Paying attention to NFT (Non-Fungible Token), which is the recent trend of Blockchain, are you? From cryptocoins to Twitter founder Jack Dorsey selling his first autographed tweet, NFTs have come a long way in recording the existence of assets on the blockchain. At some point or another, everyone has heard about the fascinating world of NFT art, a quick and easy way to sell art digitally. And must have thought – what is NFT? Or can you make a mint yourself? Or How to buy NFTs?
Before you do, here are 5 things you need to know before you DIY your art into a fungable token.
#1 What rights does NFT provide?
Before you actually mint your first NFTs, it would be wise to understand what an NFT is and what exactly you benefit from owning an NFT. an NFT. Ownership Naturally does not bring copyright. So are NFTs just about bragging about ownership rights? No, Oscar Gonzalez, a CNET reporter, highlights this, “The owner of the token has a record and a hash code indicating ownership of the unique token associated with the particular digital asset.” Simply put, anyone on the internet can download it and use it on their social media without raising any copyright infringement issue, but only the owner can sell the NFTs.
take the example of Nyan Cat, an animated GIF that recently sold for $5,90,000. The owner of Nyan Cat only has the ownership rights on Nyan Cat NFT and nothing more, while the intellectual and creative rights still belong to the artist who created it.
Nyan Cat is a typical example where the artist owns the work (not the NFT), while the NFT collector owns the original (digital) copy. Each NFT may have its own set of terms and ownership rules written by the person/artist who molds it. It would be worth mentioning here that an NFT, which is being written on a blockchain, has a complete record of its resale history. Thus, the original artist who created the NFT receives an automatic resale royalty every time the NFT is resold.
#2 Where to mint and sell your NFTs?
Minting is a process by which an object, whether it is a piece of art, a gif, tweet or even a ‘unique moment’, is authenticated on the blockchain (mainly Ethereum) by issuing tokens. The token is non-fungible, that is, it cannot be replicated, and contains a digital record of the item. Pretty easy to understand, right. But where to find your NFT? There are three important decisions you need to make before choosing your job:
- Blockchain: The choice of blockchain on which you want to build your NFTs determines how much gas fees you will have to pay for mining your NFTs. Most platforms run on the Ethereum network, where the ‘gas fee’ fluctuates with the demand of the network and the energy required to verify each transaction.
- NFT Marketplace: Most reputable NFT platforms today have a vetting process for NFT creators where artists have to go through an application process before they can mold their NFTs. platform like Rare And foundation work on this model. You need to consider that platforms with extensive vetting processes tend to attract more serious collectors than markets that allow either. NFT marketplaces with an identity verification process provide greater authenticity to minted tokens. While there are some marketplaces, such as Nifty Gateway, Neoorigin, Super Rare, etc., which are curated and ‘invite-only’. WazirX on May 31 launched India’s first NFT marketplace that works on an ‘invite only’ principle for artists and creators from India and other parts of South-East Asia. The mining process takes place on the Binance blockchain, the parent company of WazirX, analyzed and can later be transferred to other blockchains such as Ethereum. The sale is essentially via the WRX token – the native coin of the WazirX platform.
- Cost: Depending on your needs, you can choose an NFT platform that lets you mold your NFT art for free but charges buyers gas charges in a structured manner. This type of platform may be suitable for a creator who wants to create a large number of NFTs. However, if the creator is only interested in producing a ‘single’ master copy, they may prefer a platform that charges a one-time upfront fee.
Creators must also take into account the risk guaranteed by a particular blockchain or market. Even if you save some money on gas charges or costs, if the platform is not popular you will be denied the right audience.
#3 How to protect your NFTs?
The NFT space, being in its early stages, still suffers from some problems such as data lag, plagiarism, fraud, identity theft, etc. There are a few instances where the works of small artists have been copied for profit by malicious players. from them. Even though the verification process is underway, the danger remains. As of now, there is no set traditional takedown in case the listed NFT tokens are copied. Withdrawing your NFTs can be difficult or even impossible. In addition, chasing down a random copycat or initiating legal action against him can be extremely difficult and uneconomical. What is the relief in such cases?
Moish E. Peltz, Esq., president of the Intellectual Property Practice Group at Falcon Rappaport & Berkman PLLC, replies, “To the extent you can identify a violator, it may still be possible to apply traditional IP regulations to address the infringement of your work.” Once you find someone copying your work, immediately contact the platform on which the NFTs are being sold.
Other precautionary measures include investing in a hardware wallet or external hard drive which is more secure. Keep your wallet address and seed phrase secure and use a VPN whenever trading in cryptocurrencies.
#4 How to counter NFT volatility?
NFTs belong to the volatile asset class and are still in their infancy. There is no doubt that volatility is evident in the meteoric rise of NFTs in February when the market Exploded past $170 million. Within three months, we saw the NFT market drop to just $19.4 million by the end of May. As a result, investors who bought NFTs at higher prices were left with very little money. So creating NFTs is not just about digitizing your art or work. It should be a well thought out decision on the part of the creators. Here are a few things to keep in mind to keep your NFT safe from market volatility:
- consider it risk-to-reward ratio To analyze whether the returns you will get from casting NFTs are worth the time, effort and money you put in.
- build strong relationships With your audience or fans who are interested in buying your work to strengthen your personal economy.
- stand firm And don’t consider NFTs rewarding you with any windfall profits within a short span of time.
#5 How do NFTs affect trading?
NFTs have the potential to replace ownership rights as a future tool for selling digital merchandise or artwork. for example, top shots, NBA collectibles are important highlights of NBA games that are a rage among fans. No Surprise, a LeBron James Top Shot Was SoldOver $200,000! You can put practically anything in NFTs, including pictures, photos, collectibles, GIFs, songs, memories and even your own gaseous emissions. That NFT is explained!
The NFT market is a completely new space with amazing possibilities in the future. NFTs offer a new way to transfer ownership on-chain when tied to real assets, without considering off-chain migration of real assets to the new owner. As quoted by Cointelegraph, ‘NFTs provide convenience’token of ownership By “Securing them will ultimately revolutionize the compensation, storage, legality and protection of assets.”
It is worth noting that NFT minting is not an environmentally friendly process due to the large amount of computational power required to validate transactions. Therefore, creators must consider the carbon footprint, which will lead to the digitization of their work and make informed choices. Randomly mining NFTs with no target or no underlying value will only add to the environmental cost without any significant benefit.
We hope that reading the above points helped you to clarify your decision to some extent. Comment below what other things you think a creator should know before making their first NFT.
Further studies:
How to create an account on WazirX NFT Marketplace?
A Guide to NFTs
Top 10 NFT Artists You Should Follow
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