There is a lot of talk about NFTs, or Non-Fungible Token. Rare assets that are created and transferred on the blockchain. NFTs have surprised many; A simple digital image sells for over $ 100,000. On the other hand, we hear that someone is willing to spend tens of thousands of dollars for a football player’s token, which has no special use. If you are wondering what exactly the structure of NFT means;
How can you work in this field and Make and sell your tokens, Read this article to the end?
In this article, I do not intend to discuss the nature and value of NFTs and I will try to explain more about how to enter and work in the field of NFT.
However, I will first give a brief explanation of what NFT is and what its benefits are.
What is NFT?
Non-fungible token, or NFT for short, is a unique digital asset. Unlike Bitcoin, Ethereum, and other cryptocurrencies that are similar and have interchangeable units, each NFT unit has specific features that set it apart from other units.
Although NFTs seems to be an innovation, If we pay a little more attention, we are not very strangers to them.
The price of a pair of professional football shoes may not even reach two thousand dollars, But if the same shoes are worn by the world football legend, Cristiano Ronaldo, and with that, he scored an important goal for Real Madrid, how much can it be worth?
How much would a postage stamp that can be purchased today for less than $ 1 be worth if it was from World War II and was found to have been signed by Winston Churchill?
Non-Fungible Tokens are valued in much the same way and with their properties, except that these tokens are virtual and you can not touch them.
An NFT, similar to cryptocurrencies (Bitcoin, Ethereum, etc.), is stored and transferred, except that each unit of unique tokens has its unique characteristics and is not of the same value as the other units.
cryptocurrencies are money, or at least their purpose is to be money.
This means that cryptocurrencies must not only act as a store of value, an intermediary of exchange, and a unit of calculation but must also be (Fungible).
So (under normal circumstances) the value of one bitcoin is equal to another bitcoin, just as a hundred-dollar bill is no different in value from another hundred-dollar bill.
When you lend a hundred-dollar bill to a friend, you do not expect to get back the same bill.
But NFTs are an exception to the latter rule; This means that a non-Fungible Token unit cannot normally be equated to another non-Fungible Token unit; Just as you can not borrow one person’s car and then hand over another car to him.
The main thing that makes an NFT different from other digital assets (such as a regular file or a diamond in a computer game) is that its ownership is registered on a blockchain (an immutable database) and no one can infringe on it it it if it that ownership.
Also, as I mentioned, NFTs are stored in the owner’s wallet like cryptocurrencies (like tokens) and can be transferred in a matter of seconds with a simple transaction. In other words, with the help of NFTs, there is no need to go through time-consuming processes to transfer ownership (sale) of a digital asset.
Today, although there are still technical and legal challenges (ownership and copyright) to NFTs, NFT can be made from a painting, a photo, an in-game item, a video, an Internet domain, a ticket, and so on.
I go to the main point. How to build and sell your NFT?
What do we need to get into NFT? What is needed before attempting to work with NFTs depends on the platform and the type of NFT, But almost all platforms require two things:
NFT exchanges will be done through users’ wallets. In other words, when you buy or build an NFT, that NFT is stored in your wallet. So to work with sites in this field, you need to have a digital wallet.
Most NFT projects today work on the Ethereum network, and the best Ethereum wallet for interacting with decentralized applications is the free Metamask wallet. This wallet is installed as an add-on on Chrome and Firefox browsers and you can use it safely to exchange Ethereum and tokens based on it. So for the first step, download the Metamsk wallet for your browser and create an Ethereum account on it. You can download this software from this link.
Be sure to write down the recovery words that the app gives you at the beginning of the wallet. If the software is deleted from the browser, only with that backup you can access your property again.
In the future, NFT platforms may operate on other blockchains such as Binance chain and Theron, so you need to get the right wallets for these chains. There are usually wallets that you can use on every NFT site.
2. Some cryptocurrency (usually Ether) to pay fees and expenses
You have to pay two main expenses to build NFT: the platform fee and the network fee.
The amount of the platform fee depends on the site you use to build NFT and the network the fee also depends on the condition of the network on which the NFT platform operates.
Unfortunately, Ethereum Network’s fees are very high at the moment due to network congestion, and a large part of the expense is the same fees. Fees will be much lower on platforms built on other blockchains such as the Binance chain.
Remember that creating a non-fungible token does not mean selling it, and the cost of building an NFT is non-refundable.
Two methods of operating in the NFT area
There are two general ways to operate directly in the NFT:
Build NFT on specific platforms and sell it on NFT exchange sites
Buy ready-made tokens from NFT exchange sites and sell them at a higher price (NFT transactions)
Each of these two methods has its challenges.
