WHAT IS NFT?
By: Hues Of Gigi
Tags: Creators, Artists, Nft, Metaverse

The very question every puzzled person asks when they hear the word or are in a gathering with their friends and seem to feel left out of the conversation.

Nft simply means Non fungible token.

BUT, it doesn’t just stop there.

What is the concept that surrounds non fungible tokens, you may wonder?

They are digital assets on a blockchain with unique codes that distinguish them from one another. In simpler words, they can’t be replaced.

This concept has been utilized in many different forms from representing human identities, real estate, tangible assets and more.

While many have the perception that you have to be an artist to be in the world of NFTs, it’s not always the case which leads us to the next question below.

Do i have to be able to paint/draw to make or own an NFT?

The answer is no.

Thanks to the recent development of Nfts, their perpetuity have helped creatives in different forms of art be a part of the fast growing community.

Photographers, videographers, sculptors, poets, even beat/music producers have the opportunity to make their work NFTs and it doesn’t just stop there.

You’d be amazed at the fact that memes and tweets are also made into NFTs.

Jack Dorsey AKA blue bird man(Twitter CEO) tweeted a link to a tokenized version of the first tweet ever written where he wrote “just setting up my twttr.” The NFT version of the first-ever tweet was bid up to $2.5 million and was sold for $2.9 million.

Yes, i know. Shocking, right?

Also, remember that meme image of a determined looking toddler one could bet is the recycled spirit of an old man because kids and their facial expressions these days don’t add up. Anyway, it was sold for 15.00 ETH which was worth $32,355.75 and now worths $56,947.35.

You can have no artistic ability yet be a sensation in this vast world and that brings us to the notion of being a collector.

A NFT collector is someone who invests in artists by buying their digital works and eventually sell them for a profit.

The fun part of it is you’re not just buying the asset itself but you’re buying the right to prove you own the digital asset itself.

You hear some people say they can easily screenshot the artwork so what makes it so special and why would they want to buy something they can get in that manner for so much money?

The ownership, that is the exception.

The more a piece of art or work is screen-grabbed and shared, the higher it’s value becomes. In the process of invalidating the original through false duplication, you’re creating validation for the original.

Note: that the value of what you own might shift based on the legitimacy of who is selling it to you, a reason why research is important before investment.

Truthfully, the risk can’t be ignored which is still being addressed but success never comes without risks.

An advice is: purchasers are to ensure that what they’re buying is already IPFS( InterPlanetary File System) a peer-to-peer network that makes it more invulnerable for storing and sharing data in a distributed file system.

How do i create an NFT?

First of all, you have to ensure that you know the prerequisites of what it means to create an NFT and one major part of it the transaction/gas fees in which there are two stages:

Minting And listing.

However, for some platforms both these stages or one of them are free. For example Opensea and Rarible, but before i go into platforms, let’s have you understand what gas fees are.

Gas fees are transaction fees that users pay to miners on a blockchain protocol to have their transaction included in the block(as written by David Schwartz).

In other words, users are required to pay for the computing energy necessary to process and validate transactions on the blockchain(for instance Ethereum, the most common blockchain network).

Ever heard of demand and supply?

Yeah, that’s how it works.

If there is more demand for transactions, miners can choose to include the transactions that pay more, obliging users to pay more so their transactions can be processed quickly and efficiently.

Although, there are several sites at which you can monitor gas fees so you know when to mint or list at a less expensive rate.

For example:

https://crypto.com/defi/dashboard/gas-fees

https://etherscan.io › gastrackerEthereum Gas Tracker — 129 Gwei — Etherscan

Now for the steps to creating an NFT:

STEP ONE:

Choose a platform to sell your NFT.

Various platforms over the time have been established for creators to sell NFTs but you have to choose the one which you think is right for whatever project you want to launch.

There is Opensea, Rarible, Foundation, Superrare, etc

Each platform has different types of tokens that are supported on it’s marketplace which should be an important consideration when making a choice. Some are closed marketplaces whereas they employ a specific proprietary token.

Also, do research on whatever platform you choose to sell your work, if they’ve had any issues/scam in the past and what kind of safety they have in place.

Opensea and Rarible though, let you create NFTs on the Ethereum blockchain without paying anything which is what is called “Lazy minting”.

Lazy minting allows you create an NFT and put it up for sale without it really being recorded on the blockchain, hence avoiding charges.

When someone then buys it, the fees for writing your NFT to the blockchain will be wrapped up with the fees to transfer it to the buyer.

That sounds enticing, right?

Yet there is always a catch which I’ll advise you to research on.

Okay — scratch that.

With OpenSea, listing your first Ethereum NFT for sale. which is an expensive transaction and can range from $300 — $400. It is a one-time payment, more like an initializing process and once done, you’ll be able to lazy mint NFTs without having to pay a cent.

With Rarible, those fees are not required.

However, trying to remove your NFT from sale will cost a fee and could range from $20–$30.

Both Rarible and OpenSea will take a 2.5 percent fee from any sales you make. Eg: if you sell an NFT for 0.1ETH, you’ll actually receive 0.0975ETH.

Still, there are blockchains on Rarible that may charge lower fees but the clause there is you will be limited to single edition NFTs(1/1) neither will you be able to sell them with an auction.

If i were you, I wouldn’t go through this process.

