What is NFT, how to buy, produce and sell it?

After Bitcoin and Blockchain, NFT is another word that has entered our lexicon. The buzzword is everywhere and people are wondering what is NFT and what is it for? Well, there really isn’t a one line explanation. That’s why I bring you a complete explanation about NFT, its use in digital art and much more.

So without wasting time, let’s get to know everything about NFT (Non-Fungible Token) in detail.. Here I have mentioned all the questions people have in mind regarding NFTs.

First off, let me give you a clear definition of NFT and what it stands for. NFT stands for Non-fungible token. Fungible by its very definition means something that is mutually interchangeable. For example, you can swap a $10 bill for another $10 bill or swap it for two $5 bills. In both cases, the value remains the same and you will have no problems exchanging the money. Here money is a fungible object because it can be exchanged without its value decreasing.

What is NFT?

So when I say Infungible, I mean something that cannot be exchanged for a similar item of similar value. To give you a simple example, if you want to replace the Mona Lisa painting in the Louvre with another print of the same image, will it be the same? And above all, will it have the same value? The answer is no. Here, the incomparable Mona Lisa painting is a non-fungible item that cannot be exchanged for another item with an identical appearance.

Uniqueness is key here. A non-fungible object is therefore something unique and authentic. Something that has value for its authenticity. Now we come to the symbolic part. A token is a 40-digit string of words and numbers that contains information about the original artist who created the masterpiece, the current owner of the item (there can only be one), and the current price of the item. This information storage is coupled with Blockchain technology which cannot be changed in any way due to its decentralized system.

Finally, when you put the three words together, NFT stands for an incorruptible token which contains ownership information of a unique and genuine item. The NFT is essentially a certificate of ownership or authenticity. This is the general definition of an NFT, but if you want to get the full picture of NFTs, you need to understand the concept using digital art as an example, which I covered in the next section.

What is the use of NFTs in digital art?

Many must wonder what is the use of NFT in digital art and why is it making so much noise? Well, as I explained in the previous section, the NFT is a signature of authenticity and provides that authentic stamp of approval on the web when it comes to digital arts. We all know that in today’s world everything can be faked and people can pass off other people’s work as their own. In fact, it is virtually impossible to find the original creator of an artwork on the web and this is where NFTs come into play. NFTs.

NFTs allow digital creators to place their works in the public domain without having to worry about proving their ownership or authenticity. Digital artists can generate an NFT for their original work and auction it off to another person while retaining information about the original creator, current owner, and current value. The best part about NFT is that whenever digital art is sold to another person, a share of the value will be passed on to the original creator. The NFT is therefore an excellent proposition for digital artists who want to make money with their works..

The beauty of NFT is that it is no longer limited to paintings, but now people are using it to buy digital collectibles of all kinds. For example, Jack Dorsey launched an NFT auction on his first tweet, which is currently worth $2.5 million.

What is the link between Blockchain and NFT?

I explained it above Blockchain technology is the foundation upon which NFT is built. We already know that the Blockchain is infallible and that it is heavily used in the management of different cryptocurrencies. Every transaction made by NFT is recorded in a public ledger which means that the whole system is very transparent. Another aspect of this technology is that it creates a chain, meaning that everything is traceable back to the original creator.

One thing to note is that you can only buy NFTs with cryptocurrencies and specifically Ethereum. Currently, Ethereum is the market leader in issuing and managing NFTs due to its head start. However, some services also accept bitcoins for buying and selling.

A brief history of NFTs

Now that we know the NFT in detail, let’s find out how it was created. First of all, the reason why Ethereum has an edge is that they are the ones who started this project with their new NFT blockchain system called ERC-721 in 2015. Later, Ethereum brought ERC-1155 and advanced technology before Bitcoin and Flow could rise.

In what was the first introduction of NFTs to the masses, Ethereum introduced a blockchain game called CryptoKitties in 2017. In this game, players can buy, collect, breed and sell virtual cats using Ether (the cryptocurrency of Ethereum). At the time, the best-selling cat cost $117,712, which was mind-blowing. Taking this cue, Ethereum has incorporated the NFT system into their cryptocurrency and they are now leading the market.

