Today, content creators use NFTs (Non-Fungible Tokens) to fully gain control of their crafts. It has become of of the ways to monetize skills for creators. More people are entering the system, which increases the need to know the concept of “NFTs: A Beginners’ Guide.”
What are NFTs?
NFT is the short form of Non Fungible Tokens. It simply means an irreplaceable, one-of-a-kind object. For instance, the Mona Lisa painting. It is just one on earth, and there is no other original copy elsewhere.
So, Non-Fungible Tokens are digital representatives of elements like virtual avatars, arts, videos, GIFs, memes, and even trading cards.
What does NF (Non-Fungible) Mean?
Also, many ask questions like, “if NFTs are digital, why can’t I just download them or take screenshots?” The truth is that you can download them or take screenshots of them.
However, you are still not the original owner of the NFT. Remember that taking a picture of the Mona Lisa painting does not make you the owner of the art.
Every NFT in the ecosystem comes with a special signature. This signature verifies its originality and any transaction that concerns it.
For example, who created the NFT, who bought it, who sold it, and how much the owner sold it. The ways collectors create NFT files is through a process called minting.
When you mint a digital file, you have created an NFT stored on the blockchain. Blockchain technology will show that you are the owner of the NFT via a distributed public database.
So, anyone can see the NFT and who owns it. Also, the ownership record allows paying the owner royalties for the NFT. Furthermore, the ownership history (from creator to present owner) is called provenance.
This provenance concept is not new. It is very popular in the art world.
How to Buy NFTs
The popular way of transacting NFTs is through cryptocurrencies. However, sites may allow you to pay with debit or credit cards. If you buy with cryptocurrencies, you must open and set up a cryptocurrency wallet first.
Many wallets are available today, but the most accepted for NFTs are MetaMask, TrustWallet, Coinbase, Phantom, Dapper, and Rainbow.
After you have selected the wallet and set it up, you will need to connect it to an NFT marketplace. This marketplace is a third-party digital store that allows you to search for and buy NFTs.
How To Make (Mint) NFTs?
In another article, we will explore NFT minting in detail. But here are the basic steps you need to take to mint an NFT.
- Make up your mind on the type of NFT you want to create.
- Choose the blockchain on which you want to mint the NFT.
- Open and set up your digital wallet.
- Choose a third-party NFT marketplace.
- Upload your digital file to the third-party NFT marketplace to mint.
Once you have minted your NFT, you can choose to store it on that blockchain or sell it via auction or a fixed price. Alternatively, you can decide to give the NFT to your most loyal community members. NFTs have a lot of use opportunities.
Why Some NFTs Have More Values Than Others
NFTs are very valuable and rare, just like most artworks in our real world. People generally sell NFTs in third-party marketplaces, and the bidding price of the NFT is based on how many people demand it.
Why is NFT a Buzzing Concept?
NFTs are very integral parts of the metaverse. It is part of the community building and economic tools of the metaverse. Through NFTs, we get our identities, have new experiences, and engage and socialize with others in the metaverse.
In the future, NFTs will become one way through which people will share, sell, use, and buy virtual experiences and objects. So, beginners need to know the basics.
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