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- First What is An NFT? (NFT Meaning Explained)
- History Of NFT
- What Is The Use Of NFT?
- NFT Use In Arts
- NFT Use In Domain Name
- How To Create An NFT?
- NFT Marketplace (Opensea)
- Step by Step Tutorial On How To Create An NFT
- Frequently Ask Questions About NFT
Have you heard about an NFT? You may see topics about it on social media like Twitter, Facebook, and Youtube.
You might even hear about NFT in some news or any publication on the internet.
One of the things about NFTs that broke the internet is a GIF called “Nyan Cat”. It’s a famous internet meme that start in 2011. It’s a cat with a pop tart body, flying with a rainbow in an open space.
In Feb 2021, the Nyan Cat is sold for $590,000 in an auction. Many people might think “how on earth does GIF meme sell for that kind of price”?.
Then in March 2021, the first tweet from the founder of Twitter Jack Dorsey sold for $2.9 Million, then a digital collage named “Everyday-The First 5000 days” was sold for a whopping $69 Million.
But the question— is what are they? why did some buy it at that kind of price?. All the answers to your question can find in the meaning hindered in the three-letter word called “N.F.T”
NFT seem a bit strange, but honestly, it will play a huge part in our digital economy. It’s important to have a basic understanding of it.
You can say what you want about these crazy trends—– like it or hate it but honestly, NFT will be a part of our digital future.
Instead, to try to resist it, we must embrace the future and tried to find some ways how can we earn money in this new trend called “N.F.T”.
First What is An NFT? (NFT Meaning Explained)
NFT stands for Non-fungible token, meaning it is not interchangeable.
To fully understand, let’s take this as slow and clear as possible, let’s create some examples between a fungible and a non-fungible one.
Let’s begin with a fungible item, when we say fungible it is an item that is interchangeable or can be replaced by another identical item. One good example is a dollar bill.
We can say that a one-dollar bill is always equal to a one-dollar bill, and we can divide a dollar into a smaller denomination, a one-dollar can be replaced by a smaller denomination called cents, we can replace one dollar with 100 cents but the value will still remain.
Even cryptocurrency like Bitcoin is also an example of a fungible item, one Bitcoin is equal to one Bitcoin, and Bitcoin can also be divided into small denominations called a satoshi, we can exchange 100 million satoshis for one bitcoin and the value will remain the same.
Then let’s now define a non-fungible item, when we say non-fungible we are referring to things that are not interchangeable, meaning cannot be replaced, we are referring to the items that have different value to other items or we can say a rare item.
For example, in the famous painting Monalisa, let’s supposed that I’m an artist, and I accidentally destroy the original painting Monalisa, can I make another Monalisa? The answer is No, even If I can create an exact copy, it will not be authentic.
Some examples of non-fungible items in real life are real state, and domain names even though it is a digital item, it is still a fungible item—-why? Since a value of a domain name will vary to the needs of the person who will buy it. Other examples are limited edition items and collectibles, on which the values are based in the eye of the beholder.
In the digital world, Non-fungible are items like NFT artwork, tokens that represent digital items, virtual lands that you can usually see on NFT games, in-game items from NFT games, and crypto domains, all of these digital items are backed by blockchain technology (mostly Ethereum) that make them authentic and irreplaceable, based on the quantity that is made, demands, and scarcity of the items
Blockchain technology like Ethereum stores all the information of the digital assets like ownership, or who sold it, making the items so unique, secured, and authentic.
Digital items that are backed by blockchain are not temperable. It simply means all the information about the items cannot be changed by force, so all the necessary information in the NFT will remain.
History Of NFT
The Bitcoin 2.X-2012
The concept of the NFT started with a guy named Yoni Assia, CEO of Etoro published an article about bitcoin 2.X(Colored Bitcoin) in 2012. He stated in his article about the new economic framework.
The idea is to create a separated bitcoin network, a new currency called colored bitcoins.
These colored bitcoins are ordinary bitcoin that are transferred in the genesis transaction which makes this colored coin a rare coin, and since colored Bitcoin is also an ordinary bitcoin, it can still be transferred using the ordinary bitcoin networks. But its value will depend based on the supply and demands of this rare coin.
These colored coins are not perfect, it has many flaws and those flaws are the reasons why colored Bitcoin didnt work, but it doesn’t mean that it’s useless. The concept of these colored bitcoin servers is a stepping stone to something huge.
The Counterparty Released-2014
In 2014, the better version that is based on the concept of colored bitcoin came to life when Counterparty.io emerged.
It is a peer-to-peer financial platform that is known as a decentralized ledger, the counterparty is the first to fix some of the problems of the colored bitcoin concept. In the same year 2014, the first Non-fungible token is created by Kevin MacCoy and Anil Das called the “Quantum”.
