NFTs are the most famous thing in the digital economy. Non-fungible tokens have taken the economy by storm. The digital assets are saleable with the proof of ownership now and importantly these items are fetching millions of dollars. Alongside, the IT industry is reshaping the trends and shifting the focus to the blockchain-enabled NFT. Not essentially, everyone is required to take help from any NFT token development company for bidding and selling over the platforms. For tech-savvy professionals, it’s a smooth road, however, non-technical creators too can mint and sell their NFT work without any hustle.
Here we will go through all the knowledge around NFTs and how can you mint your saleable digital asset tokens. So, let’s understand what this hype is all about?
Before raking up the details of digital tokens, let’s go through a quick answer set for the NFTs:
What is an NFT?
NFTs (Non-fungible tokens) are unique digital assets that represent real-world objects such as art, music, event tickets, fashion items, and in-game assets, etc. NFTs are built over blockchain-based smart contracts that verify the ownership of the assets. NFT and Cryptocurrency relies on the same blockchain and therefore any blockchain development company can deliver an extensive range of blockchain-enabled services such as NFT creation, NFT marketplace development, and NFT smart contract audit, etc.
- Invented to convey that digital item is original and authenticated.
- A popular way for buying and selling the digital artwork.
- Different from the cryptocurrency but these are encoded using the same software which is used in encrypting cryptocurrency.
- Bought and sold virtually with cryptocurrency.
- Acts as the certificate of authenticity, which shows that a particular asset is unique.
- The first most popular NFT was “monetized Graphics”
Fungible Versus Non-Fungible
The below-mentioned table will represent the difference between the fungible & non-fungible tokens, have a look-
Fungible tokens are things, which are transferable and can be divided into several chunks.
E.g. Currency notes & Bitcoin: You can swap bitcoin for another bitcoin, where you can gain or lose value.
Non-fungible tokens are tokens that are one-off assets that cannot be changed or theft.
E.g. Two houses have different values, so cannot be swapped. Likewise, you cannot change an NFT for another NFT, as each has a different value
How NFT Works?
Before developing your own NFT, it would be great if you get an idea about how does it work? It will help you to run it effectively in the marketplace:
1. For Artists
Artists can earn money in royalty whenever NFT is sold. Artists earn from the popularity of the art. It provides them with a proper approach to market their artwork.
2. For Buyers
How NFT works in the favor of buyers? Get to know through the following points-
- Buyers of NFT get the signature of proof for owning the art.
- Buyers get limited usage right.
- NFT works like a collectible. You can buy it for reselling or keep it for yourself.
3. NFTs in the Real World
Real-world assets are connected to NFTs as a verification.
- Cryptokicks is a method launched by Nike for verifying the sneaker’s authenticity with the NFT.
- Marvel has launched the NFT for Marvel Collectors.
NFT Sales Examples:
- NFT for Spiderman was sold for more than 4 million dollars.
- Cryptokitties and Cryptopunks NFTs have sold for over 1 million USD in recent times.
- The 5000 daily drawings made by digital artist Beeple, was sold for a staggering $69.3 million.
4. NFT Use Cases
Check out some of the real-world assets, NFTs are used for. These are as follows-
- Crypto Collectible
- Software License Management
- Asset Lifecycle Management
- Content Subscription
- Trading Marketplace
- Real Estate
- Music etc.
Read Also: How Much Does It Cost to Develop An NFT Marketplace?
Steps to Create Your Own NFT
Recently, an NFT gift was sold at $60,000 in an online auction. Isn’t it surprising? You would be flabbergasted to know that Jack Dorsey, Twitter’s founder sold his first-ever tweet “Just setting up my first tweet” for $2.9 million. NFT gives a blockchain-based token for collectibles or an art piece, where everyone can see the owner of the art piece. These pieces of digital art are adaptable without losing information and transparency to the transactions. If your artwork is a complex asset, you may need to hire NFT developers, but for simple and less sophisticated pieces, minting NFTs is not much complex. Here let’s understand the step-by-step process to create NFT-
Step 1: Buy Some Cryptocurrency
First, you need the platform for minting the NFT and every platform charges some fee for letting you mint the NFT. The overall process is simple, buy some crypto, pay the fee and bob’s your uncle, NFT is ready for auction. Most of the platforms preferably take charges in Ether, which could go less with several NFT platform development projects in a row. Being the most popular blockchain network, NFT is the most powerful contender or collection of Decentralized applications.
On the other hand, the gas fee is quite high. Ether is the native cryptocurrency of Ethereum, where NFT was launched the first time. Alongside, popular marketplaces such as OpenSea have started working with other blockchains as well. Other options to choose for minting NFTs are Tezos, Polkadot and Tron, etc. However, here we will discuss in terms of ether.
The value of ether is also fluctuating like any other cryptocurrency. By 2021, the value of 1ETH gone from under$1000 to more than $4000. The currency value changes every few hours because of various peaks and troughs. For buying Ether, you need to create a digital wallet and connect it to the NFT platforms. There are many digital wallet services where we are using MetaMask, for illustration purposes. Metamask is available as the browser extension and app.
Step 2: Create a Digital Wallet
The first step you need to do is to tokenize your asset is setting up the software wallet, like your digital wallet which can indirectly hold NFT. You can download the app from metamask.io. You need to keep track of the seed phrase whenever you wish to recover the wallet.
