What is NFT? How is an NFT created?
You may have often encountered the NFT term recently. Let's take a closer look at the NFTs that have broken the most researched record on Google, which can be sold and bought as a “digital asset” worth millions of dollars.
Non-fungibles tokens mean that there is an entity that cannot be explicitly replaced/replicated. It has unique qualities that make it different from anything else in the same asset class. Just like a painting, a theater play, a house, a video game, a trademark, or a CryptoKitties, which operated first on the Ethereum blockchain in 2017. “What is that CryptoKitties?” Let's briefly explain it.
NFTs are not exactly a new phenomenon. CryptoKitties is a blockchain game developed on the Ethereum network, is one of the original NFTs that allows users to buy and sell unique digital kitties stored on the blockchain.
NFTs are often used to buy and sell digital artworks and can be created in GIFs, tweets, digital trading cards, images, game skin & skills, virtual real estate, and more. NFTs are verified on blockchain and can be also publicly verifiable. On the other hand, NFTs are unique and cannot be interchanged, which means that no two NFTs are the same. NFT are very diverse, but they can represent a digital painting, music, and even a "tweet." For example, Twitter founder Jack Dorsey's first-ever tweet has been sold and led to the becoming value of tweets. This NFT worth $2.5 million. Imagine that you are a collector, but instead of buying an oil painting on canvas to hang on your wall, you get, for example, a JPG file.
How is an NFT created?
Anyone can create an NFT. All you need is a digital wallet, the purchase of a small amount of Ethereum, and a connection to an NFT market, where you can upload the content and convert it into an NFT or crypto artwork. Login in to one of the NFT markets and upload a file. This process is called "printing" of NFT. Whether it is unique, has more than one copy, or is part of a collection is asked. When you take a look at an NFT website, you actually see how easy this process is. Because people are trying to sell dull, characterless things as NFTs.
This Gucci ghost was sold for $3,600. When considering, anyone can earn $3,600 by drawing this ghost, then everybody can create and sell NFTs.
It is supposed that the NFT market will continue to grow in the following years by some popular cases. A bright future awaits NFT, which is used for digital art, virtual land, games, collection, finance, and much more.
How do NFTs work?
NFTs are part of the Ethereum blockchain. Therefore, they store extra information included them. This extra information builds an important part which makes them formed in JPGs, MP3s, videos, GIFs, and more. Because NFTs carry value, they can be bought and sold just like the other artworks, their value is defined mostly by the market and demand. Still, that does not mean an NFT artwork in the market has only a digital version. Just like an original artwork is printed, copied, and traded, NFT copies are still part of the blockchain, but they do not carry the same value as the original ones. And one cannot hack the system when clicking the NFT image and downloading it. That does not make you a millionaire because the copy does not store the information connected with the Ethereum blockchain.
How to Buy NFTs?
Any digital image can be bought as an NFT. But if you are a beginner, there are some points to watch out for purchasing. You need to decide on which market you will buy, what type of digital wallet to store, which cryptocurrency to use when completing the purchase.
The most common NFT marketplaces are OpenSea, Mintable, Nifty Gateway and Rarible. There are marketplaces for the more specific NFT types, like football, basketball forms, or balls. But you should watch out the prices. Some marketplaces cost 'gas fees' for the energy need to complete the transactions on the blockchain. The other fees can include dollar-ethereum exchange and balancing (the most common cryptocurrency to buy NFTs).
How to Sell NFTs?
A marketplace can include the NFT in its process, and the process can vary from platform to platform. You will basically upload the content on the marketplace and then follow the instructions to convert it into an NFT. You can define your artwork details and price. Furthermore, you can earn a sales commission from the next owner.