Non-Fungible Tokens (NFTs) are the cryptographic assets that enable the purchase, sale, and ownership of unique digital things.
According to many, non-fiat currencies have become the most disruptive trend since Bitcoin, and thus, the term has become a fascinating new internet buzzword.
This article will explore the world of non-fungible tokens (NFTs) to help you comprehend various cryptographic tokens and introduce you to NFTs with essential topics you should be familiar with and lay the groundwork.
In this article we will present the notion of NFT and familiarize you with the NFT universe.
We will learn what NFTs are and how they function and examine some of the most prominent NFT initiatives.
In addition, we will investigate alternative techniques for making NFTs and initiate the process of creating our own NFTs.
We will also enable you to design your own NFTs and get you up and running with NFT. Two techniques will be utilized: No-code and Code.
We will examine various NFT marketplaces and discover how to buy and sell NFTs.
Advantages of NFTs:
- The primary advantage of non-fungible tokens is the evidence of ownership.
- The benefits of non-fungible tokens rely heavily on the tokens' exclusivity. NFTs are formed on the Blockchain, suggesting that they are associated with unique records.
- Alternatively, the immutability of the Blockchain on which NFTs have kept guarantees their authenticity.
- NFTs have found widespread use in the realm of digital content.
Table of Contents
Introduction to Blockchain, Cryptocurrencies, and Ethereum
NFT relies on Blockchain, Cryptocurrencies, and Ethereum as its foundational technology.
Blockchain
In 2008, a mysterious individual using the alias Satoshi Nakamoto created the world's first cryptocurrency, Bitcoin. To this day, nobody knows who Satoshi is, but he did leave behind Bitcoin and the underlying technology, Blockchain.
Therefore, Bitcoin is credited with bringing Blockchain to the world's attention.
Blockchain is designed to enable the secure transmission of digital assets (such as money) without the need for intermediaries or third parties such as banks. Skipping mediators makes transfers faster and cheaper.
Blockchain technology ensures a secure transfer and may also be used to verify which transfers have occurred in the future. In other words, Blockchain is a trustworthy record of events.
Consider a straightforward scenario to comprehend how Blockchain operates. Assume that banks cannot trace your money and transactions without computers. How would the bank then operate?
The banks record all transactions in a ledger book, with one page dedicated to each account holder. The teller would record a plus sign on your page when you deposited the bank's ledger book.
But these days, who doesn't have trust issues? What if the teller deducts $10 from the ledger as soon as you exit the bank? Consequently, the next time you visit, your balance will be $90.
Consequently, how would you detect such misconduct? To counteract this, the bank would provide each account holder with a passbook, and when a transaction occurs, the teller will record it both on the bank's ledger and in your passbook.
Therefore, if you return the following time and discover only $90, you could fight with the teller by displaying your passbook. Problem solved!
However, the bank has recently resolved the issue. What if the customer/account holder manipulates the passbook entries themselves?
Here, the bank can devise an additional remedy. The bank would require all customers to complete their transactions on the same day and record them in their passbooks so that everyone will always have a copy of the bank ledger book.
Therefore, if fraud happens from either side, the bank can confirm the transaction by examining the duplicates of each customer's passbook. This is how the system becomes secure and decentralized.
If we replace the bank ledger book in the preceding scenario with remote and anonymous computer nodes, the collection of transactions gets referred to as blocks, and a series of blocks are linked as chains.
The term for this is Blockchain.
It is a permanent database record of every transaction that has ever happened using a specific cryptocurrency/platform. The entire database is stored on tens of thousands of nodes.
Robust computer code assures anyone cannot alter these records after the fact.
Once the information has been put into the Blockchain, no one can remove it. This is because each node has a duplicate updated transaction entry. If you wish to modify an entry, you must modify it on each node. Extremely tedious work!
Cryptocurrencies - The Currency of the Future
The human race has traveled from barter systems to gold and silver coins to fiat currency to digital or cryptocurrency.
Today, cryptocurrency is one of the universal terms. The news, blogs, and even major financial institutions are fixated on it, and everyone must now concede: "The world is changing before our eyes."
Now that we have examined the notion of Blockchain, it is time to investigate the concept of cryptocurrencies.
Let's break down the phrase cryptocurrency.
Crypto + Currency = Cryptocurrency
In this context, Crypto refers to something digitally encrypted, whereas Currency refers to any money or other valuable object.