But the decentralized ledger and the creation of the first Non-fungible token are not enough to catch the attention of many. Not until the meme economy started on the internet.
When the meme economy has broken out, people on the internet started to trade Rare Pepe. It was the first crypto art recorded on counterparty, that has been traded on a larger scale in 2016-2018. Rare Pepe is being traded for $100 to $1000, and this crypto art is now known as a Non-fungible token.
The year 2017 is the year when the cryptocurrency become massively popular when Bitcoin reached $19,783.06. The success of Bitcoin is also the success of the cryptocurrency.
One that benefits from the success of bitcoin was Ethereum, the second most valuable crypto, next only to Bitcoin.
Since Ethereum is the second most popular cryptocurrency, NFT creators at that time embrace the Ethereum decentralized ledger. In fact, the Ethereum blockchain is the best choice for smart contracts and ledgers, even to this day, Ethereum was still the king of NFT.
Crypto Punks- 2017
In the same year 2017, two developers from Larva Labs named Matt Hall and James Watkinson, create the now-famous NFT art called “Crypto punks”, these digital artworks are originally given as free NFTs for those who own Ethereum wallets at that time.
Now, these crypto punks are sold for a huge amount of money, but why? you might ask.
Well, there are 10,000 Crypto Punks that are made, but this digital artwork serves as an inspiration for the modern non-fungible token art on the Ethereum blockchain.
Since Crypto punks are iconic and many have credited this artwork that playing a huge role that popularizing the use of a Non-fungible token.
Crypto punks are iconic and it’s the main reason, why a lot of people are willing to pay a huge amount of money just to get one of these, this crypto art serves as a collection and memorabilia of the past, and a part of the history of a Non-fungible token.
What Is The Use Of NFT?
NFT Use In Arts
Non-fungible tokens have many uses, from digital artworks to domain names, and even video games, blockchain technology in a Non-fungible is very promising, and to know its uses, let’s now explore the use of NFT.
The use of the non-fungible token in artworks helps the artist to monetize their art in the digital space.
In the real world, artworks like paintings cannot be copied, but in the digital world copying an artwork is as easy as one, two, or three.
Click, copy, and paste can be done in just three easy steps, click, copy, and paste and it will be hard to distinguish the original copy.
Another examples are memes, a lot of people love memes since they will intensify the conversation on the internet and even bright good vibes by bringing laughter to someone who will find it funny, but internet users are massive in numbers.
Let’s assume that you create a very funny and original internet meme that goes viral, but since the internet is very wide, someone will copy your meme, and you will not be credited for creating those memes that go viral.
Same the digital artwork, it can easily be stolen on the internet. Thanks to blockchain for solving that problem, by the use of blockchain technology, digital items like artworks or memes can now be protected by converting them into a non-fungible token, a token that represents your artworks or digital items, storing their information like ownership, the date when its made, who sold its.
Using non-fungible tokens in digital artworks, enable’s artists to sell and monetize their art.
By the use of blockchain technology, all digital items that are minted will be converted as Non-fungible tokens that are unique, and authentic that cannot be replicated.
Only the artist or the holder of the digital art will remain the owner unless it is sold to another holder.
NFT Use In Domain Name
Non-fungible tokens can also be used in a domain name.
The traditional domain name is not owned by anybody, when you bought a domain name, it was said that your own the domain name, but actually it is not.
When you purchase a domain you only own the right to use it as long as you are able to renew the domain name before it expired.
But in an NFT domain, once the domain is minted, it will turn into a Non-fungible token or what we called an NFT domain, all the information about the domain is stored on a blockchain.
In a traditional domain, users need to pay a renewal fee to have the right on using a domain name, but in an NFT domain there is no renewal fee, users just need to have a one-time payment for registering an NFT domain, and after the registration and minting process, the owner has now full control of that domain forever
The use of NFT in a domain is promising, and many agree that domain NFT is the future of the internet, together with web3, and decentralize web hosting. NFT domain name might be the future of the internet but for now, the internet itself is not yet ready for it.
When you try to use the NFT domain today, you will be facing some problems, like indexing on Google, which means your website that uses an NFT domain will not appear in Google search which will hurt your businesses online.
But purchasing an NFT domain for the future is a good investment since you can hold a domain name and wait for the right time when the internet is ripe and ready for the NFT domains, or you can hold the domain and sell it for a much higher price in the future.
Holding a domain name and selling a for a much higher price is not new at all. A lot of people are doing it, and it is called “Domain flipping”
I can see the better potential on the NFT domain for flipping business in the future, so it is much better if you get a really good domain name and sell it at the right time, for more information about domain flipping business, you can read my previous article called “ A Beginners Guide On Domain Flipping”.
NFT Use In Games
Aside from the use of Non-fungible tokens in digital artworks, and domain names, it has also been used in games, in fact, the use of a Non-fungible token on a video game is almost perfect.
