NFTs are short-term for non-fungible tokens, and when we say non-fungible. What does it mean when something is said to be non-fungible? This article I will be focused on explaining the whole concept of NFTs such as:
How to mint NFTs
How NFTs are related to the blockchain
The difference between NFTs and cryptocurrency.
NFTs came around 2014, but in 2021, they started to become mainstream. Over the past 12 months, NFTs have evolved significantly.
What are NFTs?
NFTs are digital representations of valuable assets that can be owned by individuals in exchange for digital currencies on the blockchain. Also, NFT simply stands for a non-fungible token, which means that it's a one-of-a-kind digital asset that belongs to you and you alone.
Difference between Fungible and Non-Fungible
Fungible - refers to items easy to exchange or trade for something else of the same type and value. Fungible assets are simple assets that are interchangeable, like how you can exchange one ETH for another ETH and still have the same thing or a dollar from another dollar.
Non-fungible - on the other hand, this refers to items that have unique properties and attributes, giving them unique values even if they are part of the same collection. This makes them non-interchangeable, that is you can't trade an NFT for another NFT (non-fungible) but can only be traded in exchange for digital currencies.
Its non-fungible property makes it very unique and can not be replaced with something else. For instance, a bitcoin is fungible- this means you trade one for another bitcoin, and you’ll have the same thing.
How Is an NFT Different from Cryptocurrency?
NFTs are different, each has a digital signature that makes it impossible for NFTs to be exchanged for or equal to one another.
Digital signatures are like electronic “fingerprints.” In the form of a coded message attached to every NFT. This digital signature securely associates a signer with an NFT in a recorded transaction on the blockchain.
One Bored Ape, for example, is not equal to Crazy Bunny simply because they’re both NFTs but a bitcoin is equal to another bitcoin.
an image explanation of Fungible vs non-Fungible Token
How Does an NFT Work?
NFTs exist on a blockchain, which is a distributed public ledger that records transactions. You’re probably most familiar with blockchain as the underlying process that makes cryptocurrencies possible. Specifically, NFTs are typically held on the Ethereum blockchain, although other blockchains support them as well. Other blockchains include:
• Solana
• Zilliqa
• Flow
• Tezos and many more.
An NFT is created, or “minted” from digital objects that represent both tangible and intangible items, which could be in the form of:
• Art
• Virtual avatars and video game skins
• GIFs
• Collectibles
• Designer sneakers
• Videos and sports highlights
• Music
Even tweets and so many other things count. Twitter co-founder Jack Dorsey sold his first-ever tweet as an NFT for more than $2.9 million. Adidas made roughly $22 million listing out NFT for their sneakers collection. I sure tell you this is the new wake-up millionaire approach. so many people in the space already.
example of what NFT looks like
They are like physical collector’s items, only that the collections are done digitally. So instead of getting an actual oil painting to hang on the wall, the buyer gets a digital file instead.
Where can I buy and sell NFTs?
There are various platforms to mint NFTs but Open sea is the most popular and largest market to transact NFTs
What do you need to start buying and selling NFTs?
All you need is just basically:
Metamask:
MetaMask is a software cryptocurrency wallet used to interact with the Ethereum blockchain. It allows users to access their Ethereum wallet through a browser extension or mobile app, which can then be used to transact on various NFT platforms or interact with a decentralized application.
Ethereum in your wallet :
Most NFTs are built on the Ethereum blockchain, which means that you will need Ethereum in your wallet to pay for any NFT you want to mint.
Find listing NFTs :
There are different platforms to get new NFTs projects. Rarity is a website that collates real-time data of all NFT arts and collectibles—highly favored by Art collectors and creators (and also my favorites), especially in the generative art space. Rarity collates and ranks NFT arts in the order of their rarity and favors new projects
Note: it's advised to do personal findings and verify before proceeding to mint any NFT
Navigate to your preferred NFT minting platform to buy and sell :
At this stage, you should have done your research about the project you want to be part of. Your research includes: Joining their social media platforms where you can get the full details about the project and also get a chance to ask questions. The minting platforms are most likely indicated in the discord channel of the project.
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