The term non-fungible token (NFT) generally refers to a cryptographic asset on the blockchain that represents an intangible and unique digital item such as a piece of art, a photo, an in-game collectible, a tweet, etc. that cannot be replaced by other assets because it has exceptional properties. Each NFT is unique and limited in quantity and non-exchangeable; It can serve as proof of authenticity and ownership.
NFTs are distinguished from each other by unique identifiers such as metadata and barcodes. Metadata is data that provides essential properties about other data, it allows users to buy or sell objects based on this information rather than the entire object.
NFTs aim to replicate the physical properties of physical items, such as uniqueness, scarcity, and proof of ownership. On the other hand, fungible products are substitutable because of their value, not their unique characteristics.
Prototypes of NFTs were colored coins, indicative of experimental assets created on the Bitcoin network in 2012. The first asset representing a non-fungible tradable blockchain marker was created for the Seven-on-Seven conferences at the New Museum in New York in 2014 as an experiment.
While digital collectibles and industrial NFTs continue to garner the most attention in the crypto community, their potential use cases continue to grow. They extend to fashion, music, academia, tokenization of real-world objects, patents, membership sales, and loyalty programs to common use cases such as digital art and games.
There is also room to combine the benefits of NFT technology with the functionality of decentralized finance (Defi). For example, non-fungible tokens can be borrowed and lent, and they can be used as collateral to secure a loan.
NFTs can be created by anyone interested in selling and sharing their digital creations such as content, art, music, and photography. Here’s a practical guide to successfully jumping on the bandwagon of creating a nonfungible token.
Generating NFT is quite a simple process. It allows users to choose their content and get a crypto wallet. They can easily choose the right NFT marketplace and follow its instructions. After an NFT is created, it is ready to be sent to friends or sold to collectors.
In this blog, we will discuss what is NFT, how it works, and step by step guide about NFT.
How do NFTs work
NFT has two main parts. The first part is non-fungible, and the second part is the token. It is a useful cryptographic resource in blockchain science with an identification code and metadata that range from each other.
We can use NFTs to mark the possession of various things. They help us tokenize art, collectibles, and even real estate. They can only have one valid owner at a time and are covered by the Ethereum blockchain. No one will be able to register possession or reproduce NFTs.
Most successful NFT projects
There are many unique NFT projects. But in any competitive field, there will always be some entries that rank as the best of the best. The following projects have achieved significant success and come up with something unique.
Cryptopunks
Matt Hall and John Watkinson experimented in 2017. They were interested in the union of advanced technology and artistic expression. The result of that curiosity was a program that produced 10,000 (24×24 images) in the style of 8-bit pixel art – over 9,000 images depicting idealized men and women.
But aliens, apes, and even zombies were represented in the rest. Each film also had more or fewer accessories than the others More accessories in one picture – was rare. In 2017, these early examples of the NFT crypto industry sold for between $1 and $34, today rarities can sell for millions.
The most expensive sale is coming in at $11.7 million. The project is one of the first widely recognized examples of an NFT collection. And it also served to highlight how AI can act as a digital paintbrush.
Bored Ape Yacht Club
Bored Ape Yacht Club may be the best-known NFT project of all time. On a technical level, the project initially consisted of 10,000 images, which were later developed as NFTs. This link to the blockchain gives NFTs some special features.
Those who own these NFTs can use them as key cards to access special merchandise, special events, and private parties (with celebrities like Eminem and Snoop Dogg attending).
They are generally seen as a tight-knit club whose members share a single artistic spirit.
NBA Top Shots
Trading cards have always been popular among sports fans. Top Shot NFT gains popularity in the crypto world. The NBA is an official part of the project alongside Dapper Labs. The blockchain used for this is different from other NFTs crypto projects. Instead of Ethereum, it uses the Flow blockchain developed by Dapper Lab.
Digital art and event highlights to Dapper Labs are licensed by the NBA and then they create moments from these assets. Moments are video highlights that are minted as NFTs The NFTs are then grouped as a collection. These collections are grouped as “packs”, similar to packs of sports cards.
Each item in the collection resembles a traditional trading card. Like trading cards, all moments have a degree of scarcity. Some moments are extremely rare, and these have a correspondingly high price.
Nouns
The Nouns project focuses on improving the on-chain avatar community structure. One of the unique elements of the project is that a noun (NFT character) will be created every day, forever.
Another unique aspect of the project lies in the creation of their own DAO treasury, which collects 100% of the funds from all their NFT sales. The treasury is controlled by the founders of the project who will then decide on its future use.
Decentraland
One of the most popular projects of recent times is Decentraland. It is a completely decentralized virtual world where users can create, buy and sell land, avatar wearables, names, and other digital assets.
Moreover, it is the users who own this virtual world and rules it. This is made possible by Decentraland having its own DAO (Decentralized Autonomous Organization). The DAO transfers all rights to control the virtual space to its users.
