What is NFT? What Does It Do?
After the emergence and rise of cryptocurrencies, new crypto assets came to the fore. The most popular of these was NFT. You can continue reading our content to get to know NFT closely and to better understand this new world, which combines finance and art and has made a great impression all over the world.
What is NFT?
NFT, which stands for “Non-fungible Token” in English, can be translated into Turkish as “non-changeable / non-tradable token”. NFTs are crypto assets that represent real-world intellectual works such as works of art and music, games. Just like cryptocurrencies, NFTs are created on the blockchain. NFTs created on the Ethereum blockchain are also supported by other blockchains. NFTs digital artifacts on the blockchain; makes it authentic, non-replicable, verifiable and tradable. You can trade between cryptocurrencies, but you cannot exchange one NFT for another. For example, you can buy Bitcoin with the same value by paying 1 dollar, but you cannot get another NFT for one NFT. This is the reason why NFT is called an “immutable token”.
NFTs show who the creators of digital works are and who owns the property rights. It is usually bought and sold online with cryptocurrencies. In fact, the first NFTs were often video clips previously available online or digital artworks already circulating on social media. So, why did people spend millions of dollars on these works that they can easily take a screenshot of or download to their computers for free? The main reason for this is that the NFT receiver can own the original work and the rights to that work with built-in authentication.
The history of NFT actually dates back to 2014. The first known NFT video clip, Quantum, was created by Kevin McCoy and Anil Dash in May 2014. What brought NFT its popularity today was the fact that artist Mike Winkelmann’s “Everydays – The First 5000 Days”, known as Beeple, was sold for $69.3 million at an auction held by the famous auction house Christie’s in March 2021. Immediately after this news, the founder of Twitter, Jack Dorsey’s first tweet, sold his NFT for $ 2.9 million, heralded the beginning of the NFT era.
Important NFT Terms
It is very important to learn some basic terms in detail in order to better understand NFTs and start trading in the NFT market. Here are the key terms about the NFT world:
NFT Marketplace / Marketplaces
A subscription to an platform is required to create, buy and sell store collections. In most marketplaces, transactions are carried out for certain fees and commissions. These fees and commissions are different in each marketplace. While most marketplaces include all types of , there are also niche marketplaces that focus on specific products. You can start exploring the world of NFT by choosing the most suitable one among the marketplaces. The most popular marketplaces can be listed as follows:
- OpenSea: The most famous of the marketplaces is OpenSea. OpenSea, the world’s largest marketplace, is the market leader in terms of transaction volume and NFT diversity. Supporting payment with many different tokens, OpenSea is ideal for those who are new to the – world with its user-friendly interface.
- Rarible: Rarible, an Ethereum-based marketplace where all types of – are offered for sale, can only be traded with a platform-specific token, Rarible (RARI).
- Foundation: In Foundation, where NFT producers can become members by invitation only, transactions are made with MetaMask wallet and Ether. Foundation stands out with its user-friendly interface.
- Nifty Gateway: Preferred by popular digital artists like Beeple and musician Grimes, Nifty Gateway stands out from other marketplaces in being a curated platform. Collections are auctioned for a limited time only.
- Kalao: Kalao (KLO) can be defined as an -ecosystem that integrates virtual reality with the Avalanche blockchain. Offering the ability to create, buy and sell , Kalao promises speed and low transaction fees.
- Hicetnunc: Hicetnunc (HEN) is an experimental open source – platform that aims to decentralize the crypto art market.
Minting, in the simplest terms, refers to the process of converting a digital artifact to on the Ethereum blockchain. The artifact converted to is stored in the blockchain forever, cannot be changed or deleted. Minting converts a simple digital file in PNG, JPG, GIF, MP3 or MP4 format into a crypto asset that can be traded on marketplaces. What the NFT producer needs to do is to upload the relevant file to the NFT marketplace, add the features of the work, determine the royalty fee and list the NFT that it has put up for sale. If the producer wishes, he can follow thehe has created and can receive a commission in the amount he determined from the sale every time the work changes hands. These commissions are called ‘royalties’ in the world.
