When Vignesh Sundaresan purchased Beeple’s landmark NFT “EVERYDAYS: THE FIRST 5000 DAYS” for roughly $69 million in March 2021, he believed this would push modern-day artists to combine creativity and blockchain technology. Turns out he was right. 1,5 years later there are multiple successful NFT artists and collections accumulating millions of dollars. In this article, we will talk about how NFT collections are created; described in a few easy steps.
How to Create an NFT Collection
An ‘NFT’ stands for a ‘non-fungible token’. For those unfamiliar with economic terms, the word ‘fungible’ could be explained as ‘something impossible to replace’. For example, if you replace 1 BTC with another 1 BTC, it will have the same value. In the real world, we also regularly exchange money. What we have as well is unique paintings and original songs with specific features that make the equal exchange impossible. The same rule applies to digital artwork. Once its value is rendered into a blockchain, it is tokenized and given a public certificate of authenticity or proof of ownership.
Actually, an NFT is a tokenized certificate that the account 0xabcd… owns NextBigThing.jpg file starting from Ethereum block 123456 and is able to control it.
NFTs are a byproduct of blockchain technology. It is a unique cryptographic token built on a blockchain. The absolute majority of NFTs are created on Ethereum.
NFTs get their value from scarcity, meaning there are no two identical NFTs. Buying, selling, and trading NFTs is possible on NFT marketplaces.
N.B. NFT marketplaces are an example of a DeFi application
Some popular NFT collections include:
- Bored Ape Yacht Club
- The Sandbox
Now let’s take a look at how users can start an NFT collection in a few easy steps.
1. Choose an NFT marketplace
A marketplace is used for auctioning off your NFT. There are multiple various platforms where it is possible to create and later sell NFTs. Some of the most popular ones are OpenSea, Rarible, Axie Marketplace. Most work with Ethereum. Alternative options are available as well. In this article, we will mostly use the OpenSea marketplace as an example to demonstrate each step of the process.
2. Set up a digital wallet
Wallets are utilized for storing cryptocurrencies as well as your minted and/or purchased NFTs. One thing that is important to mention here is that you need to select a wallet that’s fully compatible with the blockchain you’ll end up working on. At this stage, you’re also required to top up your wallet with enough crypto to cover blockchain costs - the so-called “gas fees”. The amount of gas can differ, depending on the conditions provided by the blockchain you’re using.
3. Connect your wallet to NFT marketplace
Next, you need to establish a connection between your digital wallet and the NFT marketplace. All you have to do is click the ‘Create’ button. From there, you will be redirected to the tab containing the list of compatible wallets. Select the wallet you wish to connect.
4. Create an NFT
Now that you have your wallet connected to the marketplace, it’s time to start creating. For most platforms, you either arrive at the page after completing all previous steps or you need to click the ‘Create’ button and start from there.
If you want to create an NFT collection, you need to refer to the ‘Create a collection’ button. Some marketplaces will place your NFTs in an unnamed folder if you do not make prior specifications. Last but definitely not least, upload the item you wish to sell as an NFT. Fill in its name, URL and description. This stage of the process is also known as NFT minting: the marketplace begins to “mint”, or render, an NFT into the blockchain.
5. List your NFTs for auction
In order to list NFTs, please select the blockchain you’re using to mint your NFT. You won’t be able to change it later. Go ahead and click ‘Create’.
In order to put your NFT up for sale, find and press the ‘Sell’ button. NFTs listed on Ethereum can be given a fixed price. The listing will only be accessible for the amount of time you choose to set. Confirm the operation by clicking ‘Complete listing’, and pay off the transaction fee via your wallet.
Congratulations! Your non-fungible item has officially been listed on OpenSea!
Future of NFTs
Similar to cryptocurrencies, NFTs could be regarded as an investment opportunity with potential growth in value. Possibilities regarding NFTs are extensive, and this openness may lead to even more collaborations with huge sectors. However, at this point, it is still too early to say if NFTs are here to stay or if they are not sustainable in the long run. For the general crypto enthusiast, starting an NFT collection comes with a myriad of fees. Nevertheless, there is no denial that NFTs have brought opportunities for creators to showcase and make a profit off of their art unlike nothing seen before.
N.B. Check out GetBlock’s guide on how to start trading NFTs