• Andrew Craig, at Content Writer


• 05.02.2023 06:30 pm
undisclosed

NFTs, or non-fungible tokens, caused a storm following their release. They were enormously popular amongst people both inside and outside the crypto industry, and many sold for insanely high prices. Did you know that one of the most expensive NFTs, Pak’s The Merge, sold for an eye-watering  $91,800,000?

In 2021, the popularity of NFTs surged to such an extent that it was even listed as the word of the year by Collins Dictionary. But, in the grand scheme of things, the popularity and hype around NFTs didn’t last long.

As crypto prices plummeted in a crisis-riddled 2021, the hype around NFTs dropped off massively as investors battened down the hatches and placed a bigger focus on their investments. 

However, they haven’t gone away, and many people are eyeing a resurgence of cryptocurrency, which will most likely see an equal rise in interest in NFTs. But how do you mint one? That’s what we’re going to cover in this beginner-friendly article!

What Are NFTs, and How Do They Work?

To many people new to the world of decentralised technology, an NFT might appear confusing. However, they’re actually pretty easy to explain. 

Firstly, pretty much anything can be turned into an NFT, from music and movies to art and even the cup you’re probably drinking coffee from right now (or are you more of a tea person?). The most straightforward way to get to grips with how an NFT works is to look at it as a digital certificate of ownership. 

These digital certificates of ownership are then stored on the decentralised blockchain. Once there, they then become a protected, enduring record that can't be altered. 

What’s the Difference Between Fungible and Non-Fungible?

The terms fungible and non-fungible are words not commonly used in everyday life and play a significant part in people’s lack of understanding of NFTs. So, let’s explain the difference in the most beginner-friendly way possible:

• Non-fungible is a term used to describe something uniquely special and not substitutable.
• On the other hand, Fungible is used to describe the opposite, such as a 50 Euro note. It’s not special and can be exchanged for pretty much anything. 

Here’s an example. Let’s say you have a 50 Euro note (fungible). It has a fixed value, and you can replace this with anything, be it another currency or something you buy with it. Now, let’s say that this 50 Euro note was signed by someone like Quentin Tarantino when he was in Europe filming a movie. 

Pretty special, right? It’s now classed as non-fungible because it’s a unique special item and worth far more than the 50 Euro base value it would have as a standard banknote.

The Art of Minting an NFT

The term “minting” is commonly used in the NFT space. This is used to refer to the procedure of posting your NFT on the blockchain. To do this, there are various different methods that people use, and each one can differ wildly depending on the market you want the NFT to be in and, of course, the price you’re willing to pay. But, generally, there are two things you’ll need to mint an NFT aside from the original thing you want to convert into an NFT, to begin with. 

• An NFT wallet
• An account on an NFT marketplace

Due to the surge in popularity of NFTs, there are naturally various marketplaces that have sprung up to cater for the demand. It’s important to do your research and find an NFT marketplace that suits your needs and goals and take into account things like:

• The platform’s reputation
• The size of its community
• The fees you will be required to pay
• Its level of usability and beginner friendliness

Detailing the wide range of marketplaces specialising in NFTs would require a whole other article. However, you can take advantage of popular crypto platforms like Bitcoin Up that can safely lead you into the crypto and NFT space.

Aside from your chosen marketplace, you also have to decide which blockchain you want to mint the NFT on. After all, any transactions made on a blockchain require a fee known as “gas”. The most widely-used blockchain amongst the NFT crowd is arguably Ethereum (ETH), but it’s also the most expensive. 

A smaller number of people are also utilising other blockchains like Polygon (MATIC), Solana (SOL), and Avalanche (AVAX). But, again, it all depends on which blockchain suits your needs and NFT goals best.

Interestingly, there is an increasing number of blockchain-based platforms that let users avoid paying any gas fees by ensuring they only record the NFT on the blockchain when somebody agrees and confirms to buy it. 

This is often referred to as gas-free minting, and usually, the buyer of the NFT foots the bill for any mint-related fees. Naturally, this makes selling your NFT much more unappealing to the buyer, and the process is more difficult.

The Upsides and Downsides of NFTs

The world of blockchain and cryptocurrency is still relatively young, and we still don’t know what the future may hold. However, NFTs are even younger, so this is especially true. 

Whilst nobody knows what is in store for the NFT industry, it’s undeniable that this is a revolutionary form of technology with serious potential. Many NFT advocates claim that NFTs have the power to fill vital roles in various facets of mainstream society, such as confirming ownership of artwork or securing storage of real estate records. Basically, they can revolutionise the current methods people use to own and sell personal property and assets.

NFTs and the Music Industry

One industry that NFTs have particularly impacted is the music industry. NFT advocates often claim that non-fungible tokens have the ability to give musicians a greater level of power and autonomy over their content.

For example, in an industry dominated by often greedy production companies and record labels that take significant portions of an artist’s revenue in exchange for their services, NFTs can help musicians get the credit they deserve for their work, whether that’s through greater recognition or better percentage of royalties stemming from their music. 

They achieve this by cutting out the middlemen in the form of record labels and production companies. Because, when an NFT has been successfully minted on the blockchain, it’s exceptionally straightforward to keep track of its authenticity as well as who made it and who previously owned it. 

Final Thoughts

2021 saw one of the wildest years for the NFT market and brought it to the attention of millions of people worldwide. Many people compared it to the dot.com bubble in the early days of the internet.

We saw relatively bog-standard forms of artwork becoming immensely valuable solely due to the reason that they were non-fungible tokens. And whilst interest in NFTs has dropped as a result of the dip in the crypto market, they haven’t gone away and still possess the power to become an integral component of the next era of the internet and remake the way we sell and own something.

However, if you’re going to get involved in the NFT market, it’s a solid piece of advice that you don’t invest in or mint NFTs just for the sake of it. Instead, utilise this revolutionary technology 

as a means to comprehend the worth of an item. 

Remember, whenever you mint an NFT, there’s a physical and environmental toll, and it’s never guaranteed that you’ll be able to make a profit, never mind the original costs of minting the NFT in the first place.