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NFTs: Unpacking the Hype by Exploring the Fascinating World 2023

In 2014, the first NFT was created by Kevin McCoy and Anil Dash, named Quantum. From there, we got the start of NFTs. Now, there is hype about different digital coins, trading, and NFTs.

Today, we’re going to go over a guide that includes What an NFT is? How do NFTs work? Why do they have value? Why do people buy NFTs? how to buy an NFT? How to sell NFT for big profits? and even How to make your own NFT. Let’s dig into it:

What is an NFT?

NFT stands for a non-fungible token. But what does that mean? Simply put it means that it’s a unique asset and cannot be replaced with something else.

For example, Bitcoin is fungible. You can trade one bitcoin for another bitcoin and you have the same thing. However, a one-of-a-kind trading card, for example, is non-fungible meaning that if you took the one-of-a-kind trading card and traded it for a different trading card, you’d have something different. So, we now know that an NFT is simply a unique asset that is not like anything else.

NFTs-non-fungible-token
Credit: coinpedia

How do NFTs work?

These NFTs are stored on a blockchain such as Ethereum or Solana. This is critically important as the Ethereum blockchain or any blockchain allows each digital asset to be verified as one of one. In other words, the blockchain allows NFTs to be verified as unique and validate who owns that NFT.

How Much Value Does an NFT Have?

The quick answer to that question is that the value of an NFT equals verified ownership plus, scarcity plus, utility plus, ownership history plus, future value plus, and liquidity premium. But we’ll not talk about it here.

You do not own the picture of any verified ownership is one reason, NFTs are such a groundbreaking phenomenon to put it in terms that might be easier to understand. If you had a painting of the same picture of any verified ownership, you would know that you own it because well, it’s in a picture frame hanging inside your house. And you can say, “Hey, this is my picture. It’s in my house. I own it.” But on the internet, it’s very difficult to show that you own something like the original version of this picture.

Anyone can right-click, save, and re-share that photo even though they don’t own it. So, verified ownership via the blockchain is one of the main reasons that people buy NFTs. But that’s not the only reason NFTs have value a flex is one small portion of it.

The next reason that people do buy NFTs is because they are scarce. There are only ten thousand of the board apes and those ten thousand. When we looked at any verified one of one piece, it means that there is no other JPEG that is verified on the blockchain. Because we know each NFT has a unique token id, that’s stored on the blockchain for everyone to see.

The third reason that people buy NFTs is because of their utility. Now there are dozens of ways an NFT can provide utility or use cases. But some of the most prominent utilities right now, are first membership access. It means that an NFT of a collection allows exclusive access to social groups, events, parties, other NFT projects, or even free airdrops from the NFT project. They have their own set of values.

Utility number two types can be used as game assets. And this is arguably the most prominent and biggest future potential of value for an NFT for utility, right now. Some NFT projects are already setting the path for the future of gaming. And they are releasing NFT characters that are playable in their games. This is very likely going to be the future of gaming.

Think about Fortnite or Cod or any other big video game, and buying Skins or characters in that game. You own those characters or those Fortnite Skins but bought them with V bucks or cod points. Whatever that game’s currency is and once you spend that money in the game you can never get it back. Now, with NFTs, you own those Fortnite Skins or those Call of Duty characters or whatever it is. If you wanted to trade or sell that rare Skin, you could do that for real-world value.

In this case, for example, if Fortnite Skins like this rare one were able to be owned as an NFT. You could go and sell that NFT for Ethereum which has real-world value. And you can only do that because you own the in-game asset as an NFT which is verified by the Blockchain. Right now, if you own Fortnite Skin, you could do nothing with it other than keep it on your account and leave it there forever if you don’t decide to play.

The last reason that people value NFTs is because of ownership history. Certain artists and owners in the NFT space have inherent value. For example, a major player in the scene is Beeple. He’s one of the biggest artist names in all of the NFT scene and has sold some of his pieces for over 50 million dollars.

Future of NFTs
Credit: bbc

A large part of the reason that those artwork pieces have so much value is simply because people’s name is attached to them. It’s similar to a Picasso painting or a Van Gogh. You know that those pieces have a ton of value because of the artist that made them. Similarly, certain NFT founders, collectors, and artists have a lot of clouts and inherent value that they bring to the projects.

All right that was a lot and we’ve only covered a lot of reasons that NFTs have values and why people buy them but I’m not gonna go over every single reason. I think by now you get the idea that NFTs objectively do have at least some value.  

Also Read: Adobe Buying Figma in 2023- An Exciting News for Users

How to Buy an NFT?