To give you some numbers, in 2018 NFT had a total market share of $50 million; in 2019, it reached around $150 million, and in 2020, the NFT market soared to a whopping $338 million. Now, with the current boom, nobody knows where the market will go from here.

The disadvantages of NFTs

While I’ve discussed the benefits of NFTs, there are some major drawbacks you should keep in mind before investing in a digital collectible through NFTs. First of all, it takes an enormous amount of energy to generate and maintain the system, which makes it unsustainable and has a negative impact on the ecology. This is because, unlike cryptocurrencies, a non-fungible token runs on a proof-of-work blockchain which is less energy efficient. Anecdotally, GPU prices are expected to increase further in the near future due to extreme mining.

Aside from that, critics warn him NFT is a bubble, and people who buy a strange GIF or collect a rare music video for such a high cost will collapse. Experts say that rare paintings and collectables don’t just hold their value because of their artistic character, but also because there is an established public that wants to own and collect rare paintings or a work of art that no one else owns.

Experts point out that those who buy digital artwork are not paying huge sums because they appreciate the art. Instead, they want to create a money-making bubble by reselling it at a higher price. It’s worth noting that the digital world doesn’t have a shortage of artwork, unlike physical masterpieces, and prices will likely drop when the bubble bursts.

How to buy NFTs?

To purchase an NFT, simply go to one of the NFT Marketplaces and make a purchase. However, there are a few things you need to consider before making your first NFT purchase.

First, you need to make sure your cryptocurrency wallet is NFT-compatible. Next, you need to see which market you want to buy from, as well as the cryptocurrency required to buy the NFT you’re interested in. For example, while Ethereum (ETH) is a major player in NFTs, there are exchanges that use other cryptocurrencies as well. So make sure you have enough of that currency to pay for the unique digital artwork you want.

Some of the NFT marketplaces you can check out include OpenSea, Rarible, Mintable, Nifty Gateway, etc.

How to sell NFTs?

If you have a digital artwork or other content that you would like to sell as an NFT, you can also do so on the NFT Marketplaces. While the details may differ, all you need to do is upload your digital work, provide insight into how it was created, and more. and set a price for your digital file.

So your NFT can be bought by people who want to buy NFT. Every time your NFT is sold, you get paid for your work. Note, however, that some marketplaces charge a fee for hosting and selling your digital file. So make sure you read the fine print carefully before choosing the market where you want to sell your NFT.

How to produce an NFT?

Setting up NFTs is pretty straightforward once you’ve completed the initial setup. The hardest part is figuring out the rest of the process. Basically, you’ll need a wallet that can be used with NFTs, such as MetaMask.

Once you’ve created your wallet, you can connect it to the platform you want to sell your art on (like OpenSea, Rarible, etc.). You can then upload your digital artwork to the platform, choose a price and start an auction.

However, things are slightly complicated. On Rarible, for example, you’ll need to pay a small fee to have your artwork listed for sale. Ensuite, vous devrez payer une sum supplémentaire pour que votre œuvre soit convertie en NFT, puis, une fois votre NFT vendu, Rarible vous facturera également une commission, ainsi qu’une sum pour le transfert de la cryptomonnaie du portefeuille de l’acheteur au your.

Generally, creating a non-fungible token is easy, but selling it takes some work. So make sure you have enough time before you start and don’t set the price too low, otherwise you risk losing money by selling your works.

Verdict: Where is the NFT headed?

It was a comprehensive explanation about NFT and what it means for digital art and other digital collectibles. While NFT adds a new dimension that can help verify authenticity, I think the current craze of owning an exorbitantly priced digital item is misplaced.

It’s a great technology that can have a huge impact on the music industry and other creative professions. It will certainly reduce intermediaries and artists will be able to reap the rewards directly from consumers.

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