Although NFTs (non-fungible tokens) have been popular in recent years, many people still have no idea how to convert ordinary files into NFTs. In this article, we will examine the process of creating an NFT, based on the example of one of the most popular blockchains — Ethereum.
1. Choosing a platform
To create an NFT, a user should first choose the appropriate blockchain platform. Ethereum is one of the most popular blockchain platforms for NFTs, but there are also alternatives such as Binance Smart Chain or Flow. It is important to consider the advantages and limitations of each platform before making a choice.
2. Setting up a wallet
To work with NFTs, it is necessary to set up a wallet on the chosen platform. A wallet is a digital address that allows a user to store, send, and receive crypto and tokens. Once you create a wallet, you must keep its private key safe, as it is the only way to access your funds.
3. Preparing a file
Before a file can be converted into an NFT, it needs to be prepared. An image, audio file, video, or any other digital content can be converted into an NFT. It must be noted that some platforms may have restrictions on file size and type.
4. Creating a token
After preparing the file, you can create an NFT on the chosen platform. To do this, you need to log into your wallet and select the option of creating an NFT. You will need to provide basic information about the token such as name, description, image, and other characteristics.
5. Indicating the terms of sale
When creating an NFT, you can also define the terms of sale. For example, you can set a fixed price at which other users can buy the token or auction it and let buyers bid on it.
6. Transferring the NFT
Once you have created an NFT, you can transfer it to another user. To do this, you need to know their wallet address. You can send the NFT directly to them or use the platform to perform the transaction.
7. Verification and validation
After an NFT has been sent, the recipient must check its authenticity and confirm the transaction. This is usually done by verifying the token’s data on the blockchain and comparing it with the information provided by the seller.
The process of converting files to NFTs can vary depending on the platform of choice, but the general stages are roughly the same. It is important to consider the requirements of the marketplace and keep the private keys safe to protect the assets.
How much does it cost to create an NFT?
An NFT creator generates a token using a dedicated service, such as the OpenSea or Rarible marketplace. A token contains the following data: information about the creator, a link to the digital file, terms of use, and royalties. To complete a transaction, a smart contract is run that specifies the algorithm for creating an NFT.
When changes are made to the blockchain, the so-called gas fee is incurred. The metadata is frozen, and the token is created only after the fee is paid. This process is known as token minting.
In general, the following is included in the cost of an NFT:
- Marketplace account fee.
- The cost of crypto used to pay fees.
- NFT minting fees (gas fees).
- Listing fees paid for the token’s creation. With lazy minting, users do not have to pay until the NFT is sold. This also reduces the load on the network.
- The platform’s minting fee, which can constitute up to 10% of the token value.
The cost varies from one marketplace to another. However, many users prefer to create NFTs for free, so that all costs are incurred only when the token is purchased by a customer. In this case, the costs are almost unnoticeable.
