NFTs have been growing in popularity over the last few years as they take over the world of digital art.
But what exactly is an NFT, and how are they created and sold?
Here’s a super-quick guide to NFTs and how to sell them.
What is an NFT?
A non-fungible token is a unique digital asset that cannot be replaced or replicated.
Like any cryptocurrency, NFTs are stored on blockchains which means they are fully traceable and protected no matter how many owners they pass through.
NFTs are similar to crypto coins, but NFTs hold extra code that makes each one totally unique.
NFTs can be entirely digital assets such as digital art or music, but NFTs can also represent real-world objects as smart contracts.
NFTs were first used on the Ethereum blockchain and have since exploded across the crypto world as a new asset and method of exchange.
What are NFTs Used For?
NFTs, as mentioned, are encrypted, unique digital assets representing real-world or digital items.
An NFT can be anything from art, collectables, gifs, videos, music, virtual collectables, in-game items, etc.
Due to the nature of blockchain, NFTs started gaining popularity in the last few years to authenticate and sell digital art.
Digital art has always had difficulties regarding ownership, valuation, and provenance.
It’s too easy for someone to copy images they find from the internet and claim them as their own.
With NFTs, ownership and originality are evident within the asset’s code.
From its creation, an NFT is original and unique, proving the provenance of any digital asset, which allows artists to set their prices and more easily sell their work.
Because every transaction on a blockchain is traced, there is never a question of who owns which NFT and where it came from before them.
The unique nature of NFTs has not only broken open the art world but has also created a whole new way to represent, exchange, and protect intellectual property online.
How to Make and Sell NFTs
Anyone can make and sell an NFT.
First, you need to choose which blockchain you want to sell your work on.
Ethereum was the first blockchain to sell NFTs in 2015, but NFT marketplaces have appeared on many blockchains, giving you various options for buying and selling NFTs.
The NFT marketplace you choose is essential because that will be how your audience finds your work.
Consider digital marketplaces such as the FTX market, explicitly built for creatives and artists to sell their digital works.
The more convenient and user-friendly the marketplace, the easier it will be for buyers to discover you.
Once you’ve selected a blockchain, open a payment wallet so you can pay fees and receive payment for your NFT.
The wallet you open will depend on the cryptocurrency used in your marketplace.
You will need to purchase some cryptocurrency to pay to get your digital artwork ‘minted’ into an NFT by the platform.
Once your wallet is connected to the NFT platform, and your NFT is minted, you can list it for auction or a set price as you see fit.
Remember, there’s no guarantee someone will purchase your NFT, and if they do, it will be paid for using cryptocurrency, which you would need to cash out via your wallet to move into your bank account.
Why Are NFTs So Expensive?
If you’ve already taken the chance to check out Opensea you may be asking yourself, why are NFTs so expensive?
The answer goes back to what I noted earlier, these NFTs are originals and therefore, buying one would make you the owner of an authentic.
So although people can copy the design and save it, you’ll always be able to say you have the original.
But why does that matter if it’s so easily replicated?
The same reason people travel far and wide to see the authentic Mona Lisa when they could just as easily buy a mug with the print on the front.
Think about it this way, you can find the Mona Lisa on mugs, t-shirts and key chains
I could have a coffee mug with a print of the Mona Lisa on the front but I wouldn’t be able to hold a candle to you if you had the original
Think about it this way,
if you have an authentic oil painting by Leonardo Di Vinci and I have a mug with the mona lisa printed on it.
The Future of NFTs
The nature of NFTs has wholly transformed the level of control that artists and creatives have over their digital works.
However, guaranteed ownership and authenticity go beyond the world of digital art and could cause significant reform in other industries.
NFTs can be used as smart contracts to authenticate business transactions, and they can help change ownership regulations for businesses like record labels that may exploit creators.
The advantages of NFTs as a form of exchange and authentication are endless, and we will surely see many new applications of NFTs in the future.
Non-fungible tokens don’t have to be super confusing or challenging to use.
If you’re an artist, consider minting an NFT the next time you’re looking to sell your work.