Non-Fungible Tokens are one of the most popular items in the crypto world over the past few years, their trading volume is in billions.
This guide will explain you about the NFTs and detailed steps to create your NFT using the metadata associated with it.
What is an NFT?
NFTs are cryptographic assets stored on blockchain. NFT stands for Non-Fungible Token. They are not exactly like cryptocurrencies as cryptocurrencies are fungible but they use similar algorithms used to make cryptocurrency.
In simple words NFTs are unique identification codes stored on blockchain which are associated with some data that differentiate each token.
NFTs are non fungible means they are not traded one for another like Bitcoin or Ethereum or any other coin.
Benefits of NFT
- Non-Fungible Tokens are unique digital assets that are verified and stored on a blockchain
- Non Fungible assets provide proof of ownership and they can be transferred from one account to another.
- NFTs are used by artists to monetise their artwork
- As NFTs are verified and stored on the blockchain they provide authenticity.
How it works
NFTs are digital assets that are unique and individual. They are based on blockchain technology which is in simple words a decentralized ledger that allows secure transactions.
When someone creates an NFT, they typically do it on a blockchain that supports NFTs, mainly EVM (Ethereum Virtual Machine) compatible chains. The blockchain assigns a unique identifier to the NFT token which is then recorded on the blockchain, this identifier is then used to verify the ownership and authenticity of the token. When someone purchases that NFT they essentially buy the ownership of that unique NFT.
Another important aspect of NFTs is that they can include smart contracts , which are self executing programs with the terms of agreement between two parties(buyer and seller)
e.g. : royalty feature in smart contract that specifies original creator of NFT receives a percentage of future sales of that NFT.
Who can Create NFTs
Anyone who has access to blockchain that supports NFT creation and ability to manage digital assets can create NFTs. Overall, it is a bit techy task to create an NFT but some platforms like miniOrange NFT Marketplace, opensea, rarrible, etc makes it easy to create an NFT for users.
How to create NFT
Step 1: Determine the purpose of your NFT:
First you should have a clear vision why, for what purpose you are creating an NFT and the value it will offer to a potential buyer. It can be a digital art, music, a game asset, a collectible item, etc.
Once you decide the type of digital asset that you want to create, it is important that you make sure it is unique. This will help buyers to recognize its value and uniqueness.
Step 2: Choosing the right blockchain:
NFTs are created on the blockchain platforms such as Ethereum, Polygon, Binance, Solana, etc. You have to choose a blockchain that best suits your needs based on factors such as gas fee, community support, interoperability.
When it comes to choosing the right blockchain for your NFT project, Ethereum is one of the most widely-used options. This platform provides two distinct protocols—ERC-721 and ERC-1155—that can be used to create non-fungible tokens (NFTs). ERC-721 allows users to mint individual NFTs as unique assets, while ERC-1155 enables a single token contract to represent multiple types of digital assets. Both of these protocols are compatible with existing Ethereum applications such as smart contracts, decentralized exchanges and wallets.
There are other blockchains such as Polygon, Solana, Binance, etc that support NFT creation.
Step 3: Setting up a Crypto Wallet
You must have a crypto wallet to store your crypto coins and your NFTs or any other digital tokens. There are two types of wallets: hardware wallets and software wallets. Hardware wallets are physical wallets like Ledger Nano X, in simple words they are like a pen drive that stores crypto assets. There are hundreds of crypto wallets out there but Metamask, Coinbase, phantom wallet, etc are one of the most popular wallets. You can create an account using any of these wallets.
While generating an account it generates a private key or seed phrase, which will be used as your account password and should never be shared with anyone else. You also need an address for receiving crypto payments, this can usually be generated within the wallet itself.
It is also important to secure your wallet using additional security measures such as two-factor authentication (2FA) while setting up your wallet and if you are using a hardware wallet make sure you use a strong and unique password for increased security.
Step 4: Choosing the right NFT Marketplace
It is important to choose the best platform to host and manage your NFTs. Some of the best NFT Marketplaces are miniOrange NFT Marketplace, Opensea, Rarible, etc. miniOrange NFT marketplace is the whitelabel NFT Marketplace where you can create your own NFT Marketplace in just a few minutes, it also provides you with premium features like branding.
Step 5: Create an NFT
Now when you choose an NFT platform for your NFTs it’s time to create an NFT asset. Here is an example of creation an NFT on miniOrange NFT marketplace:
- First you have to set up your marketplace, if you don't know how to set up just click here.
- Then click on the Create NFT tab and you will see a create NFT form.
- First you have to enter the name of your NFT then describe the uniqueness of your NFT and set the reasonable price for it.
- After adding this information you have to upload your artwork or your file to create an NFT.
- Then click on the List NFT button to create and list your NFT to your NFT Marketplace where users can buy it. You can see it by clicking on the view site button.
After hitting the List NFT button your NFT and its metadata is uploaded to a decentralized storage system (IPFS) and then your NFT is minted.
This is how you can create an NFT on miniOrange NFT Marketplace by avoiding all technicalities.
In conclusion, creating an NFT offers a unique opportunity to create and own digital assets that are not only scarce but also highly customizable. By taking advantage of the features available on various blockchain platforms such as Ethereum, Polygon, Solana, etc. Developers can generate non-fungible tokens with their own unique set of features tailored to a specific purpose or market. Furthermore, by setting up a secure marketplace like miniOrange NFT Marketplace for trading these assets users can easily buy and sell them without worrying about fraud or counterfeiting due to the immutable nature of blockchains. All in all, when done correctly NFTs offer an innovative way for businesses and individuals alike to monetize their creativity while offering collectors access to truly rare items!