Although they’ve been around since 2014, nowadays, people spend millions of dollars on NFT collectibles, from art and music to sports trading cards, digital houses, game items, sneakers, and toilet paper. Have you heard about the iconic GIF of Nyan Cat sold as NFT, the famous NBA Top Shot collection, or Grimes getting millions for NFTs? Read on to get a detailed understanding of what an NFT is and how to make an NFT in a simple and easy-to-follow way. The market for Non-fungible tokens, or NFTs, was worth $41 billion in 2021, an amount close to the total value of the entire global fine art market. With the NFT frenzy still at its high, it's natural if you're eager to hop on the NFT train and learn how to create NFTs, mint your own NFT, etc., to benefit from the NFT mania. Fortunately, creating an NFT is not as complicated as you may think, and anyone with the correct tool and basic computing knowledge can create an NFT. Let’s get started! What Is an NFT What is NFT In the crypto space, we distinguish between two types of tokens, namely, Fungible and Non-Fungible tokens (NFTs). Fungible tokens are the ones that can be exchanged for one another, e.g., cryptocurrency tokens such as Bitcoin (BTC), Ethereum (ETH), etc. A Non-Fungible Token is a token that cannot be exchanged for another and is unique in nature. Non- Fungible tokens, just like cryptocurrency tokens, are verifiable on the blockchain; however, while one BTC is identical to another BTC, one NFT is not identical to another and is a unique asset existing on the blockchain. A non-fungible token (NFT) is a unique data unit on a blockchain that can be linked to digital and physical objects, such as works of art, real estate, music, avatars, JPEGs, postcards, sports trading cards, or videos, to provide immutable proof of ownership. NFTs allow individuals to create, buy, and sell digital assets in an easily verifiable way using blockchain technology. Once NFTs have been encoded, they cannot be altered, and their originality and legitimacy are validated through the blockchain. To understand it better, let's take the latest craze in the NFT world, the True Plebs NFT collection. It's a collection of unique 5555 NFTs that represents plebs in the crypto world. So anyone that owns one of those 5555 unique True Plebs NFTs will have their own NFT, which would be different from others, giving them a separate identity. NFT History The world's first NFT, titled "Quantum," was minted by Kevin McCoy, a digital artist on the Namecoin blockchain, on 3rd May 2014. It was a digital image of an octagon that pulsated and changed colors as an octopus does. This led to further research and development in the world of digital tokens, but not much progress was made until the advent of the Ethereum Blockchain in 2015. Since the Bitcoin blockchain was not designed to be a store of information about ownership of digital assets, Ethereum became the go-to place for NFT enthusiasts. Most NFTs in existence today are ERC-721 tokens developed in 2018. An NFT is governed by a smart contract that gives the token a unique identity and holds all the information about the NFT's history, ranging from creation date to its past/current ownership, etc. The data is used to establish the NFT's ownership, which is stored on a public ledger and is easily verifiable over the blockchain. Another standard for NFTs is the ERC-1155 standard used to decrease the transaction fee and storage costs associated with NFTs. It helps maintain the unique nature of the NFTs and lets the creators sign their artwork with their own digital signature in the metadata. One of the first and most popular NFTs was the Cryptokitties NFT collection, with each NFT having its own price in ETH. It was launched on the Ethereum Blockchain in November 2017 and, within a couple of weeks, garnered a fan base that spent around USD 20 million on them. Users could purchase, feed, and nurture those Cryptokitties and even have them reproduce offspring at their own price depending on the parents' price. What Can Be Turned Into an NFT OpenSea categories on NFT An NFT is a digital asset that can go as high as millions of dollars in value. So, you might be interested in how to make an NFT and sell it in the NFT marketplace. Any digital asset like digital art, music, digital file, etc., can be turned into an NFT. Similarly, any real-world asset like real estate or a car can be turned into an NFT. You must be wondering what the use of real estate or a car NFT is. The answer is simple, suppose you own a car, and you have created a unique NFT that has all the data about its ownership, usage, time of purchase, etc. Now, if you sell that NFT to someone, it means you're also passing on the ownership of the car to that person. The data about the sale would be stored on the blockchain, and the transaction would occur automatically when the underlying conditions in the smart contract are m
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