Right about now, you may be asking yourself, so what is an NFT anyway? How can it help my business? You’ve likely heard something about NFTs, whether it be on the news, in a blog, or even on social media. You may even be saying to yourself, great, another form of blockchain that I need to know and learn. Lucky for you, we are here to simplify it and by the end, you will be a pro in all aspects of NFTs.
NFT stands for Non-Fungible Token. Now we know that probably still doesn’t make much sense, so let's break it down even more. The “Non-Fungible” aspect means it’s unique and cannot be replaced with anything else. For example, if you were to trade a bitcoin for another bitcoin you would still have the same thing as you did before the trade but, if you traded one piece of art for another you would have something different than before.
Another important piece of the puzzle is that NFTs, for the most part, are part of the Ethereum blockchain. Keep in mind it doesn’t have to be this type of coin — in fact others are on the rise. Blockchain, in its simplest form, is a form of technology that is unhackable based on the mathematics of cryptography. Ethereum is a type of cryptocurrency similar to bitcoin and dogecoin. The difference between these other currencies, though, is that NFTs store extra information that make them unique. NFTs are also worth whatever someone believes they should be valued at and can vary widely in price.
It’s important to note what can and can’t be traded as an NFT. In broad terms, NFTs can really be anything digital from music to drawings, to one-of-a-kind art pieces but, the one form of digital content that has gained the most traction is digital art.
This then leaves you with the question of, well, can’t I just download a copy of the artwork on the computer right now and it will be mine? And the answer to that is yes and no. Sure, anyone could download a copy of the art with an NFT attached to it, but the NFT gives you one thing that can’t be copied: the ownership of the artwork. Think of it in terms of physical art. Anyone could go and buy a digital print of a Van Gogh painting, but only one person has the original copy.
NFTs serve purposes from three different perspectives: the artist, the buyer, and the collector. For the artist, NFTs open a completely new market, allowing them an avenue to sell their artwork that they would have struggled to find in the physical world. NFTs also offer a feature where artists can earn a percentage every time the NFT is sold. From the perspective of a buyer, NFTs allow you to support artists that you may like, earn your basic user rights, and if you get lucky, the potential to buy NFTs and resell them for a higher price. Last, but not least, there is the collector. Just like any other piece of art, over time the value of it can increase. So, if you end up being one of the fortunate few that has obtained an NFT, it could be worth millions one day.
Although the future of NFTs is ever changing, we do know that the metaverse is here to stay. We may not know the true future of NFTs, but we do know that NFTs have opened a door for other blockchain technology that will be used in future valuations of assets. Whether you want to be a part of history in the making or not, we all better get familiar with these new forms of currency.
NFTs aren’t for every business. With that being said, if you work in a creative environment, you should consider creating and selling NFTs. Some ideas to incorporate NFTs into your business include:
With these ideas in mind, you can get a better understanding of if NFTs are the right fit for your business and if so, it is time to start designing.
Now that you have an understanding of what an NFT is and how it can benefit your business, it is time to get started. Here’s a step-by-step guide to lead you to NFT success:
A Metamask is a Chrome extension that serves as your virtual wallet, which allows you to buy and sell artwork on the blockchain. Once you have created a wallet, you are going to need to add some ETH to the wallet, which can be purchased with a credit card through exchanges such as Coinbase, Kraken, or Binance. Once purchased you can transfer it to your wallet (which can take up to 5 days) and you are now ready to mint!
Next, you need to find an NFT marketplace that is best suited for you and your business needs. Three of the most popular NFT marketplaces to help you get started are OpenSea, Rarible, and Foundation. Of all 3, OpenSea is the most democratic and user-friendly platform. No verification is necessary, anyone is able to upload their work, and all it takes is a click of a button. After paying a one-time gas fee of around $50-$100, you can start minting your NFTs for sale. This marketplace consists of mostly digital collectibles rather than individual artworks. Rarible and Foundation on the other hand are more exclusive because of the cost to mint each piece of work and other barriers to entry. If you, however, are a well-established artist with a strong following, these marketplaces would be the perfect place for you.
Once you have decided what NFT marketplace is the best fit for you, you can start listing your digital creations for sale. All you need to do is upload your design onto the marketplace and voila, your NFT is ready to be listed.
With all this information now at your fingertips, there is no time to hesitate. Now is the time to capitalize on this new form of digital currency and stay ahead of the competition. And, if you need some help getting ideas flowing, reach out to us to learn more.