It has become clear that some people are not afraid to spend millions of dollars on NFTs, making them a fantastic way for artists to sell their assets. Recently, in February, millions of dollars were racked by Mike Winkelmann, the digital artist who goes by the name Beeple. First, he made the Nyan Cat meme GIF which was sold for 300 ETH – approximately $568,000 at the time of sale. In March, he made a ground-breaking record of selling the highest paid-for NFT, Everydays, which is a digital artwork, for almost $70 million. https://twitter.com/beeple/status/1458792243674943489?t=PTl4sJ0UW-pFTp9gi7SlBQ&s=19 In this article, we discuss and explore the world of NFTs. Then, explain how simple it is to create and sell your own one.
What Are NFTs?
NFTs, Non-Fungible Token, are digital assets that are either unique or rare. NFTs can be likened to a digital certificate of authenticity. Meaning that NFTs are unique objects of which only one of them, or a rare and limited number of them will ever exist.
How Do NFTs Work?
NFTs work on a principle similar to real-life where artworks like painting, sketches and sculptures, etc, are hung for display. These are later sold at auctions and then the buyer receives all the necessary documents that show they are the buyer and certified owner. https://twitter.com/Sams_Antics/status/1462013157531136005?s=20 In NFTs, all these are available. Only that it exists digitally. Artworks in formats like GIFs, videos, jpegs, mp3s are certified as unique, with no duplicates. They can issue a trail of ownership which is also known as “provenance” in the art world. The ownership is automatically recorded on a blockchain which is a digital token to the networks that underpin bitcoin and other cryptocurrencies. Hence, NFT is unique and can’t be duplicated; it is owned only by the buyer. The transparency in the transaction is owed to the blockchain, a known decentralized finance exchange, with transparent transaction and pricing history which everyone on the platform can track and see while being connected to an internet connection.
How To Create and Sell NFTs
After creating your digital artwork, the process of turning it into an NFT is known as Minting. It is the process that involves creating and assigning a new token on the Blockchain which will only be for that piece, forever. The creator gets a token of the future sale via a built-in commission which is usually within 10-30% on future sales of the artwork. So, if you have digital art and you are ready to dive into the world of NFTs, it is quite an easy process. There is no need for background knowledge of cryptocurrencies. The most popular blockchain service for NFT issuance is Ethereum. However, there are a lot of rising blockchains with increasing popularity including Binance Smart Chain, Flow by Dapper Labs, Tron, EOS, Polkadot, Tezos, Cosmos and WAX. You’ll then have to decide which blockchain you’ll want to use for the sale. Note that each blockchain operates its own NFT standards of interaction with different wallets and marketplaces. Any tokenized NFT issued on Binance Smart Chain (BSC) will only be sold on platforms that support BSC assets. Hence, any blockchain you decide to use has a particular NFT token standard and matching wallets. To use any of the ETH marketplaces listed below, there is a fee attached to it. It is usually paid in ETH to pay transaction fees, which is equivalent to $50-$100. Below is the list of marketplaces that provide the tool needed to connect a wallet and convert a file into an NFT. They are:
The main focus will be OpenSea. This marketplace is the largest NFT marketplace. Once you understand how OpenSea operates, you’ll understand others easily. The following steps below are what’s needed to create an NFT on OpenSea (Mobile version). Before going on to the marketplace, you’ll need the following:
- Set up an Ethereum Wallet
- Purchase a small amount of Ethereum
- Connect your wallet to an NFT Marketplace
Visit Opensea website
Then click “Create”. Afterwards, you will be asked to connect an Ethereum wallet. After linking your wallet, choose “My Collections” and click on the “Create” button. The window will bring detailed steps and procedures for you to upload an image for the new collection, its name, and description. At this point, you are creating a folder for your NFTs. After that, you can proceed to create your NFT by clicking on the “Add New Item” button. You will get a notification from the Ethereum wallet to sign the message again. After everything is certain and ready, click the “Create” button at the bottom and confirm the creation of the token via Ethereum wallet. The NFT will show in your collection. Now you have your first NFT!