What are NFTs, and how to mint NFTs on Opensea in 3 simple steps

What are NFTs?

As we just mentioned, the meaning of an NFT is a non-fungible token, representing a unique digital item on blockchain. You may have heard the concept of NFTs primarily associated with the digital art and collectibles market, but it extends to other domains like virtual real estate, digital goods, and more. 

Here are the three main components of a non-fungible token:

• Blockchain hash: A hash is a unique combination of characters that identifies an NFT. It also aids records of ownership and transaction history, taking care of the authenticity and tracking aspects. 
• Metadata: Metadata provides all relevant information about an NFT, such as its creator, what the asset is about, its size and dimensions, date of creation, current ownership, and more. 
• Image Storage URL: More often than not the digital item represented by a non-fungible token (think of a piece of art or a collectible like a trading card signed by a cricketer) is not stored directly on the blockchain to optimise storage and costs. In these cases, the NFT carries a URL/URI that points to where the digital item is stored online. This might be a decentralised storage like the IPFS (InterPlanetary File System) or a traditional web server. 

How is NFT different from regular crypto tokens?

A dead giveaway is the name itself - an NFT cannot be replaced by another token of its own kind. An NFT’s hash is what makes it non-fungible, as no two NFTs can possess the same hash, and they often have varying value. On the other hand, your regular crypto tokens like bitcoins are fungible - so if you replaced one unit of bitcoin with another, there is no difference of value, characteristics, or anything else between the two units.

Distinctions not clear enough for your liking? A table is our favourite solution:

What does this all tell you? While both NFTs and regular crypto tokens are digital assets existing on a blockchain, their uniqueness, divisibility, and applications clearly set them apart. 

Real world use cases of NFTs

Let’s expand upon that applications bit: where may you find NFTs being used?

• Digital art and collectibles: Creators mint digital artworks and collectibles as NFTs, which buyers can collect or resell.  
• Sports memorabilia: Adding to collectibles, sports organisations and athletes may choose to issue NFTs that represent digital memorabilia like highlight clips, autographs, and virtual meet-and-greets. Essentially, enhanced fan experience is the goal.
• Gaming: Blockchain gaming is catching hype, and NFTs are at the forefront, allowing players to own in-game items and have them retain their value outside of the game. These assets can be bought, sold, and traded on NFT marketplaces, adding a brand new economical angle to gaming. 
• Real estate and virtual land: In metaverses, NFTs can represent ownership of virtual properties, which users can trade and lease just like physical property transactions. 
• Entertainment and music: Again, performers and brands in these sectors can use NFTs to create unique experiences and items, like concert tickets, exclusive recordings, and merchandise. 
• Identity and credentials: NFTs can stand for digital identities, certificates, and credentials, ensuring authenticity and bringing ease of verification.
• Content licensing: Content creators can use NFTs to license their work and receive royalties. Smart contracts can further ensure fair compensation. 

The 2021-22 NFT madness 

Now, away from the NFT use cases, there’s quite a lot about the early 2020s NFT mania to know. Just for fun, here are some NFT sales bound to leave your jaw hanging open:

• Clock by Pak and Julian Assange: This is a piece that counts down the days since the WikiLeaks founder Julian Assange was imprisoned, and was created to raise funds for his legal defense. The NFT was bought by AssangeDAO where over 10,000 people pooled together their money, at $52.7 million. 
• Jack Dorsey’s first tweet: Former Twitter (now X) CEO Jack Dorsey had turned his first tweet into an NFT on Ethereum, sold to crypto entrepreneur and Iranian investor Sina Estavi for a whopping $2.9 million back in 2021.
• Everydays: the First 5000 Days by Beeple: A widely renowned NFT artist, this particular artwork of Mike Winkelmann or Beeple is actually a collage of 5000 pieces of his work that he started creating back in 2007. It sold for $69.3 million, becoming the second most expensive NFT of all time (or so far).
• Justin Bieber’s Bored Ape NFT: You find his name in the most unexpected of places, so here Bieber is. He bought one NFT from the infamous Bored Ape series for $1.3 million in 2022. 

How to mint NFTs: mint an NFT on OpenSea in 3 steps

If you have a particular asset in mind to convert into an NFT, we can help! Here are 3 simple steps for you to mint your NFT on the largest NFT marketplace: OpenSea!

1. Step 1: Connect your wallet and go over to ‘Mint an NFT’
2. Connect your Metamask or any other blockchain wallet that has a minimum balance of 0.5 MATIC on Opensea, and click on ‘Create’ 

1. Select ‘Mint an NFT’

1. Step 2: Fill in the Collection information
2. Under ‘Create an NFT’, add your Collection information

1. Click ‘Create a New Collection’ and then upload the logo, fill in the token and contract information, and select a blockchain of your choice. For the purpose of this tutorial, we are selecting Polygon (MATIC)

1. Sign the transaction through your Metamask wallet, or any other wallet

1. Your collection is now created

1. Step 3: Create and Mint your NFT
2. Fill in the NFT information

1. Click on ‘Create’

1. Sign the transaction

1. Your NFT can now be listed for sale!

Yep, creating NFTs is that easy. For more information on the world of crypto and blockchain, India Crypto Research  is your destination!