In the world of Cryptocurrency, there is a new craze about the Non-Fungible Tokens(NFTs), but what it actually is and how you can make your own NFT? Here, we have revealed everything about the NFTs that will help you to know them better and guides you to make your own NFTs right now.
The first NFTs were CryptoPunks and it was released back in 2017 by the American Studio Larva Labs, on the Ethereum Blockchain. After some time, a blockchain game on Ethereum, CryptoKitties was released and it went viral. And now, in 2021, a Canadian Musician sold nearly $6M worth of tokens denoting digital art on Nifty Gateway.
This is the reason why there is so much rage about the non-fungible tokens in the market. Apart from this, it is believed that NFT will continue to rise in the upcoming few years because of its inherent collectible quality.
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Non-Fungible Tokens(NFTs) – What is it and How Do I Make My Own NFT?
Before start planning to make a Non-Fungible Token, we should know what it actually is and how does it work. Below is the complete guide that tells you about the NFTs.
What is a Non-Fungible Token?
Non-Fungible Tokens can be explained easily by bifurcating the three terms – Tokens, Fungibility, and Non-Fungible.
Basically, tokens are digital certificates stored on a blockchain and they can be anything that is traded or exchanged. Fungible means anything that holds the same value even after substituting(or exchanging).
Non-Fungible is an asset that has unique attributes and can not be substituted. Now, any genuine collectible if put on an ethereum platform or on Blockchain, it is known as a Non-Fungible Token.
Expectations About the Non-Fungible Tokens
As most Non-Fungible Tokens exist on the Ethereum BLockchain, they can be sold or bought on special marketplaces and are transferable. If you are an investor and planning to invest your money, then it is the best option to invest in NFTs.
If we take the previous example of Canadian Musician, Grimes, she also sold $6M worth of tokens. Not only this but Nyan Cat(a youtube video) was also sold on the internet marketplace for under $600,000. So, there is no doubt that NFTs are increasing and will continue to grow. However, the current signs of NFT hype seem to be fading away soon because most of it lies in artificial prices.
How to Make Your Own Non-Fungible Token?
There are various platforms that allow you to create NFTs but as of now, OpenSea and Rarible are the two major platforms for NFT creation. As non-fungible tokens are powered by a blockchain, there are some front costs(network fee) called a gas fee, that are necessary to pay if you want to tokenize your art.
The first and foremost step to create an NFT is setting up a software wallet that holds your NFTs and allows you to pay the blockchain gas fee. It is important because wallets will store your private key that is required to authorize transactions.
As already mentioned about the NFT creation platforms, you can choose one accordingly and navigate to that platform. After that, you have to connect your wallet with it and create a name for your non-fungible token. Now, add a new item there and upload the exact file you want to tokenize. Define the no. of copies for the item, and set a retail price.
Now, you have to list your tokenized item to the marketplace. If you are a beginner and don’t know how to do this, you can check this beginner’s guide.
Advantages of Non-Fungible Tokens
If you have any collectible which is genuine and is available in limited quantity, you can tokenize it into NFTs. As of now, non-fungible tokens are popular in the gaming sector and most of their value comes from scarcity. Apart from this, the paper records can be digitized to NFTs, digital artists can convert their work into NFTs for copyright purposes, NFTs allow buying of virtual land, and last but not least, NFTs protect from identity theft.
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In the above-mentioned article, we clearly mentioned the non-fungible tokens. We hope that it helps you to better understand the NFTs. If you have any doubts regarding this, you can comment down.
Featured Image Credit: Moneycontrol.com
How do non-fungible tokens work?
NFTs are basically digital assets with a unique feature. Each Non-Fungible item is tokenized by providing proof of digital ownership of an asset in the digital world and thus, making the easy flow of buying and selling.
Where can I buy NFT tokens?
There are many marketplaces where you can buy or sell NFTs. As of now, OpenSea, Raible, Nifty Gateway, MakersPlace, etc are the major platforms for NFTs.
What is a famous example of a non-fungible token?
Some famous examples of Non-Fungible Tokens are digital arts, in-game weapon skins, sports cards, etc. As of now, non-fungible tokens are popular in the gaming sector and most of their value comes from scarcity.