If I tell you a digital painting was recently sold at an auction house for a staggering sum of $69 million, the bidding winner will not even receive the print!
Does it make sense?
It totally does in the new hot cryptocurrency trend “non-fungible token”, and this is exactly what we are going to explore in this article.
As technology develops, it makes our lives more manageable with impressive gadgets and tools. It has been helping people in different ways, especially in the midst of the COVID-19 Outbreak.
As people started working from home, and students began attending online classes, we saw an influx of online businesses and solutions where individuals were more inclined to invest in different online companies.
Many people started online selling on various social media platforms since they’re very much accessible to everyone. They found ways to have resources that will help them survive this pandemic.
At the same time, technology gave people an opportunity to invest in digital currency, in particular, cryptocurrency. It is a digital currency that can be used to buy goods and services in online transactions. Even before the pandemic happened, people were already aware of cryptocurrency.
Today, cryptocurrency has evolved through time and the most recent shape it took is non-refungible tokens that are worth millions of dollars! Let’s see how you can create and market them.
What are Non-fungible Tokens (NFTs)?
Non Fungible Tokens (NFTs) are a kind of Bitcoin. The difference is a person can trade a Bitcoin, and it represents real money.
On the other hand, NFTs are a token that will say you possessed something. It is more like an art piece.
A person can also trade it for other unique, different art pieces.
Non-fungible Tokens can be used in a virtual world in types of tangible and intangible items. The following are NFTs:
- Virtual Items in video games (skins, weapons, avatars, and virtual currency)
- Collectibles (such as digital trading cards)
- Virtual land
- Tokenized real-world assets (such as cars, racehorses, designer sneakers, and real estates)
- Video of iconic sports events or moments.
This art piece can be copied, screenshotted, and downloaded by anyone on the internet. However, the concept of NFT art is agreed-upon value and ownership.
That’s why, even though all people downloaded it, the creator is still the owner of the piece.
NFTs are a digital asset. In the real world, people can get ownership of creation through patents.
Blockchain is a system that records information. If a person bought an NFTs, the information about the artwork and the contract is included in the blockchain.
With that, it proves that the artwork is yours.
Creating Non-Fungible Tokens (NFTs)
You don’t need profound knowledge about cryptocurrency or the general industry when creating an NFT artwork. It is a straightforward process.
The first step in creating an NFT artwork is choosing which blockchain you will use to issue your artwork.
As of the moment, Ethereum is the leading blockchain for NFTs.
Besides Ethereum, other blockchains are becoming popular. Below are the other blockchains services:
- Binance Smart Chain
- Flor by Dapper Labs
All blockchains have their own NFT standard, marketplaces, and compatible wallet services.
For example, if you decided to create your NFTs with Binance Smart Chain, you can only sell your artworks to the platforms which support the blockchain service.
This means that a person cannot sell his/her artworks to a marketplace that supports other blockchain services.
For example, VIV3 is a Flow marketplace, and OpenSea is an Ethereum NFT marketplace.
Make sure that you will choose the right market for your artwork. The chosen marketplace will be the one that will show the piece of art to the world.
They will be the one that will sell your art. The artist or owner will get a fair commission from it.
Now, in creating your NTFs, you have to connect your crypto wallet to a marketplace. You will need your logging-in details in the form of a wallet address.
When you’re done logging in, you can go to the “Create” part of the marketplace.
Next is to upload your artwork. After that, you have to click the right buttons to finalize creating your NFT Artwork.
Before you know it, you already have your NFT artwork ready to explore the virtual world.
How to Make and Sell Non-Fungible Tokens (NFTs)?
It is easy to make NFTs, especially for an artist, content creator, and just a person with a creative mind.
NFTs can be a doodle, a comic strip, or any animation. One famous example of NFTs is Nyan Cat.
It is an animated cat with a Pop-tart body. It was sold as an NFT for $580,000.
Maybe the obsession of people with cute cats leads Nyan Cat to gather a lot of attention. NFTs is promising for animators and artists to have money.
