It would be quite surprising to know that a GIF file was recently sold at a price of 600,000 dollars at an auction. If it comes as a shock for you, then it is time to reconsider the definition of fine art and start exploring the world of crypto and non-fungible tokens or NFTs.
NFTs or non-fungible tokens can simply be thought of as a digital certificate of authenticity. When some pieces of classic works of art, antiques, and other historical items are sold at auctions in the real world, they come with a certificate of authenticity certifying that they are genuine. Non-fungible tokens or NFTs happen to serve the purpose of the certificate of authenticity but for digital items in the virtual world of the internet.
NFTs allow GIFs, JPEGs, MP3s, videos, and almost any other file format to be certified as one-of-a-kind. This technology helps in enabling a new type of ownership for digital files in the virtual world of the internet that was not possible previously. NFTs can be bought, collected, sold, and even destroyed like any other physical item. As the NFTs are on the blockchain network, they come with a completely transparent transaction as well as a pricing history that is visible to anyone with an internet connection.
Now you might be thinking about how to create NFT digital art. The process of transforming your art into an NFT is known as minting. It refers to the process of creation of a new token on the Blockchain that will remain attached to that content forever. At the time when an artist mints a new NFT, they attach a built-in commission that usually ranges from 10 to 30 percent which they will receive when that work is resold in the future.
Requirements for Starting to Create an NFT
To create an NFT, you do not require in-depth knowledge of crypto. But you need to have an idea about a few tools needed to get started such as a crypto wallet and Ethereum. So, here are a few steps to follow to get going.
Setting up an Ethereum Wallet– The first step towards the NFT journey is the creation of a digital wallet where the cryptocurrency used for buying, selling, and creating NFTs is securely stored. The wallet also allows the users to securely and safely sign in to create accounts on NFT marketplaces. There are a number of platforms that offer free wallets to store cryptocurrency. Most importantly, they work with most of the major NFT marketplaces as well as blockchain apps. A few good ones are Coinbase Wallet, MetaMask, Rainbow, etc.
Buying a Small Amount of Ethereum– Most of the major digital art marketplaces charge some fees for turning your content into an NFT. So, it is required to buy some Ethereum for the purpose of covering the costs for the creation of the NFT. The price of Ethereum fluctuates every second and hence it is very difficult to track the same. The easiest way to get started in this regard is by choosing a dollar amount that any user is willing to invest and purchasing that much Ethereum.
Connecting the Wallet to an NFT Marketplace– Once the wallet is set up and Ethereum is purchased, it is time to choose a marketplace where the user wants to create an NFT and list their work. Rarible happens to be an excellent marketplace for creators who are just getting started with NFT.
Creating an NFT Digital Art
Once the above requirements are met, you can start with the process of creating an NFT digital art.
Step 1 - Making a Digital Art File for the NFT
There is actually no single technique for creating a piece of NFT digital art. If the file created by a user is supported by the marketplace where the content is supposed to be listed, then it is going to work as an NFT. This, in turn, provides an opportunity for the content created to be monetized. Any image, text, JPG, MP3, PNG, or GIF can be an NFT. The users can make use of different tools to create digital art in order to make it look more interesting and attractive.
Step 2 - Pricing the Art and Listing on a Marketplace
After the digital art file for the NFT is created, it is required to be added to the chosen NFT marketplace for the purpose of minting the image as an NFT which is as simple as uploading a video to YouTube. Once you start the process, the platform will ask whether to mint the work as a one-of-a-kind piece or as a collection of multiple items. Then the required fees that come with the creation of the new NFT need to be paid and the piece of digital art goes live on the marketplace within a matter of just a few seconds.
Step 3 - Waiting for Bids
After the NFT digital art is listed, anyone on the platform can view it and place a bid for the NFT. The discoverability of the NFT greatly varies across the major NFT marketplaces. Thus, it would be a very good idea to promote one’s listings. Once the bids are made, the users can sell their NFTs as per the most suitable bid.
Once you have decided to create an NFT digital art, it is to be kept in mind that it is quite expensive. Turning a content piece into an NFT needs a new one-of-a-kind digital coin to be minted on the blockchain. Creating this coin needs a complex computational task that involves an entire network of computers. The use of the Ethereum network for the purpose of minting the NFTs comes with a “gas fee” for the energy as well as the effort which goes into that computation. This fee fluctuates every day and in some cases, it might be well over the sale price of the work itself. Thus, it is important to be prepared with the overall costs involved before getting into the business.