To be able to create or trade NFTs, it is necessary to have an NFT wallet. Although the NFT wallet is described as a cryptocurrency wallet that supports the blockchain protocol, the wallet does not actually store NFTs or cryptocurrencies. The wallet stores information about the location of your assets on the blockchain and provides access to and tracking of these assets via a private key. It is important to pay attention to the following criteria when choosing an NFT wallet:
- Compatibility with marketplace: Before choosing your wallet, you must decide which marketplace you will be trading in. Some marketplaces may only support a single wallet.
- Strong security infrastructure: In order to provide security in the digital environment, it is ideal that the wallet where your will be stored has extra mechanisms such as two-stage security.
- User-friendly interface: Even if you are far from the world at the beginning, you can use the wallets that offer ease of use and have clear directions while making your transactions without any problems.
- Compatibility across blockchains: Most marketplaces run on the Ethereum blockchain. It is important that your wallet also supports different blockchains, especially Ethereum.
- Multi-device support: With an wallet that you can use both on your mobile devices and on your computer, you can do your transactions the way you want.
How is NFT Made?
Technically, it is possible to convert any digital file to NFT and offer it for sale. Some of the digital assets that can be NFTs include:
- Musical works
- Video clips
- Video games
In order to create NFT with the minting method, it is necessary to have a crypto money wallet such as MetaMask, Coinbase Wallet, WalletConnect and some Ether to make payments. Although it varies from platform to platform, the step-by-step NFT construction is as follows:
- First, create your personal profile on an NFT platform such as OpenSea, Rarible, Mintable, Nifty Gateway and link your Ethereum wallet to this platform.
- Upload the artwork you created to the platform by clicking the ‘Create’ button.
- After entering the name and other features of your NFT in the relevant fields, set the price.
- At this stage, you must choose the blockchain that your NFT will be connected to. In addition, whether you will produce your NFT one piece or you can produce multiple, albeit a limited number.
- After checking all your information, you can create your NFT. It is important to make sure that the information is correct, as some information cannot be changed.
- You can put your NFT for sale by going to the page of the NFT you have created and clicking the ‘Sell/Sell’ button. At this stage, you can set a fixed price for your work or choose to put your NFT up for auction.
- Then you can make your NFT more visible by listing.
In addition to Ether, you can also create NFTs on the Avalanche platform:
- To create an NFT on the Avalanche platform, first create an Avalanche wallet at wallet.avax.network. To be able to trade, you must transfer AVAX to your Avalanche wallet.
- To start producing , you can specify the name of the collection, its symbol and how many tokens you will create by clicking the New Family button under the Studio menu.
- Then return to the Studio page and click the Mint Collectible button. In order to create your NFT, you must first upload the image you will use for NFT in the image adding field and enter the image link in the relevant field on the page.
- Enter detailed information about your in the description section, determine the number of tokens and click the Mint button to create your NFT.
How to Get NFT?
You may be interested in digital art or want to create an collection for investment purposes. So, don’t know where to start? You have to decide which cryptocurrency wallet and which NFT platform to use to buy . Then you can buy using the following steps, depending on the platform.
- Since crypto money is used in transactions, you must first have a crypto wallet and crypto money such as MetaMask, Coinbase Wallet, WalletConnect, Fortmatic.
- You may need to buy Ether as platforms usually trade with Ether (ETH). You can safely perform all your crypto money transactions on Felixo Exchange.
- Create a profile on a widely used platform such as OpenSea, Rarible, Mintable, Nifty Gateway and link your cryptocurrency wallet to your profile.
- You can examine the listed artists and in detail by clicking the ‘Explore’ button. You can buy the you like and add it to your collection. At this stage, you may need to pay a ‘gas fee’ to complete the transaction on the network. In high volume transactions, gas fee may increase in parallel.
How is NFT Used?
