What In Gods Name Is An NFT, Anyway?

Before I begin, allow me to clarify what an NFT is not.

An NFT is not:

1. A type of tea

2. "Just JPEGs"

3. A get-rich-quick scheme

4. A scam (granted, there are a few dubious projects out there)

Now that we know what an NFT is not, I think it's time to explore what an NFT actually is. But before that, I need to make something clear. This article is a three-minute read, and if you're not an NFT expert by the time you finish reading the last sentence, feel free to contact me for a refund of your time.

Now without further ado, let us begin.

NFT? What The Heck Is That???

NFT is short for "non-fungible token". A non-fungible token is a token that cannot be replicated or interchanged. Anything can be made into an NFT, including pictures, artworks, videos, songs, documents, you name it. One of the most unusual NFTs ever created is this tweet by Twitter founder Jack Dorsey. Jack sold his tokenised tweet-the first-ever tweet-on Valuables for over $2.9 million on March 22, 2021.

NFTs exist on a blockchain. A blockchain is a decentralised database containing transactional information stored in units called blocks and connected by chains, hence blockchain. Blockchains play a crucial role in the creation and proliferation of cryptocurrencies.

Okay?? How Do I Get Started?

How To Create An NFT?

Creating an NFT is as simple as N-F-T, and the process of creating an NFT is called minting. To mint an NFT, you need three things:

1. Adigital item that can be converted into an NFT (a picture, painting, video, audio, etc.)

2. Ablockchain wallet (also known as a digital wallet).

3. An NFT marketplace where you will mint and sell your NFTS.

Once you have an item that you will like to tokenise, you can easily create an NFT by going to an NFT marketplace like OpenSea or Rarible, creating an account, and uploading your item. You will need to connect your digital wallet, funded with cryptocurrency, to your account on the NFT marketplace to complete the minting process. I explain minting in more detail here.

The reason you need to fund your digital wallet with a cryptocurrency is that minting requires transaction fees. Just as banks charge users to process transactions, blockchains also charge a fee on transactions. On the Ethereum blockchain, these charges are called gas fees. Ethereum has the highest fees of any blockchain, and the cost of minting an NFT on Ethereum can range from a few dollars to hundreds of dollars, depending on the value of the transaction.

Ethereum is also the most popular blockchain for minting NFTs. However, other blockchains like Solana, Ronin, PolkaDot, etc., are gradually gaining ground and increasing their stake in the NFT market space.

The Conclusion

While NFTs are still relatively new, they are rapidly gaining popularity. New NFT projects spring up every day, and millions of dollars exchange hands on NFT marketplaces daily. The global NFT market is worth several billions of dollars, and by all indications, will continue to grow in leaps and bounds.

Congratulations on attaining NFT expert status!