The questions regarding what NFTs are and why they seem to be the rave of the moment seems to quadruple every nanosecond and if converted to some source of energy, say mining, I’m certain would be efficient to mine Bitcoin for the next couple of generation.
Without further Ado, NFT means Non-fungible Tokens. Non-fungible means that it can not be traded for something else. I know you still do not understand. Let’s break it down here.
NFTs are materials or tokens that are built cases or have been given the quality of cryptography on the Blockchain. Hence, they maintain a unique set of identification codes, metadata that makes them distinct and cannot be traded or exchanged at an equivalent rate with another material or token. They cannot be replicated
Far from the belief, most people have about NFTs. NFTs can be real life assets like paintings, photographs, Songs, Texts, real estate etc. It’s just a matter of tokenizing real-world assets moving them to the Blockchain, so they can be bought, sold and traded efficiently. This in turn reduces the risk of fraudulent mismanagement of original pieces. More or less a copyright kind of protection (Just that copies don’t work here)
These NFTs remove the need for intermediaries by connecting the art provider or artist to the market or audience directly and creating new markets too.
HOW TO CREATE AN NFT
1 Choosing Your Item
Determine the asset you want to turn an NFT. It could be a painting, document, music, art, photograph, graphic design, Social media content, the possibilities are limitless. Ensure you have the intellectual rights over the asset of your choice to avoid getting into legal troubles.
2 Blockchain Choice
Since all of this runs on the Blockchain, it is essential to choose your most prefered Blockchain to mint your NFT on. It could be Ethereum, Polkadot, Cosmos or Binance Smart chain, to mention but a few popular ones.
3. Setting up your Wallet
These NFTs are investments so they need to be funded. A Cryptocurrency wallet that supports the Blockchain you chose should be used to fund your NFT project. So Dear artist you might want to buy a few Cryptocurrencies to do this. You have access to digital assets through your wallet
4 Choose your market Place
After creating a wallet which is a fast easy step next thing is to choose your marketplace cos your assets need to be sold. Or you need to buy too. A few popular market places for Cryptocurrencies:
OpenSea, Larva Labs/CryptoPunks, Axie marketplace, NBA Top Shot Marketplace, SuperRare, Foundation, Nifty
Different marketplaces are good for certain NFTs so prior research is a good headstart.
5. Upload your NFT
Uploading your NFT should be the simplest part of it all cause in every market place there are step by step procedures for turning your MP3, GIF, JPF, MPEG etc. assets into NFT
6 Scaling Process
This involves monetizing your NFT and it depends on the platform.
Either you sell at a fixed price or you set a Timed Auction or an Unlimited Auction.
If done right. And under the right and appropriate research and market-creating an NFT is quite a profitable investment than can go a long way to breed multi-million asset owners on the Blockchain
Non-fungible tokens are one-of-a-kind bits of data recorded on a blockchain. Digital art, music, video clips, and tickets are just a handful of the digital goods being transformed into NFTs. Some believe that this is another short-lived trend in the crypto space, while others believe that NFTs will drive the digital economy. Because the technology is still in its early phases, we must wait and see how it develops.
This article was inspired by Scallop
Scallop is a decentralized finance ecosystem designed to provide users with a faster and more effective solution to manage crypto and fiat assets in one place. Scallop aims to bridge the gap between decentralized finance (Defi) and traditional/ centralized finance (Cefi) by bringing digital assets into widespread use.