Blockchain technology and offer artists and creators a unique opportunity to monetize their digital works. Artists don’t have to go to galleries or auction houses to sell their work. Instead, the artist can sell directly to the consumer as an. Artists who set a certain commission when creating an NFT can earn royalties every time their works change hands, that is, ‘royalties’ as it is called in the NFT world.
It is also possible to use NFTs for investment purposes. Just like an art collector, you can create your own NFT collection, earn money by resale or auction the NFTs you buy.
If you are interested in as an artist, collector or investor, you can learn about the most prominent NFT artists and their successful projects, so you can keep the pulse of the agenda. Here are the most popular domestic and foreign NFT projects:
Axie Infinity: Axie Infinity released March 2018; It is an based trading and war game built on the Ethereum blockchain. Players can earn tokens by collecting, crafting, upgrading and trading characters known as “Axies” and fictionalized as NFTs. A special token named AXS is valid in the game.
CryptoPunks: Matt Hall and John Watkinson, the founders of New York-based software company Larva Labs, created a software program that can generate 10,000 different, weird-looking characters in 2017. These characters, called CryptoPunks, each of which are registered on the blockchain and find buyers at very high prices at auctions, have a large share in the popularity of the market today.
Bored Ape Yacht Club: Bored Ape Yacht Club (BAYC) is an NFT collection consisting of 10,000 different monkey avatars named Bored Ape. Released in April 2021, all NFTs in the collection were sold out within a week. In fact, an in the collection was sold at Sotheby’s for $3.4 million.
NBA Top Shot: NBA Top Shot is the official NFT marketplace of the NBA. In NBA Top Shot, there are NFTs called ‘moments’ created from visuals of iconic moments from NBA history.
Pak: Murat Pak, known as Pak, is an artist who has been working in the fields of design, coding and digital art for more than 20 years. The NFT project of Pak, which stepped into the NFT market in February 2020 and achieved great success in a short time, made a difference with the division of a single into many was put up for sale on Nifty Gateway in December 2021. At the end of the two-day auction, 28,983 collectors purchased a total of 312,686 Merge NFTs, with a total sales of $91.8 million. This earned Pak the title of “the most expensive artist”.
Tarık Tolunay: Tarık Tolunay, who defines himself as an ‘urban artist’, offered his work called Fractal Istanbul for sale as NFT in March 2021 and found a buyer for 36 thousand dollars. Thus, Tolunay realized one of the first large-scale NFT sales from Turkey.
Selçuk Erdem: Famous cartoonist Selçuk Erdem took his place in the world of NFT with his project called Fluffy Polar Bears. Fluffy Polar Bears, a collection of 9999 pieces of Erdem’s drawings of polar bears, is on sale on OpenSea.
Uğur Gürsoy: Fırat, the legendary character brought to life by the sleepless cartoonist Uğur Gürsoy in 2007, is one of the cartoon characters that took his place in the NFT world. There are 4999 NFTs in the Fırat collection, which is offered for sale through Kalao. Gürsoy had previously prepared an NFT collection called CryptoGrandpa.
Cem Yılmaz: Famous comedian Cem Yılmaz has also accomplished successful projects in the NFT market. Selling his drawings as NFT in October and November 2021, Yılmaz’s works quickly found buyers.
Refik Anadol: Media artist Refik Anadol, who gained a well-deserved reputation all over the world with his original and striking works he produced using artificial intelligence and data science, also made a great impression with his projects. Anadol’s named Machine Hallucinations – Nature Dreams : AI Data Sculpture 2021 1/1 published in OpenSea was sold for approximately $1.2 million.
Serkan Altunigne: Serkan Altunigne drew the Bobo type from his own dog, first in Penguin and then in Sleepless magazines since 2014. Since 2018, he started to publish regularly on his Instagram account. Bobo character gathered more than 120,000 fans. Random generate also transformed it into NFT project as avatar. Serkan Altunigne still continues to draw his Bobo adventures. On the other hand, it continues its negotiations and studies for an animated series.
You can follow the necessary steps and start creation or trading. With Felixo Exchange, you can safely and quickly get the crypto money you need to buy or sell .