How to buy NFTs
Credit: cryptotimes

One of the most popular platforms for buying an NFT is OPENC. The most popular Blockchain at the moment is Ethereum and before you go and purchase anything, you need to set up a digital wallet first. And some experts highly recommend using MetaMask for this purpose.

Let’s see how to set one up. To get a MetaMask account it’s quite simple. Go to metamask.io. Go ahead onto their website and click download now. Also, you can have this as a Chrome extension or on mobile, on iOS, or Android but if you are doing most purchases, mints, or buying new NFTs, it’s probably best to have the Chrome extension and do it on a desktop.

As the mobile apps on a lot of websites right now connecting with mobile metamask is not the best experience you can also install it on Firefox if you use that if you use edge. Install MetaMask on Chrome. Click Add to Chrome>Add the extension. Once, you’ve added it, you can click Get Started. And this is where you’re going to want to set up a new wallet.

If you don’t already have one, click on Create a Wallet button. And then you click agree. Create a password. The next step, here is critically important so pay attention you can click next here. After it, you’ll get your secret recovery phrase. Do not show that phrase to anybody else. I would also never show that phrase to anyone else. Because this is your only backup for your account.  

If anyone else gets access to the phrase on your wallet, they will have access to all the funds in your wallet at any time. So, what you want to do here is take that phrase. Don’t screenshot it, don’t take a picture of it, and also don’t save it on a Word document. Write it down on a couple of pieces of paper. And I said a couple not just one. Because if you lose this, you lose your account forever.

Click next so go ahead and put the recovery phrase in order and just wrote it down as it is. Once you put it in correctly, click confirm. And there we are there is our MetaMask wallet.

Now there are a couple of things to walk through there because you’ll be using Ethereum. The good thing is MetaMask is already set to the Ethereum main net. So, you don’t have to worry about changing the blockchain that you’re on. If you want to go ahead and change your account name, you can click on account details. Go to name your wallet whatever, you want to name it. You’ll also get your QR code there.

So that, if anyone wants to send you payments, you can just send them a screenshot of this. They can scan your QR code and send you payments directly to your wallet or you can just copy your unique wallet address that will your unique wallet address. That money will come into your MetaMask account.

Now, you’ve set up your MetaMask account. Ye can come over to your Chrome extensions and you’ll see MetaMask under your extensions. I would recommend pinning it to your extension tab. So, you always have it easily accessible.

Just go to any of your favorite projects. When you are done selecting one, buy that and you’ll see the page on OPENC that looks like for pretty much NFT you’re gonna buy on the platform. Simply, click Buy Now, and then you’ll have to connect your MetaMask wallet to Openc. Once you click meta mask, it’ll open up a little window, and make sure you have that wallet address. Enter your wallet address and click Next. Then, click Connect button, it’s going to connect Openc to your meta mask and now your wallet is connected to Openc.

So, click Buy Now again and it will bring you to the Buy page. You can see the price there in US Dollars. Now you know how to buy an NFT.

How to Create and Sell your own NFT?

How can you sell your NFT? Although there are a bunch of different ways to sell NFTs. I’m going to show you how to walk through it easily and quickly. First, you’ll want to head over to openc.io. And then once, you’ve logged into your account, you’re going to click Create. OPENC will prompt you with a signature request which you’re gonna have to sign. Now you’re able to create a new item on the platform.

Now, your NFT can be anything, it can be a jpeg, a png, audiovisual, 3d models, or even a game. It can be pretty much whatever media you want to put on the platform. So, you go ahead and name the item. Write a detailed description because it is going to be for the listing. So, just make sure you describe what your overall project is about. Why it’s unique? Why it’s valuable?

The next part is setting up your collection. This can furthermore be a part of your collection. You can also add property levels, stats, unlockable content, and all kinds of different stuff.

The next really important section here is the supply of how many NFTs are in. We have discussed before there is only the option to do one NFT, which is exactly what a non-fungible token means it’s a one-of-one. So, the supply will have to be one for now. You can go and choose which Blockchain. On Openc, only Ethereum works and by proxy, it has Polygon which has a faster gas-free experience.

Put it on Ethereum because that’s where most entities live right now and that’s it. You are done already. You can click create and you’re gonna have your first ever NFT created. It’s now owned by you as you can see you’ll have the ability to edit the NFT or you can go and sell it on the marketplace right now for whatever price.

Conclusion

You see how easy it is to set up and sell an NFT on OPENC. There are major limitations to this method. It’s only one at a time and you can’t do any generative type content on here.

It’s basically whatever you have as a media file you can upload and make an NFT immediately and sell it. So, we have covered what is an NFT. How do NFTs work? How to buy, create, and sell? And how bright their future is? If you have any questions or you want to add more, do share that with us in the comment section.

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