Before discussing cryptography, let's discuss a currency.
There is much more to Currency than banknotes and coins. A currency is a storage unit, a unit of account, and a medium of trade. Simply put, it is a generally acknowledged method of purchasing or selling any product or service.
Therefore, a currency is the depiction of worth or value that we own, using a medium or instrument provided by a central authority or a third party with whom we have established a relationship of trust.
Cryptocurrency is a digital system that enables the direct exchange of wealth without intermediaries. No Dollars, Euros, Pesos, or Yen — Cryptocurrencies are global. They are accessible to everyone, everywhere in the world.
A cryptocurrency is a digital currency that people can exchange for goods and services in the real world.
It employs public-key cryptography to safeguard transactions and authenticate the transfer of assets. Numerous cryptocurrencies have decentralized control, allowing them to exist independently of intermediaries such as banks and government agencies.
Consider cryptocurrency as a more recent form of currency. They store and transfer value like money but more securely, swiftly, and efficiently.
The following are characteristics of a cryptocurrency.
- Digital: Unlike traditional forms of currency, cryptocurrencies do not exist in physical form. No dollar notes, metal coins, or plastic cards — it's 100% digital.
- Decentralized: Cryptocurrencies are decentralized because they lack a central authority, computer, or server. They are scattered among thousands of machines in a network. Without a central server, networks are referred to as decentralized networks.
- Peer-to-Peer: Cryptocurrencies are transferred online from one person to another. Users do not interact via banks or any other third party. They interact directly with each other.
- Encrypted: Each user has unique access codes that prevent other users from accessing their information. This is known as cryptography, from which the term crypto originates.
Blockchain technology distinguishes cryptocurrencies from fiat currencies and previous attempts at digital cash. All the characteristics of cryptocurrencies that we have comprehended are powered by Blockchain alone.
Ethereum: Programmable Blockchain
Ethereum is commonly considered the second most popular cryptocurrency after Bitcoin.
However, Ethereum is much more than just a cryptocurrency.
Ethereum is an open-source, blockchain-based, decentralized software platform introduced in 2015 and is utilized for its cryptocurrency, Ether (ETC).
Ethereum is designed to be much more than a medium of trade or a store of wealth, in contrast to Bitcoin and most other virtual currencies.
It enables the development and execution of smart contracts and distributed apps (dApps) without any downtime, fraud, control, or intervention from a third party. It is a Blockchain Platform in its entirety!
Ethereum is a platform and a programming technology built using the Solidity programming language and running on a blockchain, enabling developers to create and publish distributed applications.
This technology permits you to send cryptocurrency to anyone for a nominal cost. It is the programmable Blockchain of the globe.
Ethereum builds upon Bitcoin's innovation but with significant distinctions. Both let you use digital currency independent of payment providers and banks. But because Ethereum is programmable, one may use it for various digital assets, including Bitcoin.
Smart Contract
Smart contracts are the foundation for everything when constructing a blockchain-based application (a dApp, cryptocurrency, or even an NFT) using Ethereum.
Since Blockchain became a phenomenon in 2017, smart contracts have garnered the interest of investors and regular consumers.
How does Blockchain work?
Blockchain is a system of decentralized nodes where transaction data is disseminated and stored using the network resources of each connected device. All transactions are accomplished using computations.
A user initiates a transaction request. The block containing the transaction's data is created automatically. This block is transmitted to each network node, and each node must validate the request.
Participants in a transfer can always inspect these records to assess the legitimacy of a transaction because Blockchain offers such transparent access to the transaction history.
Blockchain is dependent on the concept of transaction verification, which leads to the concept of smart contracts. A smart contract is a contract whose terms and conditions are determined by computer code algorithms.
Smart contracts take advantage of the fact that Blockchain transactions are based on computing by designing systems that either promote or prevent the transfers.
The code is dispersed among all network participants, and no centralized authority holds all the papers and controls the process. There is no human oversight; the transaction is managed by code alone.
Transactions are invariably recorded in each block, making it simple to follow every transfer. Both parties can view the transaction's status at any moment and receive comprehensive details after completion.
Ethereum Smart Contracts
Ethereum grants network participants access to the Ethereum Virtual Machine (EVM), a decentralized blockchain computer on which developers can create smart contracts and integrate them into applications.
