Are you looking to get started with NFTs as a novice?
Well, we don’t blame you! Thanks to their booming popularity and the big-time enthusiasts, these digital art pieces make up a market worth millions. It is almost the end of 2022, and the market is now flooded with a sea of NFTs. These things turn college students into millionaires overnight, with NFT values increasing daily.
However, if you’re dipping your toes into the NFT or the Non-Fungible Tokens space, you need insight into the industry.
But from where do you start, and what is this NFT all about? If these questions bother you, look no further because this article will walk you through the different aspects of these digital assets.
Understanding NFTs: What Makes Them Unique?
NFTs are unique digital assets, meaning each art piece is different from the others with its unique defining characteristics. These digital assets resemble unique ownership via a Blockchain-based timestamp and can be sold or traded independently.
However, it would help if you minted an NFT with smart contracts enabling the Blockchain network to store the information which further indicates the transaction. The code of this transaction will exist across the Blockchain network and be verified by other users on the network. Ethereum is one of the most pervasive smart contract Blockchains for NFTs.
Some of the most common NFTs in the market are digital arts. These NFTs can be anything digital, from courses, music, photographs, drawings, tweets, and more.
NFTs: How Did The Digital Assets Come Into Existence?
The entire story of digital art pieces started in January 2018 with the Ethereum Blockchain adding a support system for NFTs and creating the ERC-721 (Ethereum Request for Comments 721) network. This meant that users could now host their NFTs on the Ethereum Blockchain.
Following this update, CryptoKitties became the first-ever NFT to come into existence. The ownership of every kitty was tracked with the smart contract mechanism on the Ethereum Blockchain network. This meant each kitty was an NFT under the ERC-721 standard Blockchain.
What Adds Value To The NFT Tokens
Yes, it is easy to save an NFT with a simple right-click. But that will not entitle you to the ownership of the NFT and the utility that comes with it. The right-click save option will only mean you can access the artwork at your convenience since it is publicly available or accessible.
Let’s better understand this with a relevant example. Let’s presume you downloaded a JPEG and set it as your profile picture in a given social platform without the owner’s consent. Conventionally, the owner could prove the value or authenticity of the digital item. But things are different now, with the ownership being signed on the Blockchain, ensuring visibility to every contributor on the network.
Even so, many might wonder what difference this makes. Most major platforms are now bringing in verification criteria before one can use an NFT as their profile picture. Rumor says that Twitter is already working on something like that but let’s leave that to Elon Musk.
But besides all that, there is much more to the ownership and value of NFTs. Certain rules play an important role here, including:
- Rules of Economics: This caters to the simple law of demand and supply. This loosely translates to the more people wanting to buy a product, the more valuable it becomes. The fear of missing out and scarcity always makes things more valuable.
- There’s No Utility Without Ownership: Before you learn how to create an NFT, it is essential to understand that an NFT has no utility without ownership. This utility can translate to certain perks and information exclusive to community members, among many others. For instance, this is comparable to an early investor in a startup who is automatically entitled to more perks when the business grows and generates better profits.
How To Determine The Authenticity Of An NFT?
NFT scams are increasing by the day, leaving many wary about the authenticity of their NFT collections. But fortunately, there are some ways you can determine the authenticity of your NFTs, and these ways include:
- Reverse Searching The Image On Google: One effective way to determine NFT authenticity is by reverse-searching the image on Google. This will help you determine if there is any variation on the same image when uploaded to the search engine.
- Verify The Social Media Of The Creator: The next thing you need to do is check or verify the socials of the creator. If the creator is truly genuine, it is natural to presume they might have shared something on their socials. Most NFT creators are always active on social media platforms sharing details about their work. So check if these posts are credible as well as what others are commenting on those posts.
- Verify If The NFT is Selling Across Different Platforms: The final thing you need to check here is if the NFTs sell on different platforms. Consider it a huge red flag if you do not find the NFT selling on different platforms.
How Can I Start Selling My NFT?
Now that you have a better idea of NFTs, you might wonder how to sell one after minting your NFT. Fortunately, the process is relatively simple as it only requires you to follow a few steps. These steps include;
- Pick your preferred item, which can be any digital artwork.
- You now need to choose your Blockchain, which should be relatively easy considering most NFTs use the Ethereum Blockchain.
- The final step is to choose your NFT marketplace and set up your wallet. Some of the most common marketplaces include Rarible and OpenSea to help facilitate seamless monkey NFT selling.
NFTs are no longer ‘a futuristic concept’; instead, the rise of Web 3 and P2E games have made them an invaluable asset of the present. However, considering NFT markets are still in their infancy, now would be the best time to leverage these future digital assets.
However, before you’re set to design and develop your asset, ensure it’s backed by proper research. Remember, not all NFTs are backed by value; some revolve around ‘hype’ too. Invest wisely!