It is perfect for the setup most people have today. Because of the online arrangement we have today, NFT is a way for artists to create and sell their art.
Making the Non-Fungible Tokens (NTFs)
Making your artwork is not that complicated. You have to use a suitable blockchain.
It is better to compare the different blockchains that have supported marketplaces. Like what is said above, Ethereum has the most extensive NFT system.
Since Ethereum is the most prominent blockchain, let’s focus on making your artwork in this system.
First, it must have an Ethereum wallet that supports the Ethereum-based token standard (ERC-721). These are the following:
- Coinbase Wallet
- Trust Wallet
Next is you have at least $50 to $100 in ether. To have an ether, you can purchase it from a cryptocurrency exchange.
However, if you’re using a Coinbase Wallet, you can buy ether from their platform.
It accepts the British pound, U.S. Dollars, and other fiat currencies. You have to have these before uploading your artwork.
Once you have these, you are now allowed to connect your wallet to an NFT-centric platform. You can also directly upload an image that will turn into an NFT.
Listed below are the NFT marketplaces that support Ethereum:
These marketplaces also allow people to create their NFTs. Rarible, Mintable, and OpenSea have created buttons that will enable an artist to upload their artwork.
They can add names and include a description of their works.
These marketplaces also have an option to include the unique things that can be seen in your artwork. With this, it can increase the scarcity and uniqueness of the NFT.
The creators or artists have the opportunity to have unlockable content. This means that the purchaser is the one that can view the content.
Now, you’re probably wondering if you need to buy something to make NFTs. On OpenSea, you don’t have to pay anything.
On the other hand, some platforms charge a fee. On Ethereum-based platforms, they call their cost “gas.”
Ethereum gas is needed when someone will perform or do something in the blockchain.
For example, if a person will add another NFT to the marketplace, it requires a certain amount of gas. Now, the amount of gas varies because of network congestion.
When the number of people transacting is higher, the price of gas fees is more elevated.
An essential tip, gas fees are cheaper during the weekend. It is the time where there are few people transacting value in the network.
How does the process work on OpenSea?
Click on “create” located at the top right of the page. It will bring you to another page wherein it will ask you to link to your Ethereum wallet.
You have to enter the password for your wallet, and it will then link the marketplace to your wallet.
The next step is for you to give your digitally signature on the generated message to prove that it is your wallet address. Then, click to proceed.
The next step is to click “create” at the right, then choose the “my collections” in the options.
After clicking it, select the blue “Create” button, which you can see below.
After that, you’ll see a window pop up to help you upload any artwork that you want to post. You can add the name and description of the painting.
After assigning a photo for the collection, that will show up in the front (blue arrow). Then, you will need a banner image to the page. You can add it by clicking on the pencil icon which you will see at the top right corner (red circle).
The page should be like the photo below. After that, you can create the first NFT in your account.
Select “Add New Item” (blue arrow), and sign again with your wallet.
Once the creator is finished, click on “create” located below. Then, once more, give your signature using your wallet.
This will confirm that you’ve successfully created an NFT. Any artwork should appear in the collections you’ve made.
How does the process work on MetaMask?
MetaMask is a popular browser extension. It is a way of keeping the Ethereum or other ERC 20 tokens. The extension can be viewed in different browsers, and it is secure.
It also allows other web applications to interact with Ethereum’s blockchain.
First, install a MetaMask as an extension in your browser. This tutorial is made with the use of Google Chrome. An individual can look for it in another browser.
Click the “Add to Chrome” button (red arrow). This will add MetMask as a Google Chrome extension.
After clicking the “Add to Chrome” button, a window will pop up. Click the “Add extension” button.
After clicking the “Add to Chrome” button, a window will pop up. Click the “Add extension” button from the window.
After that, you can now have a MetaMask as a Google Chrome Extension.
The next step is to create an account. The first-word thing to do is open the MetaMask extension. Click the MetaMask icon from the upper right corner of the browser.