However, I’m not you.

STEP TWO:

Set up a wallet.

Wallets are applications where your cryptocurrencies are stored, including NFTS you mint and buy.

If you want to know more about Crypto wallet, read this article by Coinbase: https://www.coinbase.com/learn/crypto-basics/what-is-a-crypto-wallet?.

One thing you have to consider when setting up a wallet is using one that is compatible with the platform you want to use. Like i had said before, some platforms have various tokens that are supported on their marketplace so it is something you should put in analysis.

If you’re going for Ethereum based platforms like Opensea and Foundation then Metamask and Coinbase are your dudes. Both can be used as an app or an extension on Firefox or Chrome. You may want to consider Coinbase if you want to broaden your horizons in the crypto world given it has support for blockchains not based on Ethereum.

STEP THREE:

Connecting your wallet.

Once your wallet is all set up, you’ll want to connect it with the NFT platform you want to use for your project. For Opensea, clicking the create button to your right cues you to connect your wallet. After, you’ll be presented with a list of compatible wallets and whichever you have set up is what you’ll click on.

If you’re using your Metamask/Coinbase extension, a pop up will appear on your screen asking you to authorize the connection.

Here is a short Youtube video on how to connect your wallet: https://youtu.be/eYpz34noK6Y

For Foundation:

https://youtu.be/vimFmCXDqME

For Rarible:

https://youtu.be/QKvfY-7gVR0

STEP FOUR:

Creating an NFT.

After you’re done with step 3, it’s either you arrive at a page where you can begin the process of uploading your NFT or you click the create button at the upper create of the page. Now it’s left for you to choose if you’re uploading your work as a 1/1 or a collection.

How to create a collection guide:

https://youtu.be/fzH7Gjadmj0.

STEP FIVE:

Minting and Listing your NFT.

Once you’ve clicked the create button, you’ll be redirected to a new item page where you get to upload your item(gif, image, etc) and do be aware of file type and size above noted above the selector.

Give it a name or a title, you can also choose to use the External link section where you can input a link of your website about the artwork and use the description field where you use the art of words to give potential buyers an explanatory idea of what your NFT is about or the inspiration behind it.

You can check other artists profile to get an idea of what is expected.

There is also what is called “Unlockable content” which the buyer or owner of the NFT will be able to see, you can input anything there such as a thank you message, a code to redeem an item or anything. It’s optional.

And if your content is NSFW, ensure you use the explicit and sensitive content toggle.

After, choose your blockchain and refer to step 2 to be sure of which you want to pick.

Once done with this process, double check everything before putting it up for sale for nothing can be changed after that.

If all is good and merry then you can click create and you’re good to go!

However, you’re not done just yet.

You have to put it up for sale as you only just went through the creation(minting) process, below is the link guide to listing on opensea:

https://support.opensea.io/hc/en-us/articles.

What is blockchain?

I know you must’ve seen the word blockchain during your read and i also know that some of you are still confused about what it is, don’t worry, i got your back.

A blockchain is a system that stores and records information in a way that makes it difficult or impossible to change, hack, or cheat the system.

Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger.

For example, when a person purchases an NFT through a smart contract it is automatically secured by the blockchain meaning it is signed, stamped, and proof exists that YOU made that specific transaction and it is yours.

Now that it is understood, let’s move onto the next thing.

What is smart contract?

Smart contracts are literally what you think it is- contracts, statements of agreement but instead, are codified in a blockchain. The code contains a set of rules under which parties of that smart contract agree to interact with each other. If and when the established rules are met, the agreement is automatically enforced.

What’s an instance of a smart contract?

Ethereum

Polkadot

Cardano

Solana

Here’s a video to watch for broader enlightenment: https://youtu.be/M576WGiDBdQ

What is Metaverse?

It’s not as deep as you think it is but it is surely as mind blowing as people make it out to be.

The metaverse in the most simplest terms is a virtual world where users share experiences and interact in real-time within simulated scenarios.

The possibilities with the metaverse is lucidly endless and the NFT pace makers have proved that because of the flexibility it provides, from being able to create and buy NfTs as lands, join social communities, create personal identities, work, meet, attend concerts, game and much more.

So if you’ve been thinking about getting a VR, you probably should soonest and not miss out.

What are 1 of 1s/ limited editions?

1 of 1s are NFTs that have been supplied as a single, unique edition. 1 of 1s are perceived as scarce which makes them more valuable, because only one person can own them at a time.

While limited editions are NFT drops of a particular artwork that has only a specific amount of copies are available to acquire.

Priscilla Du Preez — Unsplash

Phew!!!

A round of applause to you for making it this far, i hope after the end of this read you have a better understanding of what NFTs are and you’re a little less confused about it all.

In conclusion, for those that are new to the world of NfTs and want to become creators, here is a word of advise for you:

Things may not go as you envisaged, your artwork may not get a bid as soon as you thought but do not let it be your prime priority that it demotivates you from indulging your artistic ability or creating art.

This is one mistake artists who are new to this concept make and it affects their esteem.

Art for art’s sake.

Art for passion’s sake.

Art for the love of it.

Art for your mind’s sake.

Art for expression’s sake.

Just keep ARTING, your evolvement and endless commitment is what will take you to the TOP.

Good-luck!!