Because it is decentralized, execution does not take place on a single device but utilizes all connected participants' resources. In this manner, no specific computer can be targeted.
Coins & Tokens - The Digital Currency
Bitcoin introduced us to the realm of cryptocurrency.
Altcoins are several forms of digital currencies launched as alternatives to Bitcoin. At the time, it was the sole peer-to-peer currency transaction system. However, the development of cryptocurrencies did not end there.
Developers developed many new and distinct types of cryptocurrencies over time to support a variety of uses.
Ethereum and Tokens
The inception and expansion of Ethereum gave rise to the term 'token,' which has become a generic term for all cryptocurrencies built on the Ethereum network.
Thus, cryptocurrencies are "coins" and "tokens."
These names may appear equivalent to novices, yet there is a significant distinction between them, which rests in their respective usage.
At the most fundamental level, coins are Crypto, backed by abundant collateral, and fulfill money purposes. In contrast, tokens harness crypto technology to service various business user requirements.
These coins and tokens are frequently mistaken for one another.
Therefore, to comprehend the distinction between a crypto coin and a crypto token, let's comprehend them.
A coin cryptocurrency works on its Blockchain, whereas a token resides on the current blockchain infrastructure.
Coins have independent transaction ledgers, whereas tokens rely on the underlying network's technology to validate and secure transactions and ownership.
Examples of crypto coins include Bitcoin, Dogecoin, Litecoin, and others. In contrast, examples of crypto tokens include Tron, Ox, Byton, etc., which exist on top of other blockchain infrastructures such as Ethereum.
To illustrate this, let's examine a real-world case. Imagine you frequently visit Domino's and earn Domino's Stars (loyalty points) whenever you purchase a pizza.
Once you have earned enough stars/points, you can exchange them for a free pizza. These stars represent Tokens, whereas the money spent on Domino's items represents Coins.
You can purchase Domino's Stars with cash, but you cannot redeem them for cash. In keeping with the same idea, you can use a cryptocurrency to purchase a company token, but not vice versa.
The coin versus token debate boils down to these three points -
- While coins necessitate their Blockchain, tokens can operate on the existing network.
- Tokens are restricted to a particular project, whereas one can spend cash everywhere.
- Tokens cannot be used to purchase coins. However, one can use coins to purchase tokens.
Most tokens are used to execute smart contracts, raise funds for crowd sales, or as rewards, whereas coins are primarily used as a vehicle for digital payments.
Broad Categories of Tokens
A token is merely a synonym for a cryptocurrency or a crypto asset from a technical standpoint. Nevertheless, it has taken on several context-specific meanings.
We can distinguish at least five sorts of cryptocurrency tokens based on their formulation, code design, applications, and other characteristics. This classification scheme assists in navigating the landscape depending on the many categories.
The following are some broad classifications for these tokens.
- Platform tokens
- Security tokens
- Transactional tokens
- Utility tokens
- Non-Fungible tokens
Understand that, based on usage, each token type delivers various features. Tokens can fit into multiple categories. Therefore these groups are not mutually exclusive.
Platform Tokens
Platform tokens employ blockchain infrastructures to provide various decentralized applications (dApps).
These tokens get greater security and the capacity to facilitate transactional activity due to the blockchains they are built on. They serve gaming and digital collectibles platforms and worldwide advertising and marketplace businesses.
Among the most prominent examples of this type of token is the Ether (ETH) token, developed on the Ethereum blockchain network.
Security Tokens
Security tokens are a new asset class that aspires to be the cryptocurrency counterpart of traditional securities such as stocks and bonds. It arose in response to escalating regulatory concerns and derived value from an external asset that may be exchanged as security by financial regulation.
Security tokens act as direct, on-chain representations of real-world securities or tokens that perform similarly for blockchain initiatives and digital assets.
Their primary application is to sell shares in a firm similar to the shares or fractional shares sold on traditional markets or in other industries, such as real estate, without the requirement for a broker.
Transactional Tokens
As implied by their name, transactional tokens are utilized for transactions. They serve as units of account and are used to purchase goods and services.
Bitcoin, a digital currency that we can use to buy and sell goods with online and offline shops that accept it, is a prime example. These tokens can be exchanged for other cryptocurrencies and fiat currencies and sent to users via a digital wallet.
