11 things you absolutely Must KNOW about NFT’s
What is an NFT?
NFT stands for non-fungible token. A token is a unit of data stored in a digital ledger. Non-fungible means not interchangeable. Unlike fungible tokens which are interchangeable, such as currency, one Bitcoin can be exchanged for another Bitcoin, or one Ether for another Ether, they are indistinguishable and hold the same value.
Each NFT is unique and has a distinct value with a blockchain certificate of authenticity and therefore cannot be interchanged, as there is not another identical thing to exchange it with. This is why rare collectibles and art make perfect NFT’s.
What is Ethereum?
NFT’s forms part of the Ethereum blockchain network which is fuelled by a cryptocurrency called Ether, similar to Bitcoin. Most NFT marketplaces use Ether for selling and buying NFT’s.
What is an NFT Marketplace?
An NFT marketplace is an online platform where NFT’s can be minted, exhibited, viewed, and bought. It is important to find a marketplace that reflects your work. As the market develops, Art Collectors are increasingly more likely to prefer curated marketplaces which they find easier to navigate and more credible.
Where are NFT’s stored?
NFT’s are stored on a digital ledger referred to as a blockchain. The images themselves are stored on the Interplanetary Filing System (IPFS), which allows NFTs to represent data of any size and format stored in a secure, verifiable, and distributed way that can stand the test of time.
What is minting?
Minting is the process of tokenizing and creating your NFT. The technical aspect is handled by the NFT platform, usually requiring the artist to simply drag and drop their digital file onto the minting page of the platform.
What is lazy minting?
Marketplaces like Opensea and some others allow owners to create digital work without actually uploading the NFT onto the blockchain. This artwork is stored on marketplace servers and assists artists to sell works without paying gas fees for the minting of the artwork. Only once the artwork is sold, will the gas fees associated with the artwork be paid and will the artwork become an NFT.
If I mint an artwork on a marketplace can I only sell it there?
No, once you have minted an artwork, you own the minted work and all its metadata. This means you can embed it in your own website or sell it on another platform.
What are gas fees?
Gas fees are similar to transaction fees made by users to compensate for the computing energy required to process and validate transactions on the Ethereum blockchain. They are controlled by Etherium.
When can I expect to pay gas fees and do they vary?
When you set yourself up on a new marketplace (upfront gas fees)
When you mint an artwork (some sites allow minting to be done in batches).
Gas fees are determined by supply and demand, always double-check Etherscan before making your transaction.
What subject matter should I choose for an NFT?
Moving to NFT artworks can be daunting. Some articles will advise you to do your homework as some NFT’s are more popular and sought after by collectors. Popular culture and sci-fi NFT’s are quoted to be the most popular. But this is bad advice.
As an artist, you should be true to yourself and explore whether digital art has a place in your practice, and if so, really embrace it as a new medium for yourself, in your own way. Don't be tempted by the hype to make quick cash - the hype will fade, the market will mature, and the true artists showing quality, authentic digital work will make it.
What does burning mean and who can do it?
Burning a work is effectively destroying it. On the Artfundi marketplace, this can only be done if you are both the creator and owner of the work.
