How to release NFT for free? Walkthrough

Main

• Absolutely any object can be “transformed” into NFT: text, picture, audio recording, domain name and much more.
• Creating and releasing your NFT is no more difficult than posting a photo on Instagram. Any user can do this – even those who do not have extensive knowledge in the field of programming and blockchain technologies.
• There are various services that provide the ability to create, buy and sell NFTs. The most popular of these are marketplaces such as OpenSea, Rarible, SuperRare, BakerySwap and Treasureland.

What is the main difference between NFTs and cryptocurrencies?

All cryptocurrencies have a certain issue, the coins of which are the same and can be exchanged for each other. In turn, each NFT is unique and has no analogues. Although the release of non-fungible tokens, like cryptocurrencies, occurs through a smart contract. Any number of NFTs with common features can belong to one contract, so they can be combined into collections.

The main feature and, at the same time, the value of NFTs is in the digital items to which they relate. The token does not store the item itself – it points to a link to a media file hosted on the server. Due to the properties of the blockchain, this record cannot be faked or changed, except for legal cases – exchange or sale. Thus, NFTs act as evidence of ownership of a digital item (or its share).

The most popular blockchain for creating NFTs is Ethereum. The metadata of the token is managed by a smart contract created according to the ERC-721 or ERC-1155 standards. With the help of metadata, any NFT marketplace and other applications “find” the content of each token and correctly display its attributes.

In the case of the Hermitage NFT collection, created on the basis of paintings from the museum’s collection, all works exist in two copies: one, physical, is kept in the Hermitage, and the second, digital, is presented on the Binance NFT site. Their authenticity is certified by the director of the museum, and the date, time and place of signing are fixed in the metadata.

For which items can NFTs be issued?

You can issue an NFT for any objects, including in digital form: texts, social media posts, images, audio recordings, art objects, game items or characters, domain names, trademarks, and the like.

For example, in February 2022, the National Art Museum of Ukraine began trading paintings by various artists in the form of NFTs, and in New York, Okada & Company put up for sale one non-fungible token in June of the same year, giving ownership of an entire 7-story office building. building.

And in May 2022, Madonna released her NFTs. She created a collection of tokens together with artist Mike Winkelman, known under the pseudonym Beeple. Madonna’s NFTs are tied to music videos.

What is required to create an NFT?

Anyone can issue an NFT, it is simple and does not require programming skills and deep knowledge of cryptocurrencies and blockchain technologies.

The easiest way is to upload the file to one of the major sites, such as OpenSea or Rarible. After that, the platform itself will create a unique token and associate a media file with it.

To create an NFT you will need:

• the digital object itself, such as your drawing or a video taken with your phone;
• registration in the application where you want to issue NFT;
• a blockchain on which a non-fungible token will be created (the site will offer several networks to choose from);
• crypto wallet for authorization and financial transactions;
• cryptocurrency in the wallet to pay fees for the creation and placement of NFTs. The amount of commissions differs depending on the selected network.

On which blockchain is it better to issue an NFT?

Most non-fungible tokens are issued in Ethereum, however, network fees are at least several tens of dollars. There are a number of alternative blockchains that are often used for NFTs:

Each blockchain has its own standard for NFTs. The network in which the token is issued determines which applications and wallets will support operations with it. A non-fungible token issued on the Ethereum network can only be traded on platforms that support its token standards, such as Rarible. Another NFT marketplace can only support BNB Chain, like BakerySwap, and Ethereum NFTs cannot be placed on it.

Popular blockchains provide access to a large audience and a developed market, but they are often more expensive than transactions. In turn, networks with lower transfer fees may have a smaller ecosystem.

Which platform to create and sell NFTs to choose?

There are many NFT marketplaces. However, not every site allows you to issue a token to any user. For example, Nifty Gateway conducts a serious selection of participants before placing a digital object, so it is more often chosen by well-known artists.

Popular platforms, in particular OpenSea or Rarible, are completely open and provide access to the creation and placement of NFT tokens to any user.

OpenSea is the easiest place to find buyers. The main feature of the platform is the variety of categories for items that NFTs are tied to: art, sports, trading cards, as well as projects from famous artists. OpenSea even sells NFTs for audio files, domain names, and 3D objects.

How much does it cost to issue an NFT?

Each NFT marketplace has its own pricing policy and charges different fees for creating and staking tokens. Typically, they charge several types of fees, which include two types of payment: an upfront fee and a transaction fee.

An advance is a one-time payment to the platform that a user pays for opening an account or placing NFT for the first time.

The transaction fee can be fixed and paid only by the buyer, or it can be divided between the buyer and the seller. For example, the standard OpenSea commission is 2.5% of the NFT value and is charged to the buyer.

The author of the work can also enable the royalty option on large NFT platforms. This allows you to earn commission from each resale of the token. The royalties are fully automated due to smart contracts of the marketplace.

How to create a non-fungible token through OpenSea?

Consider the process of creating an NFT using the example of OpenSea.

1. Go to home page and press the button Create:

2. The platform will automatically offer to connect a suitable crypto wallet to the service. We will use MetaMask.

3. The wallet will ask you to sign the message needed to connect it to OpenSea. After confirmation, the platform will automatically create your profile.

4. A page for creating an NFT will appear in a new window. You need to upload an object to which the token will be attached: an image, audio, video, or 3D model.

Then you need to enter other data: the name of the token, a link to a personal website or blog (optional), a description of the object, then select the blockchain on which the token will be placed: Ethereum, Polygon, Klaytn Blockchain or Solana.

You can also use the Unlockable Content option – in this case, only token holders will be able to see the metadata of the token.

5. When all parameters are set, press the button Createand the NFT will automatically appear in your collection.

6. To go to the sales settings, click the button Sell at the top right of the screen.

A page will appear with settings for price parameters, placement period and other conditions. If desired, the NFT creator can hold an auction or set a fixed price. You can also set royalties and select the cryptocurrencies available for payment for the token. Once the settings are set, click on complete listing.

How to make money on NFTs?

The marketplace does not promise the user a 100% guarantee of the sale of the token, so he will have to independently advertise his NFT and look for buyers for it.

If it is important for you to gain skills in creating digital objects, and not in trading, then you can join any NFT project as an author.

Many companies associated with this market are looking for specialists to create content: artists, musicians, writers and representatives of other creative professions.

What problems can arise when creating an NFT?

It is impossible to store media files in the blockchain, because otherwise its size would reach incredible sizes. For example, a copy of Ethereum already weighs over 1 TB. Therefore, off-chain infrastructure is used to store files to which NFTs are attached.

Often, the NFT metadata points to a link in the cloud-based HTTP server where the file is stored. Thus, a contradiction appears: the token itself is in the blockchain, and the item it points to is on a centralized server. Therefore, there is a chance (albeit low) that the file can be replaced with another one or completely deleted.

The problem is partially solved by the communication protocol InterPlanetary File System (IPFS). This is a system for decentralized file storage, so files hosted in IFPS are less vulnerable to outside interference. Many hosts, not just the server operator, guarantee that the data will not be changed. That’s exactly what Grimes did when she sold her collection of unreleased tracks in NFT form.