In November 2021, the platform Tokens.com bought the most expensive land ever in Decentraland’s Fashion Street Estate.
How to create an NFT?
Step 1: Decide what type of NFT you want.
NFTs are versatile—you have a lot of options in choosing which type you want to create. Your options include artwork, event tickets, memes, media and music, games, virtual items, and more. You can even create an NFT for real-life items, such as valuable collectible figures or a photo signed by a celebrity.
They are often in the form of an image, audio (JPG, PNG), or video files, such as MP4, or MOV.
If you decide to create a “simple” NFT, you don’t necessarily need a developer. But if your NFT is a more complex item, such as a game, or has a complex smart contract (terms of sale), you may need the help of a developer.
When creating your first NFT, think about how you can deliver value to your audience. If you already have a business, you can try creating a loyalty card or exclusive promotion code and you can always hire an artist to create custom art for you.
Step 2: Select the marketplace
When it comes to figuring out where to mint your coins, there are plenty of NFT marketplaces to choose from. OpenSea, Rarible, and SolSea are the three of the most popular NFT platforms.
Step 3: Setup a crypto wallet
The next step is to create a digital wallet where you will store your cryptocurrency and NFT. An important consideration you need to make when choosing a wallet is whether it is compatible with the blockchain and NFT marketplace you intend to use to mint your NFTs.
While there is no shortage of crypto wallets out there, most NFT creators use the Metamask browser extension wallet. This wallet is easy to set up and connects to most blockchains used to create and trade NFTs, including the Ethereum and Binance smart chains.
Step 4: Connect your wallet
After topping up your wallet, you need to connect it to the NFT platform that you will use to generate your digital assets. Let us explain the steps you need to take (we’ll use Marketplace Rarible as an example).
- Go to Rarible.com and click the Connect Wallet button on the right-hand corner of the screen.
- Select your digital wallet (MetaMask) and grant permission to view your accounts.
- Click Connect and accept the platform’s terms of service and age verification.
- Return to Rarible’s homepage and click the blue Create button in the top right.
- To sell the same item multiple times, choose between creating a single digital copy of your NFT and creating multiple copies.
- Now Upload the digital file which you want to mint as NFT
- Next, the option will come, how you want to sell your NFT file. It is not mandatory to sell the asset while creating it. You can also put it up for sale and set the minimum price after minting it.
- Choose whether you want to offer a full high-resolution version of your NFT or add unlockable content via a secret download link or webpage.
- Choose Rarible as the collection for NFT.
- Add a title and description for your NFT art.
- Specify a certain percentage of the royalty you want to receive for secondary sales.
- Specify attributes of your file such as color or size in pixels.
- Click Create Item.
- Authorize transactions (pay gas fees) to your crypto wallet.
- Now. Click Confirm and upload the File and Mint Token.
- Ensure contract integration in your wallet (a small gas fee will be charged for creating smart contracts).
Step 5: Finally, create an NFT
After you connect your wallet, you’ll be taken to the page you use to create an NFT (and if you don’t end up there, you can get there by clicking the Create button placed in the top right-hand corner of both platforms).
If you want to create a series of NFTs (“Collections”) on OpenSea, you need to go to your profile picture in the top right, then go to My Collection > Create a Collection. On Rarible, it’s pretty straightforward; you can create one from the NFT “creation screen.”
How to create and sell an NFT for free on OpenSea?
Connect an ETH wallet to OpenSea: First, you need to connect an Ethereum wallet to OpenSea. It can be empty — you don’t need to own any cryptocurrency. Don’t forget to back up your recovery phrase while you’re doing this step. You will need your wallet to confirm certain steps in this tutorial, so keep it ready during the process.
Create an OpenSea collection: NFTs in OpeanSea are created within a collection so you should create a collection first.
Set up OpenSea collection: Set up your first OpenSea collection. You can set images (including logos, features, and banners) and you can now choose a name for your collection, customize the collection URL and add a description of your choice.
Choose the right blockchain: Next, choose the right blockchain for your collection. The most popular one is Ethereum, but if you want to pay a zero-gas fee, choose the Polygon option. Finally, click Create. You need to confirm the steps you took with your Ethereum wallet when setting up the collection.
Start minting NFTs: You can now upload a piece of art (image, music whatever) and mint it as an NFT. You can choose how many copies you want to mint. If you have things like stats or unlockable when you buy NFTs, you specify those things on this page as well.
Congrats! You have finally created your first NFT!
Hi, my name is Brandan Henry, and I’m an NFT, Blockchain, and Research enthusiast, as well as a content writer for NFT-onomics. I’m deeply passionate about exploring the potential of NFTs and blockchain technology. My mission is to educate people on the capabilities of non-fungible tokens and their applications. I stay up-to-date with the latest NFT news and trends, and as a full-time writer, I excel at generating creative, out-of-the-box ideas surrounding NFTs.