The world is just talking about NFT. A regular gif can be sold for a few thousand dollars. Hundreds of thousands and millions of dollars are being signed with NFT. And the trend has unrealistic potential for development. More and more artists are turning to using the NFT website to monetize their work. In this article, we will explain what NFT is and how it affects the modern world.
What is an NFT?
Simply put, NFT is a unit of data in a blockchain where each element is unique and cannot be replaced. This technology provides a unique digital signature and ownership, so NFT began to be widely used in the field of digital art to declare ownership.
With NFT, you can sell almost any virtual object – images, music, texts, 3D models. But most of the time it’s about digital art. That is, NFT is the ownership of a digital object.
How does it work?
And if we’ve already talked about the essence of NFT, then we need to consider how it all works. From a technological point of view, an NFT asset is a digital certificate attached to any “digital product”:
- audio, etc.
This certificate (token) will contain all the information about the product and Sandmilk can help you with this business. Thanks to the token, we can find out who created the product or who now owns it, because the tokens are stored in an open blockchain, and because of this information about the product, the history of its operations will always be available and reliable. So, this is an ideal opportunity to claim your rights to any unique object. Moreover, the certificate is completely transparent, thanks to the blockchain. Everyone can trace the history of the token from creation to the final owner. These are the most transparent transactions.
The market for digital art
Due to the high popularity, there are platforms that allow you to fully earn on creativity. Each such NFT website is open to talented artists. You can sell and buy NFT objects on various open blockchain platforms. There are “closed” platforms, which can be traded only after confirmation of identity.
In general, NFT objects fall into several main categories:
- art: paintings, images, gifs, photographs;
- sports: cards, rollers, car parts;
- finance: options, insurance;
- games: characters, cards;
- domain names;
- elements of the metauniverse or entire metauniverse;
- real estate;
- words and tags, music, videos, memes.
NFT tokens are also widely used in domestic shopping games to prove ownership of virtual items – armor kits, weapons, buildings, and skins. This is necessary, first of all, in order for players to be able to transfer items between their accounts, resell them, as well as to declare possession with the help of tokens. However, players do not have the copyright to these items, they are still in the company-developer, however, the NFT token confirms the indisputable ownership within the system.
How to create and sell an NFT token?
And as you already know, any digital file can become an irreplaceable token. An NFT object differs from a real one only in that it was first digitized in a blockchain.
If the object is physical, it must be converted to digital:
- take a picture of;
- scan on a 3D scanner;
- shoot video;
- make a sound recording;
- reproduce images of a physical object using 2D or 3D graphics software.
Preparing for sale
Before you start bidding, you need to determine the points that will affect the future action plan and directly on sales revenue.
Evaluation of NFT tokens is a subjective question that only the author can answer. So far, there are no clear rules for determining the value of digital art, because the field is still too young and little time has passed to develop standards. But practice shows that the smaller the number of copies of one NFT, the higher its value.
Platforms for sale
There are already dozens of them, but there are few really popular marketplaces, like Sandmilk, where you can make money on NFT. Most of them use the Ethereum blockchain.
These marketplaces use different bidding models:
- auctions, where the starting rates and the deadline are set by the seller;
- selling NFT at a fixed price.
Investments in digital art are very high: you will have to invest not only in the cost of NFT but also in your transactions. If you choose a platform for sale on the Ethereum blockchain, the price for one transaction can reach 20, 30, 50, or even up to 100 dollars. Therefore, under such conditions, it is difficult to expect mass adoption of NFT on this blockchain.
How to sell an NFT token?
To put up for sale works in the form of NFT, the author must first meet several conditions: register on the site of the desired platform and pass verification.
The platform can request links to social networks and check NFT for authorship. Respected marketplaces control all non-replaceable tokens that you download.
The next step will be to set up a cryptocurrency wallet, which is required by each platform. Next, you need to deposit a certain amount in the wallet for transactions, ie to create each NFT token.
Next, on the marketplace in the personal account, you need to perform the following actions:
- download NFT;
- give the token a name and make a description;
- indicate the bidding model;
- set the number of units to sell the token.
And then there is the sale. You can sell NFT for different cryptocurrencies, it all depends on the platform.
So, if you are an art connoisseur, you can make a good living selling digital art. If you are an author, you can earn not only by selling your masterpiece but also by further resale in the form of royalties. But for this, you will have to actively promote your work on cryptocurrencies and marketplaces, paying for their placement and transactions. But when your brand is promoted, you can get a lot of money – from a few tens to several thousand dollars. World-renowned artists have a chance to make millions here.