What is NFT? How easily can you make one?

Published 16 Jun 2021 by Radhika Aggarwal

Table of Content

  1. How is an NFT Different from Cryptocurrency?
  2. What are some properties of NFT?
  3. Types of NFTs
  4. How can you put up your physical art as NFT?

NFT stands for Non Fungible Tokens or non-replaceable, a digital asset that equates the real-world objects like art, music, in-game items, and videos. They are being purchased and sold online with Cryptocurrency, and they are encoded with the same underlying software as many cryptos. They are a type of cryptographic tokens that can represent ownership of digitally scarce goods such as pieces of art or collectibles.

In economics, fungibility is the characteristic of goods or commodities in which each unit is interchangeable and indistinguishable from the other. Fungibility implies that two things are identical, where individual units can be mutually substituted.

Although NFT can be implemented on any blockchain that supports innovative contract programming, the most prominent examples are ERC-721 and ERC-1155, ERC-20 on Ethereum blockchain. Some examples are stable coins such as USDT or Defi tokens like Uniswap(UNI), Synthetix(SNX), etc. ERC-20 allows the creation of fungible tokens.

How is an NFT Different from Cryptocurrency?

NFT Different from Cryptocurrency

NFT is built using the same programming as used in Cryptocurrency. Many physical money and cryptocurrencies are fungible, i.e., they can be exchanged with one another. On the other hand, NFT’s are pretty different. They are referred to as non-fungible as every NFT has a signature on it, meaning they can’t be exchanged. NFTs are held on the Ethereum blockchain, although other blockchains support them as well. An NFT is created or minted from digital objects that represent both tangible as well as intangible items, including:

  • Art
  • GIFs
  • Videos and sports highlights
  • Collectibles
  • Virtual avatars and video game skins
  • Designer sneakers
  • Music

What are some properties of NFT?

properties of NFT

Some properties of NFT are:

  • Unique
  • Provably scarce
  • Individual
  • Ownership
  • Transferrable
  • Fraud Proof
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Types of NFTs

NFT Games

In many games like World of Warcraft, a player can hold both Non Fungible items like swords, shields, armors and Fungible items like gold, arrows. This standard allows developers to define both fungible and nonfungible tokens and decide how many of these tokens should exist.

NFT Marketplaces

“OpenSea” software lets users create their customizable Marketplace and set their fees for their sales. The projects must meet the ERC-721 standards to be sold in the market. You can develop auctions for items with any cryptocurrency. You must submit a contract on the platform to get your auction started. You can sell your holdings in packs, airdrop rewards to customers if so desired, and create loot boxes. “Rarible” is an NFT marketplace where investors can mint, buy and sell digital collectibles without any coding skills. An NFT Marketplace is meant for users to create and sell digital collectibles secured with Blockchain and earn $RARI using Rarible Marketplace.

How can you put up your physical art as NFT?

You can purchase a 2D image scanner to scan the piece of art you want to digitalize; you can create anything in the support file formats under 40MB JPG, PNG, GIF, SVG, MP4, WEBM, MP3, WAV, OGG, GLB, GLTF. As a creator, you are more likely to create a Video under 40MB or an image.

You can do many things with the original physical work, some of which are:

  • You can sell both or sell only one. You could even sell them separately to different collectors, or you can give the rights of the artwork and let the buyer decide what to do with it.
  • Digitalize your work and destroy the actual physical artwork. Record a video of it shredding or burning and post it as an open video with the NFT.
  • Make it a part of the process and declare it as a master model. Make sure it stays in your possession and not for sale.
  • Ship the contents to the buyer.

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