Non-Fungible Tokens, or NFTs, are the most critical items in our current 2021 market. We’ve all heard about those insane stories of artists who made millions by selling NFTs. For instance, Mike Winkelmann made $69 million from selling his art. And that’s not all! Thousand of NFT creators are now in the limelight for creating unique and high-quality digital items that could very well sell for more than just a couple of millions. So, that begs the question; what exactly is an NFT? If that’s your current predicament, you’ve come to the right place.
In this article, therefore, we are going to take a nose dive into the Non-Fungible Tokens world and understand the tiny details that you’ve never heard about. More importantly, I will teach you how to make an NFT even if you have zero artistry or coding skills. Yes, that’s right! So, shall we get started?
Non-Fungible Tokens Guideline 2021: What is an NFT?
NFTs stands for Non-Fungible Tokens, but I’m sure that doesn’t make it any clearer, right? The crypto-world uses technical terms to describe simple concepts, and it’s easy to get confused in the process, which is precisely the case here. NFTs are more or less unique items that are irreplaceable since they carry a code; think of it like a barcode, which shows their previous owners’ records. See! It’s a simple concept to understand. However, it has greater applications than just digital signed artwork. Online stores like BitGeeky.io have been selling NFT’s that represent real world products such as hats and T-shirts, when the buyer purchases the NFT instructions on how to claim the real world good is sent. NFT also has huge potential for event and ticket sales, and possible every leasable or billable real world item could be an NFT.
But, to be honest, it’s a little more complicated than that. However, that’s the basic idea surrounding the NFT. Above all, NFTs can be anything- From tweets, painting, blog posts to special concert tickets and memes. Blockchain technology is so diverse that it offers a marketplace where you can sell literary anything. And now, with the NFT technology, the possibilities are limitless.
It’s important to point out that NFT is a type of digital asset like cryptocurrency. However, unlike cryptocurrencies, Non-Fungible Tokens are unique and can’t be exchanged.
So, what makes NFTs so unique as cryptos? The NFT file stores extra information, which makes it a one-of-a-kind item worth a lot more than cryptocurrency. Essentially, Non-Fungible Tokens are like any physical collectors’ item, but instead of coming in the form of a canvas painting, you will get a JPG file.
How do Non-Fungible Tokens work?
Typically, the NFT tokens are part of the Ethereum blockchain. That means these tokens are based on the ERC-20 protocols hence can be stored in any Ethereum based wallet. However, you will have to confirm if your ERC-20 wallet can hold such a file. The extra information in the NFT token allows them to take the form of video, art, music, etc. That’s because they hold value, NFTs can be sold like any piece of art in the marketplace. And the price value of the NFT will largely depend on the demand. And with that in mind, NFT sales are designed like auction events, and the highest bid will take the NFT token home.
Another essential part to remember is that as much as you can get an NFT art available in the market, a duplicate can be printed for showcase purposes. Today, it’s possible to print a canvas painting online, and the same case happens with NFTs. But the print will not have the same value as the original digital NFT token.
Therefore, you can’t just right-click on an NFT image and download it, thinking you can sell it later it become a millionaire. The downloaded file will not have the added information, and it’s virtually impossible to create a duplicate of this token. That’s what makes NFTs so valuable. They are impervious to duplication. Makes sense?
How to make NFTs?
You’ve gotten this far, and I’m sure you are probably wondering how you can mint your very own Non-Fungible Tokens. Technically speaking, we can all make NFTs. To be more specific, anyone can create work and turn it into an NFT on the blockchain technology in a minting process, then put it on sale in any marketplace of choice. Additionally, you can even add a commission into your NFT, which will pay you a percentage every time anyone resales it. Okay, now that’s out of the way, here’s a step-by-step guide on how to create an NFT:
- Start by creating an artwork idea, whether it’s an image, GIF, or artwork that’s collectible and unique.
- Decide on the blockchain you’d like to use for this process. Ethereum offers the largest NFT service, but other options include Binance Smart Chain, Tron, and others. Each blockchain will have its set of policies governing the NFT creation and purchases.
- If you go with the Ethereum option, then you will need an ERC-721 wallet that supports NFTs and around $50 worth of ETH to start.
- Once you have all these factors ready, you can connect your wallet and upload your chosen image and turn it into an NFT.
- Ethereum NFTs can be sold on OpenSea, Rarible, and Mintable.
However, when you create an Ethereum NFT, you can only sell it in the same marketplace. The same case applies to all other blockchain technologies with the NFT feature.
Take Away Message
As I said earlier, the possibilities of the Non-Fungible Tokens are limitless. All you have to do is add value to your creative idea, and you can sell it at a high price. But before you decide to buy and sell NFTs, you will have to understand the concept and everything there is to know about this feature. And that’s what this article is for. Whether or not Non-Fungible Tokens are here to stay, they have become a new aspect of the cryptocurrency market, and everyone is trying to reap their benefits.
Above all, there’s real money to be made in the NFT marketplace. You can decide to be a collector of these items and sell them at a much later date at a higher price. All in all, NFTs give new meaning to artistry, and prices might be even higher in the future if these tokens stay.