What Are NFTs and How Do They Work?

NFTs (Non-Fungible Tokens), unlike fungible tokens, are the unique data storage units that can’t be changed or duplicated. As we all know, Cryptocurrency is nothing but a digital currency; moreover, the term NFT provides a unique way of representing real-life entities such as videos, audios, pictures, etc. These digital format files or entities, are brought about with the help of blockchain technology through the generation of verified and public proof of ownership. Amazing right? Now you might be wondering how NFTs represent real-life entities like audios, videos, pictures, etc, unique from anything worldwide. Very intriguing right? let’s dive into it and get to know about it from its history and all the way to the most expensive NFTs.

History of NFTs:

NFTs were inspired by a “colored coin” first released on the Bitcoin network in 2012-2013. Coloured coins are blockchain-based tokens that reflect real-world assets and may be used to establish ownership of everything from precious metals to vehicles to real estate, as well as shares and bonds.

How to Create Your NFT?

The major platforms for NFT creation are OpenSea and Rarible, which allow their customers to submit their artwork and show their collections without any prior knowledge of blockchain technology or the workings thereof. Rarible is a leader in overall sales even though OpenSea offers additional options compared to Rarible. With OpenSea exchange for example, you can create your own NFT webstore.

Take Note: There will be some upfront fees before you begin. NFTs are based on a blockchain, most often Ethereum’s. Using blockchain has a cost, a network charge known as gas, which you will have to pay to tokenize your art.

Following These Simple Steps Can Help You Create Your First NFT:

    • Set Up Metamask
      To create your NFT, you have to, first of all, set up a software wallet known as Metamask. To create a wallet, all you have to do is go to metamask.io to download their app, or you can also add their chrome extension. Once you do any of the ways mentioned above  for setting up a Metamask wallet, you will receive a seed phrase that you have to keep track of as that’s the only thing with which you can recover your metamask wallet in the future. You can also check out the video below on how to setup your Metamask wallet the right way.

A key thing to remember is that it doesn’t store cryptocurrencies or NFTs, but the private key, which helps differentiate you from the rest of the users. With the private key  or wallet ID, you could only be identified for what blockchains and NFTs you own, and there is no other way for identification in that regard.

  • Tokenizing Your Art
    Once you are done setting up metamask, now you will be all set to go to OpenSea exchange to link your metamask wallet and start working to create your first NFT.
    Give your NFT collection a name, then click the Add New Item button. You may now upload the file you wish to tokenize and customize it with attributes and statistics to set it apart from the rest of your collection.

The last step is to set a selling price and mention the number of copies you will need of that uploaded file. Once you’ve created your NFT, now is the time to sell it. How can you do this? Let’s take a look.

  • List on the Marketplace
    To sell your first NFT, you must first give OpenSea permission to sell things from your account. You’ll have to pay a gas cost because this involves a blockchain transaction. You’re ready to start if you send some Ether to your MetaMask. This charge is only required the first time you create an NFT collection.
    Now that you have adequate knowledge about NFT creation and how to sell it let us discuss how it works?

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Why Should You Choose NFTs?

Suppose you’re an artist and you’ve made this excellent piece of art that you want to upload online, but you are worried that someone might download it and claim ownership of the artwork.

Well, that’s where NFTs come into play, to deal with that problem that most of us were facing back in the early days. NFTs help “tokenize” your artwork so that you get a digital certificate of ownership; with that nobody can steal your work and claim it as their own. After all, these tokens can’t be duplicated because thousands of computers maintain them. Let’s break down that concept to make it more straightforward for you. With cash, you can interchange a $15 note for three $3 notes, which will have the same value, but if something is non-fungible, it can’t be interchanged as it possesses unique properties, which a copied version can’t have in common in any way.

Yes, anyone can view and download the image for free, but they do not own it, and they won’t be able to take any benefit or value from it unless they also possess that NFT, which you’ve owned. As an owner of an artwork, you want as many people as possible to download and enjoy the artworks that you can prove you own because this is how the artwork gets admiration and recognition from society. Imagine if a million people worldwide had digital frames in their homes displaying a painting that only you owned or that you created. That is a valuable piece of art cause you’re the owner of it, but still, people can have its million trillions of copies without a minor change in it.

How Much Was the Most Expensive NFT?

In March 2021, The digital artist Mike Winkelmann, nicknamed Beeple’s digital art Everydays: The First 5000 Days, was sold for a record high of $69.3 million, making it the most expensive NFT.

List of the Top-Most Expensive NFTs:

Everydays: the First 5000 Days ($69.3 million)
CryptoPunk #3100 ($7.58 Million)
CryptoPunk #7804 ($7.57 Million)
Crossroads ($6.6 Million)
Ocean Front ($6 million)
Stay Free ($5.4 million)
Replicator ($4.1 million)
The first Tweet ($2.9 Million)
Death Dip ($1.58 million)
Quantum ($1.58 million)

In this post, you learned about some of the most expensive NFTs on the market and learned what NFTs are, how to create one, and what are some of the famous and expensive NFTs. What kind of NFTs are you into? Please share with us below.

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