For example, if you choose the first method, you may need expertise, reputation, skills, and marketing experience to be able to build an NFT that someone is willing to buy, and in the second method, you must have a huge fund and be familiar with the market so you can identify which NFTs will be valuable in the future. In the first method, the risk is usually less, because you only pay for the platform and fees and build your NFT in the hope of selling it, but in the second method, since you buy a token at a high price, there is no guarantee that someone else would buy it from you again.
There are different types of non-fungible tokens and they are classified into different categories. So to build an NFT, you must first recognize its types to know which type is most suitable for your situation. For example, one common type of NFT is to convert a work of art or history (painting, photograph, document) into a token and sell it, but if you are not famous, this method may not be right for you. In the following, you will get acquainted with the most important types of NFT.
notice: reviewscenter.net does not verify or guarantee any of the following platforms and has no recommendations for entering this field. The user is responsible for the general and technical review of these platforms.
Create a simple NFT; digital artwork
The most pervasive type of NFTs today (early 2021) is digital art. The general idea is simple: convert a PNG, JPG, MP4, Gif, and… file to NFT, and you can sell it if you want.
Of course, if you are not popular or your NFT is simple and unattractive, you should not expect anyone to be willing to spend their valuable money on your NFT.
Popular art NFTs are usually made by a well-known artist or use intelligent programming and contracting to change status and make them unique.
The good news is that if you are not familiar with programming, you can create NFT on many platforms with just a few clicks.
Here are some of the great websites you can create NFT Digital Art on:
Each of these sites has its features and rules. For example, in MakersPlace, people must have an invitation from other artists to make NFTs, or prove that they are an artist by filling out a form; But on Opensea and Rarible platforms, anyone can create their own NFT.
Of course, before being an NFT maker website, Opensea was a platform for buying and selling NFTs, and not very suitable for creating complex, transformative NFTs. You can try other websites to create more professional NFTs.
Learn how to create NFT digital art on the Opensea site
- Go to the official site of Open sea at Opensea.io and click on the “Create” button at the top of the page.
2. Click on the “Sign In” button to connect your Metamsk wallet (which you have already installed on the browser) to Open sea. There is no need to pay a fee.
3. You will be taken to the “My Collections” page. Click the “Create” button to create a new connection.
4. In the opened page, enter a logo, name, and short description for your collection (NFT) and click “Create”.
5. Now your collection is ready and you can add any file you like by clicking on “Add New Item”. Your collection can only contain a single file. In the Add Item section, you can upload the original file that you want to NFT.
We define each of the parts of this section as shown above:
- In this field, you must enter the name of the item. If you NFT only one item, you can enter the same name for your collection.
- You can see the link to the NFT page on the Opensea site after it is created.
- In this field, you can write a short description of your item.
- If your NFT has a special feature (for example, a picture of a man in it) you can add your desired feature to it. This field is not required.
- If your NFT has numeric attributes (such as speed), you can add the desired feature to it to be displayed as a progress bar. This field is not required.
- If your NFT has numeric attributes (such as speed), you can add the desired feature to it to be displayed as a mode. This field is not required.
- By activating the “Unlockable Content” check box, the file is displayed only when NFT is purchased, and in fact, only the token owner can view it.
6. After adding at least one item, you can create your own NFT and put it up for sale by clicking the “Sell” button.
The pricing process is up to you. You can set a fixed price for your NFT (1 in the image below) and you can also choose to have NFT sell at the highest bid after a while. (2) It is also possible to combine an NFT with other NFTs for sale. (3) The currency is Ethereum on the Opensea platform, but you can choose other currencies as well.
After selecting the sales method, clicking the “Post Your Listing” button will open the Metamsk wallet and ask you to make a transaction on the Ethereum network to put the token for sale. At this stage, you have to pay the Ethereum network fee that Metamsk has set for you, which at the time of writing (late 2021) is relatively high due to network congestion.
Finish: Metamsk asks you to make a transaction.
Digital cards and collectible games
When I was less than eight years old, “playing cards” were popular among children. In the streets and neighborhoods of some countries, children played with cards and tried to get more cards in any way possible; Especially football cards.
These cards had no use other than games, but among the children, whoever had more cards, was ahead of the pack and could have a better chance of winning the next games.
Some cards were more valuable than others because of their scarcity; I remember very well that I was not willing to exchange a special card of David Beckham with even two hundred other cards. If you’ve experienced card games, congratulations, you are already familiar with the phenomenon of non-fungible assets.
Now these same cards have entered the digital world and instead of being physical and put in our pockets, they are digital and we store them in a digital wallet. Also, instead of playing with them on the street, we play on our computers and mobile phones.
In the world of NFTs, each digital card is a token whose ownership is registered on the blockchain, and the owners can store it in their wallet (such as Ethereum wallets) and easily transfer or sell it.