Here you will be asked for creating a wallet and seed phrase (a list of words for storing the blockchain information). Create a password, agree to the terms, and plow through the security measures for setting up the accountant.
Wallets don’t hold NFT or cryptocurrency, rather they store the private key, that is needed for the authorized transactions. NFTS is kept on the blockchain with the ID which designates ownership. Remember that wallets don’t hold cryptocurrency or NFTs — they store your private key which is needed to authorize transactions. All cryptocurrencies and NFTs are kept on the blockchain with the wallet ID designating ownership.
Step 3: Add Money to Wallet
Once you have set up your Metamask or any other wallet, the next you need to add ETH. Adding money is easy, click on the buy button and select the given option “Buy ETH with Wyre.”
You will see the screen for buying ETH either through Apple Pay or a Debit card.
Step 4: Connect Wallet to NFT Platform
Most crypto wallets work in the same manner. You can work with any of the wallets. Deposit some ETH in your crypto wallet and move to the NFT platform for creating NFT. There are many NFT platforms. The factors for choosing the platform are authenticity, minting fees, and popularity of the platform. Here we will take the example of OpenSea.
Step 5: Tokenize the Design
After creating the Metamask, you can create NFTs. There are several reliable NFT marketplaces available, whereas many IT companies have started their team with the deep knowledge of ERC-721 and ERC-1155 standards, IPFS protocols, and smart contracts to deliver the user-centric NFT platforms; another battle rising between NFT marketplace development companies. Anyways, here for knowledge purposes, it is always better to start with the reputed and most trusted platform. We are using OpenSea for our knowledge article.
Let’s navigate to opensea.io and click the create button, where you can upload the files, available for tokenization. It is an easy process to create an account in the open sea. Connect your Metamask wallet with opensea.io and accept all the terms of services if you are over the age of 13.
- You will see wallet icons in the top right corner.
- Click on the wallet icon, where you can see supported wallets.
- Select your wallet, Metamask in our case.
Step 6: Mint Your NFT
NFT minting is a simple process. Below are the steps-
- Set up your wallet: Set up a wallet of your choice. Here we have set up our Metamask wallet and connected it with OpenSea.
- Create the collection: Next is to click over Create and set up the collection. It’s important to add social links, give descriptions and profile images along with the secondary sales fee.
- Add NFTs: Voila, you are about to create your NFT. Create the name of your NFT and then upload the tokenizable digital assets with defining properties and statistics for distinguishing them from the collection.
You can determine how many copies you can create and set the retail price for each token in the store.
Step 7: Set Up an Auction and Sell Your NFT
In the next part, you decide, how to sell NFT. Selling work is the goal of creators. You have three options to choose from:
- Fixed price: This option lets you set the price and sell someone instantly.
- Unlimited auction: Here, people can bid on your NFT. The process goes on until you accept the bid price.
- Timed Auction: This kind of auction takes place at a certain point in time. This is a widely used process and recommended by NFT token development service providers. And here we will take the example of the same.
Next, the tricky thing comes is the price determination. You cannot set up the product for too little, or you cannot overprice the collectible. Both cases are not favorable. We can set up your price at 1ETH and can give seven days for bidding.
Further comes an option for unlocking once bought. Unlock once purchased, allows the buyer to receive the high-resolution version of the digital art piece, whereas the further material is received via a download link.
Step 8: Describe NFT
You can add details to the listing. For increasing the chance of higher bids, the description of NFTs is important. Also, you need to determine the percentage of royalty you need to claim on the resale of tokenized art in the future.
Setting up the royalty fee is much of a balancing task. You cannot give a high percentage of reselling royalty, nor can you give too little percentage, which will give low output. You can add properties to the file, and you are done.
Popular Ways to Monetize NFTs
There are three routes, where you can get financial benefits:
- Create: For artists and influencers, it is profitable to create their own NFTs.
- Scalp: Scalping is a popular term in the crypto industry, which can give a high return in the end.
- Invest: For most people, the best way to cash in one of the NFT is to invest in the platforms such as OpenSea, Rarible or Nifty Gateway. Simply put, those who sold picks and shovels in California Gold Rush became rich, whereas most of the miners returned empty-handed.
Read Also: A Complete Guide of NFT and Working
Why Blockchain NFT Development Is a Lucrative Idea?
When you purchase an NFT, you get ownership of the content, but the digital artwork can still be viewed, listened to, and saved by anyone over the internet. This does not decrease the value of NFT, unlike the real world.
More, the file is shared over the internet, more value it accrues.
NFTs are useful for owning something which cannot be copied. Whereas creators still retain the rights for reproduction, like physical artwork. Example: Everyone can buy the MF Hussain painting, but only one person can buy an original painting.
The technology rises when it gives solutions like never before. NFT token development services exploded in 2021 due to the same reason.
Wrap Up with the Future of NFT
The market is eying deep towards NFT, and the huge popularity among the folks gives some strong future for NFT management companies. These tokens are a replication of tangible assets on blockchain that can be auctioned, transferred, and sold out rightly. Rich investors are fueling NFTs and hopefully, NFT is not going away soon. Here, NFT allows to sell rights for use with retaining the ownership.
Anything creative such as Game Sprites, recorded music, clicked pictures and prominent accounts or everything you can think of could be NFT. The above article discusses all the details of the steps for creating NFT and postulates the less need to hire blockchain developers debunking the common myth. NFTs are a great possibility for the owners, where terms are continuously being modified as the demands meet timely deliveries.