID.
Tokenize your Digital Asset
Once you have made a wallet, you can now make your own NFTs.
- Go to opensea.io and click the Create button in the menu bar.
- Link your MetaMask wallet to OpenSea and start working.
- Click the Add New Item button after giving your NFT collection a name.
- You can now upload the file you want to turn into a token and give it a unique feature from the rest of your collection.
- Find out how many of each item you want to sell, and then set a price.
Finally, List on a Marketplace
You’ll need to allow OpenSea to sell items from your account before you can sell your first NFT. This needs to happen on the blockchain, so you’ll have to pay a “gas fee.”
Send some Ether to your MetaMask, and you’re ready to go. This fee is only due the first time you set up an NFT collection.
If you don’t already have Ethereum, you can buy some from an Exchange and send it to your MetaMask wallet. Since you have given OpenSea permission to sell your NFTs, anyone can find them on the OpenSea marketplace and buy them.
NFTs on a blockchain let artists connect directly with their audiences. They can also help improve the way business operations. For example, if a wine bottle has an NFT, it will be easier for different players in a supply chain to interact with it and track where it came from, how it was made, and where it was sold.
Finally, think of NFTs the same way you would any other investment. Do your research, be acquainted with the risks involved, and proceed with a good level of caution if you decide to invest.