Back in 2018 when I see the movie called “ Ralph Breaks The Internet” I had been dreaming of one-day games will have in-game items that have real value in the real world, like in the movies, where Ralphs and Vanellope’s goal is to win the race and get the rare car, which can be sold into real money.
Then NFT games appear, and I was so happy that the dream is now a reality, gamers can now own in-game items that have a real value in real life, and players can now earn by just playing games, and all of it is made possible by NFT.
The use of blockchain technology in the game is revolutionized, it gives players actual ownership of a game item that they owned. How does it work? Well, it goes like this, NFT used in the games are depending on the game creators, of what is allowed to become an NFT.
Some other games like “Lost Relics’ have some rare items or artifacts that are being scattered in the game, once a player hand those artifacts they can sell them in the marketplace since the artifacts are NFTs that have value in the real world, enabling players to earn money from it.
Items like this are backed by blockchain it is NFT, some items that are rare have very limited numbers like a sword in Lost Relics called “Nova Ultrus” there are only 20 those Sword are made, and all the information is stored in the blockchain which cannot be altered, the rarity of the item is controlled by blockchain, which is a good innovation for creating an in-game item that has value in the real world.
In addition, the use of NFT in an in-game item like Lost Relics gives the players complete control over the items, and they can even use the NFT items in some other NFT games supported in the game multiverse.
Related Content: List of the Best NFT Game (Play to earn)
How To Create An NFT?
There are various ways to create an NFT, and some are even a bit technical, but I found ways not just to create your own NFT easily but also to create your own NFT for free.
Yes, it’s free, but before we start, you need to have your own art such as digital photos, or digital art that we will be minted to create your very first NFT.
You will also need to create your own NFT wallet, I recommend using Metamask since it is the most popular, and widely use Ethereum wallet for tokens, ETH, and NFT.
If you don’t know how to set up your Metamask Wallet, I already created a tutorial on how to set up your Metamas wallet you can check it out in this article “Metamask Wallet Tutorials” it will guide you on how to set up your Metamask Wallet, add polygon network, and connect Metamask on Opensea.
NFT Marketplace (Opensea)
If you don’t know what an Opensea is, it is a massive and most popular NFT marketplace for you to create, trade, and buy NFTs.
There is some NFT marketplace, but I recommend starting on Opensea since it is the most widely used, and user-friendly when it comes to trading or selling NFTs.
Now that you have successfully created your own Metamask Wallet, let us now proceed to create your very own NFTs.
Step by Step Tutorial On How To Create An NFT
Step 1: Go to OpenSea Website
First, type Opensea.io on your browser, then connect Opensea to Metamask, after that click profile to get access to your Opensea dashboard, the dashboard allows you to control all of your NFTs that are on sale
Step 2: Create You Collection In Opensea Marketplace
Next, in your Opensea dashboard, Head over to your profile, then click my collection, let’s assume that you don’t have a collection yet and create a collection, just click the blue button “create collection”, and upload your logo, and you can upload any logo that you want.
In my case since this is just a tutorial, I will use the same photo that I will be minting as NFT.
Step 3: Fill up Info Of You Collection
Fill up the necessary information when creating a collection such as the name of your collection, description, add category > percentage fee > and add your Metamask wallet address.
Then for the blockchain choose polygon > then hit create button.
Step 4: Mint Your NFT
Now that we already created our first collection in Opensea, let us now mint the item to convert it into an NFT.
Just click create button at the upper part of your dashboard > upload the image, video, audio, or whatever items you want to mint > place the name > description > select collection > choose blockchain (Polygon) > then hit the create button. You now have NFT items.
Step 5: Sell Your NFT
Now that you have minted the items into an NFT, you can now list the NFT item for sale in the Opensea NFT marketplace.
To list your NFT items for sale just click the “Sel button” at the upper right part of the dashboard > enter your desired amount in Ethereum > click the complete listing button, and that’s it, try to promote your NFT art on social media, good luck.
To fully understand the step by step on how to create an NFT, watch the video tutorial below this line.
So that’s it, all of the things that you need to know about NFT, I hope that learn something from this article of mine, I tried my best to give you the information that you need about NFT, the meaning, the history, and how to create your own NFT.
If you like this content, you can consider buying me a drink and I will truly appreciate it, thank you, and have a nice day.
Frequently Ask Questions About NFT
What does NFT mean?
NFT stands for Non-fungible token, a token that represents a digital item such as digital paintings, GIFs, NFT domains, In-game items, or crypto-based tokens. etc
What is the use of NFT?
The important use of NFT is to become a digital item to be unique and authentic, all the information about a minted NFT items are stored in a blockchain, like who owns it and who sells it.
How do you make money with NFT?
There are many ways to earn from NFT especially if you are an artist, you can convert your digital art into an NFT and sell it in the NFT marketplace.