Before blockchains existed, numerous non-interchangeable digital objects already existed. Whether individual elements in computer games, digital tickets, domain names or entries in social networks, the computer world was almost full of NFTs. But one could neither clearly prove the possession, nor was it possible to officially transfer the ownership of these objects to someone else. There was simply no compatibility and therefore no standardized way to trade these digital things with sufficient liquidity.
And this is exactly where blockchain technology comes in. The entries and transactions on a blockchain are immutable, which makes owning an NFT secure and verifiable. This means that the origin and the complete ownership history are stored in the blockchain forever. NFTs on a blockchain thus enable the unique ownership of files that can be copied. The fast and inexpensive shipping allows a secure exchange and trading.
What makes NFTs so valuable?
What is driving the demand for NFTs? It’s not just digital scarcity or uniqueness. Rather, it is the individual benefit and the emotions that are derived from the origin of the NFT. The benefits are mostly obvious. If an NFT ticket gives access to a very significant event, there is a clear reason to purchase that NFT. The same applies to objects in a computer game which entitle the game characters to special abilities.
But why should you buy an NFT work of art for a lot of money? That is surely the question many are asking. And some doubt whether art can even be digital. But then it would be just as questionable why people buy expensive paintings or expensive collector’s stamps. It is the emotions that trigger the origin of the collector’s item. The story behind it creates the real value.
An autograph card is just a piece of paper with some ink on it. But if the signature comes from a very prominent personality and the reason for the signature was a very special one, then the value increases accordingly. In the age of digitization, works of art and signatures by celebrities can now also be dematerialized and displayed on the Internet.
The most famous NFTs
Although NFTs can look back on several years of history, two NFTs in particular aroused broad media interest in 2021.
In simple terms, an NFT represents ownership of any asset – digital or physical.
The term – non-fungible – means that no two NFTs are the same, for example, one US dollar is the same as every other US dollar.
This makes each non-fungible token unique.
NFTs are just as valuable as the market. NFT’s proof of ownership is kept in the blockchain. So it cannot be manipulated.
For example, if you own an NFT that represents a piece of land, it means that no one can change it by playing a foul. You can sell real estate, but these transactions can always be publicly verified.
Twitter founder Jack Dorsey sold his first tweet – “Just set up my twttr” – for NFT 2.9 million on March 22, 2021 as an NFT.
The buyer, Mr. Sina Estavi from Malaysia, is the managing director of Bridge Oracle, a crypto company.
Some people may ridicule his decision, but experts agree that the first tweet from the Twitter founder on this platform is really a valuable product. So it can pay him on time.
NFTs are much more than just a fancy tweet or painting.
Anyway, let’s see how you can create an NFT from your PC for free.
How do I create an NFT?
The first step is to choose a blockchain to host your NFT.
Each blockchain has its own protocol, a supported wallet and its own marketplace for NFT.
There are numerous blockchains such as Ethereum, Free TON, Polkadot, Cosmos etc.
Right now, Ethereum is the most powerful of them all.
So, I’m going to explain an easy way to create an NFT on the Ethereum blockchain and offer it for purchase.
# 1. Create an Ethereum wallet
A wallet is your personal space where you keep your blockchain-related items: coins, tokens, etc.
There are many ways to create your Ethereum wallet.
To save your crypto tokens, I draw with Metamask, a hot wallet.
A hot wallet is connected to the internet. Almost everything you hear about crypto hacks is about hot wallets
A cold wallet is not always connected to the internet. You only connect to the internet during a transaction (hot hot). The rest of the time, they hide from the prying eyes of cyber criminals.
If you are a newbie, I don’t recommend spending cash in a cold wallet. Instead, create a warm wallet – it’s free.
And the quickest way to get started is to download Metamask as a browser extension.
So, install the browser extension and go through the registration process. It barely takes five minutes.
You can also take a look at this tutorial if you have problems with this step:
Now that you have your wallet, let’s see how to make your first NFT mint.
# 2. NFT currency
Just as you chose Ethereum among the various blockchains, you now need to put your finger on a platform to create and sell your first non-fungible token.
Your best options for an NFT marketplace are Opensea, Mintable, Nifty Gateway, Rarible, Mintbase, etc.
Will NFTs Change the World?
The Internet has turned numerous industries upside down in the past 30 years. Who would have thought then that Amazon would one day be the largest retail platform in the world? Almost every area is gradually being dematerialized and is becoming more and more established in digital form. New, dominant, global, digital networks are emerging on the Internet. Facebook is the largest digital social network. YouTube is the largest digital TV and video network. Google is the largest digital information network.
Cryptocurrencies, especially Bitcoin, are increasingly developing into the largest digital monetary network. The blockchain technology behind it enables digital scarcity of data records, which is essential for recording values on the Internet. Any other digital file can be reproduced as often as you like. Digital scarcity paired with security through decentralization are a disruptor like the internet itself. Blockchain technology and smart contracts have the potential to turn many industries upside down again.
Blockchain technology also enables clear digital proof of ownership. It is the two properties of scarcity and secure proof of ownership that can dematerialize and digitally display valuable individual objects in addition to money. These individual digital objects and the ownership of them are known as NFTs, Non-Fungible Tokens. The digital art and collector’s market plays a major role here.