You will be asked to install the latest version, click the “Try it now” button, then click the “Continue” button.
The person will be required to create a new password. You have to click on “Create.”
After creating a password, you have to click the “Next” button and accept the Terms and Conditions.
When the window shows this (shown above), click the “Reveal Secret Words.”There will be 12 crucial words. It is not a good idea to store digitally, so write everything down. differently
Verify the secret phrase by organizing the words in order. After that, click the “Confirm” button.
After creating an account, you have to deposit funds into your account.
Click the “View Account” button.
After that, you can now see your address and share it with other people.
There are some other methods to buy coins in MetaMask, but you can do it in different ways. You just have to have your address.
Selling the Non-Fungible Tokens (NTFs)
On the contrary, selling your artwork is not that hard either.
The first is to locate the sell button in your collection. When you click the sell button, the pricing page will show up.
The pricing page will show the conditions of the sale. This includes if the marketplace will sell it in an auction or just sell in with a fixed price.
The most common cryptocurrencies are ether and other ERC-20 tokens. You can sell your artwork using these.
However, some platforms only support native tokens of their blockchain. Such as VIV3, which is a Flow marketplace and only accepts FLOW tokens.
In OpenSea, there is an “edit” button that gives you an option to create a program in royalties.
You can select which kind of ERC-20 token you’d like to accept from the purchasers. Royalties are essential in the process.
They are the one that allows the creator to get a commission. This happens every time the artwork is sold to a new person. Commissions enable creators to earn money.
Buying Non-Fungible Tokens (NFTs)
People would think that purchasing an NFTs may be a crazy idea. But it is a good investment, especially now where people are usually online.
However, there are things you need to consider:
- The marketplace you intend to buy the NFTs.
- The wallet you need to download and use to connect with the platform. This will help you to get the NFTs.
- The cryptocurrency that you will need to purchase the NFTs. This will be a requirement to fund your wallet.
- The specific time you want to buy the NFTs.
Certain NFTs are only available on particular platforms. One example of this is the NBA Top Shot packs.
To be able to purchase this, you have to open a Dapper wallet. Then, fund it with the use of USDC stablecoin or any other currency options.
It is also an example of a pack and art drops. This is a method to sell scarce NFTs, especially to hungry buyers.
The buyers are usually required to sign up and fund their wallets before the day of dropping of NTFs. If they do this, they will have an opportunity to buy the NFTs.
What’s so exciting about packs and art drops is that it only lasts for seconds. That’s why buyers must be ready beforehand.
Marketplaces to buy Non-Fungible Tokens (NFTs)
Listed below are the most popular NFT marketplaces in the year 2021:
- Nifty Gateway
- NFT ShowRoom
- Axie Marketplace
Living in a Digital World
In the growing world of technology, everything is online. Work, classes, selling, and buying goods are all online too.
This is the new normal for most of us, especially for artists. Non-fungible Tokens (NTFs) are the new way to share to the world your creation.
The sudden craze of people for this helps artists to earn money and do the thing they love.
Since the virtual world is developing from time to time, it is the best time to participate. Some blockchains recognize competition and produce better services.
There are a lot of platforms where we can have NFTs. That’s why it is an excellent time to learn and understand this.
NFTs are something that can get us through boredom but can also affect our financial resources if not handled well.
People probably think that it is not the best to buy intangible things. But even before NFTs, gamers had already started buying intangible things. Skins, avatars, and weapons are examples.
Music from Spotify and other platforms is also an example of NFTs. Movies on Netflix are another example.
With just that, we can say that we kind of know how this works. We are not new to this stuff because we already have a culture in buying these kinds of stuff.
We must understand and think about it. It is a good investment, significantly that it helps us in our lives. NFTs is worth the risk to be part of this community.
Loved this article? Read more insightful posts here:
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Let us know in the comments if you have learned something new today. Feel free to share any other valuable or interesting information that you might have about non-fungible tokens!