Digital cards that convert to NFT are commonly used in games, so whoever has more and better cards will have a better chance than others. How each card works and how it becomes valuable depends on the game.
For example, in a football game, Ronaldo’s card is worth more than an average player’s card, because whoever has Ronaldo’s card will have a better chance of winning and gaining points.
One of the spaces that can make the most of NFTs is in the multibillion-dollar gaming industry. It is no exaggeration to say that soon, in computer games, game items will be presented in the form of tokens to give real ownership to players and to be able to sell them for real money outside the game. For example, imagine that the Gem (diamond) in the famous Clash of Clans is a token, and everyone can sell it for real money if needed.
Currently, there are many blockchain games and systems in which users can gain a digital card, buy these cards to play the game and increase the power of the game, and sell them if they desire. Here NF the platform only creates the NFT.
Of course, some cards are not used in the game and are more “collectible”; That is, people buy and maintain them only because of home eir special figure and character. These types of cards are related to the use of NFT in digital art, which we mentioned above.
Here are some of the most popular NFT digital card projects that are open to everyone:
- so rare: It is a fantasy football game in which players can form their team with the cards of well-known players and compete with others in leagues. Each player card (Common Cards) is an NFT and is stored in the user’s wallet. Scores are also determined by the actual performance of the players. For example, a player can include Karim Benzema in his team, and if this player scores a goal, the player’s score in so rare will increase compared to others who do not have Benzema in their team. Free cards are initially given to players, but rare cards for great players must be purchased or won through a match. It is not possible to sell free cards in the game, but with free cards, you can participate in some small tournaments. In these tournaments, the top players are given a rare card that is worth the money.
- crypto kitties: A blockchain-based game that is one of the first and most popular NFT projects. In this game, users collect and trade virtual cats. Cats, each with their own set of characteristics, can breed and make new cats. If you have superior breed cats or your chances are good, according to genetics you can have a rare and extremely valuable cat.
- Gods Unchained: Is an Ethereum Blockchain game in a fighting style game in which players can fight others with digital cards. Starting the game is free and players will receive free cards first. Free cards are not NFT and have no value, but there are special cards with unique features in this game that are in the form of NFT, given to top players periodically, and can also be purchased.
- Axie Infinity: This is a blockchain game in which players are confronted with cartoon characters named Axie. Each Axie in the form of a pet is an NFT and the player has complete control over it and the players use it to play various games.
At present time, to succeed in most of these blockchain games, you need to pay money and it is either not possible to play for free, or if there is, the games are designed in such a way that the user has to buy a card to continue to succeed. So before participating in these projects, think about your money!
As I write this article, a piece of virtual land, where you can never set foot on it, is up for sale for 39,500 $ on the Opensea platform, and it’s interesting to note that the owner wrote in the description. : “[Land] in a good place…”
Virtual Worlds or Metaverse are more than just a game. Virtual Worlds or Metaverse are more than just a game. In these worlds, you have your own identity, you walk around the city with your friends, exhibitions are held, you can go to amusement parks (where computer games are played) or museums (digital art exhibits). You can buy clothes, houses, and land for yourself and even construct on your land.
Of course, the expansion of these worlds is still technically challenging and they do not have a very high quality, but in the future, these challenges will also be resolved and we will see a large presence of people in these worlds. Non-fungible tokens, or NFTs, are a privilege to the virtual worlds, as they bring the same real-world ownership benefits to the digital world. For example, if you buy a costume in an NFT-assisted virtual world, the costume belongs to you as a token on the Blockchain that you can save on your wallet and transfer to someone else if you wish without asking for anyone’s permission. Here, too, NFT is created by the platform.
The following projects are the most popular virtual worlds that use NFT innovation:
- Decentraland: Decentraland is a blockchain-based virtual world that uses the Ethereum network. As the name implies (decentralized land), the ultimate goal of this platform is for its users to manage it and for everyone to be able to have their own virtual life in this world and produce useful content and services. Currently, the main asset traded in this game is “land”. Each land is an NFT that is exchanged for the MANA (internal Decentraland currency) token. Lands have a different value than the area in which they are located. Decisions about the future of this world will also be made by voting in the Decentraland community.
- SandBox: Sandbox is a decentralized virtual world where people can create games on its lands or 3D assets, and make money by playing games and selling assets. At the time of writing the article, this project is still in the experimental phase and still has a lot of work to do in terms of the user interface.
- Cryptovoxels: A virtual world made of three-dimensional pieces that work on the Ethereum blockchain. People can experience life in this world and have their land and possessions.
The issue of Internet domain ownership has always been an exciting topic among free Internet enthusiasts. They all agree: In today’s Internet (centralized Internet) people are not the real owners of domains.
Decentralized domain providers have come up with solutions to manage these issues and the challenges associated with internet domain transfer.
To solve problems such as censorship, infringement of property, and the time-consuming process of transferring domains to others, these companies record the ownership information of each domain on the blockchain, so that a simple transaction on the blockchain can also transfer ownership.
Decentralized domains are one of the most important aspects of NFT, and unlike most other types of NFTs that are more collectively used, the use of these domains to solve a problem is more noticeable.
Each domain is a token that is stored in the owners’ wallet and they can use it as an account number to receive money (cryptocurrency) or a site address.
The following two companies are currently the largest providers of NFT domains:
- Ethereum Name Service (ENS): This company offers ETH. Ethereum-based domains. These domains can be used to interact with the Ethereum blockchain and receive Ether and Ethereum -based tokens, as well as on websites.
- Unstoppable Domains: The company offers Crypto. domains that, like ENS domains, are used to receive cryptocurrencies and use them on websites, except that the company has a more centralized structure.
Important Note: Blockchain-based domains are not yet in harmony with standard domain standards (ICON company standards), and at least at this point they can not be used as easily as regular domains. Therefore, at the time of writing this article, it makes sense to purchase these domains only for a long-term outlook or to use them as an account number (wallet address), not for use on websites.
From the endless sea of NFTs, we have only seen shallow points so far. Soon, there are likely to be many more types and applications of NFTs that can not be accurately imagined at this time.
Wherever there is a need to prove ownership of various items in the digital world, we can feel the NFT vacancy.
Even at present, non-fungible tokens are more widely classified, but in this article, only the types that have the largest number of users at the time of writing are mentioned.
To trade any NFT, we must refer to the NFTs market, which is available to everyone in the form of a site and application.
Usually, any platform that allows NFT creation has an internal trading market. For example, on the Foundation platform, after creating NFT, you can put it up for sale on the same platform.
In addition to trading in markets within each platform, NFTs can also trade in public markets. In public markets, such as cryptocurrency exchanges, all types of NFTs are traded from different platforms.
At the time of writing, the top public market for NFTs is the Opensea Platform. Opens supports a wide range of NFTs, and more than 14 million various non-fungible tokens have been registered for trading on this website.
In terms of classification and diversity of NFT, Opensea stands out among other platforms, but most professionals prefer to sell their work on the same NFT platform, and Opensea is more useful for retail traders.
Besides network fees, putting a new NFT up for sale on the open is free, but after the sale, the site charges a commission of 2.5% of the amount. At this stage, there is no other significant public market to introduce except Open sea.
Risks and Expences
As I mentioned above, your direct involvement in the NFT field (at least at this point) can be very risky and pricey. Here are some of the major risks and costs of working with NFTs:
- Fees: Most NFT projects are currently operating on the Ethereum network, which is also facing a serious fee challenge. At the time of writing, each transaction on NFT-related smart contracts costs an average of more than $ 50.
- Receive money for winning: Currently, you have to spend a lot of money on NFT projects (especially games) to increase your chances of selling or winning, and there is no return guarantee. In some NFT games, if you do not pay, you probably will not have a chance to win (earn money).
- Invalid platforms: NFT field is less than four years old, and as I’m writing this article (early 2021), NFT host websites and applications are still in close competition. So there is not much knowledge of these platforms yet, and it is still difficult to check smart contract codes (to ensure they are not stolen or censored). Thus, an NFT platform may be set up for fraudulent purposes or its smart contract codes may have technical issues.
- When you purchase and can not sell: There is no guarantee that the value of an NFT will not reach zero after a while. There is also no guarantee that someone else would buy an NFT at a higher price than you.
Certainly, more issues can be added that can only be understood by experience in this field. In general, you should know that the NFT field is now like the cryptocurrency market in 2016; Many expensive projects, NFTs, and platforms today, probably won’t exist in a few years.
Given all these arguments, if you are not an artist, geek, or collector, and your goal is simply to make a profit from the markets, it makes more sense to invest in non-fungible tokens (cryptocurrencies). For example, lands in Decentraland are each a non-fungible token, but if you want to buy these tokens (lands), you must use the Decentraland functional token, the MANA. It may make more sense to invest in MANA here.
Creating an NFT with multiple platforms is not difficult on its own, but if you are not a well-known person or your NFT does not have special features, you should not expect anyone to be willing to buy it from you.
There are many different types of non-fungible tokens, which you read about the most important ones in this article, so a single image or video token is just one of many types of NFT.
In this article, I have tried to introduce the best platforms for each type of NFT, but be sure to research each platform yourself before doing anything to avoid technical problems or fraud.
Currently, you must either be famous, an artist, or wealthy if you want to be effective in the NFT field. So if you are planning to work in this field, be sure to consider the fact that the risk of not returning the money due to fees and buying a worthless NFT is very high.
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