However, not every transactional token is a currency.
Global supply chains and other companies utilize transactional tokens to apply the immutability of the Blockchain and the adaptability of smart contracts to their operations.
Utility Tokens
Utility tokens are frequently compared to coupons or vouchers, but they are, in reality, digital units expressing a value on the Blockchain. These are intended for a specific function, typically within the program or platform they are developed.
These tokens are integrated into an existing protocol on the Blockchain and are used to get access to the protocol's services. They are not designed for direct investment but can be used to pay for services inside their respective ecosystems.
Consequently, the relationship between a platform and a utility token is synergistic. The platform offers security for the utility token and provides the network activity required to bolster the platform's economy.
Non-Fungible Tokens (NFTs)
NFTs, also known as non-fungible tokens, are cryptocurrency tokens constructed on top of an existing blockchain platform, typically Ethereum.
Being tech-savvy and digitally friendly, we frequently share memes, infographics, jokes, artwork, and other digital assets with our friends and family for fun, knowledge, or to raise awareness of an event.
Currently, NFTs are a hot topic in the cryptocurrency community.
These digital assets, which vary from art and music to in-game assets and luxury apparel, are selling for millions of dollars, like a 201-carat gemstone watch.
Since 2020, numerous brands and personalities, including Adidas, Nike, Disney, and McDonald's, have joined NFTs.
The above two photographs were sold for millions using a non-fungible token (NFT).
- The first image is the Nyan Cat meme, which was auctioned for $600,000 in February 2021.
- While the second is the first tweet by former Twitter CEO Jack Dorsey, which sold for $2.5 million at auction.
These digital assets do not exist in the physical world, but their value has increased substantially due to NFTs.
As seen in the preceding sections, a token is a crypto asset that resides on top of existing blockchain technology. Non-Fungible Tokens are one of the categories that can be used to classify these tokens.
Therefore, NFTs are some form of non-fungible crypto tokens.
To understand this, let's examine the idea of Fungibility.
Fungibility
Fungibility is an economic concept that refers to the interchangeability of one asset with other assets of the same sort. It denotes something that may be replaced or exchanged.
Furthermore, fungible assets simplify the exchange and trading operations, as fungibility indicates that all assets are of equivalent worth. Consider, for instance, a 10-gram gold coin. It can be exchanged for another gold coin of the same weight with no loss or gain in value.
NON-FUNGIBLE Tokens
Non-fungible cryptographic assets cannot be easily exchanged or converted.
Non-fungibility refers to something that is unreplaceable and unique.
Consider the magnificent and renowned picture Mona Lisa. There are many imitations of the Mona Lisa on the market, but there is only one unique original, which any other forgery cannot replace.
Technically speaking, non-fungible tokens are the cryptographic assets that enable purchasing, selling, and asserting ownership over unique digital goods.
A unique and non-exchangeable unit of data is recorded on a digital ledger utilizing blockchain technology to create evidence of ownership. They have specific identifying numbers and metadata that allow them to be distinguished from one another.
Typically, these tokens are constructed on top of the Ethereum blockchain platform, but it also enables the usage of other blockchains for the same purpose.
Today, NFTs are collectible digital assets that hold value (data of ownership and related information), similar to the worth of natural art.
Any digital file that can be easily duplicated can be saved as an NFT to identify the original copy. These digital files/assets can represent virtually anything, including art, graphics, music, films, and photographs.
Note that NFT cannot ever be modified, updated, or stolen. Due to the cryptographic concepts that make the Blockchain unique and secure!
In 2017, Crypto Punks, the first non-fungible token, was issued on the Ethereum Blockchain by American Studio Larva Lab. John Watkinson and Matt Hall were the only two members of the team back then.
In the same year, another project, Crypto Kitties (a blockchain game built on Ethereum that allowed users to buy, collect, breed, and trade virtual cats), was published and became viral immediately after its debut.
It is expected to produce an investment of $12.5 million.
And the rest, as they say, is history! Technology has just advanced throughout the years and is now at its pinnacle!
Characteristics of NFTs
NFTs include all the conventional advantages of Blockchain, such as decentralization, disintermediation, registry immutability, traceability, and verifiability of its contents, movements, and transfers.
However, the following features of NFTs are noteworthy:
- Non-Interoperable: NFTs adhere to the ERC-72 standard (a standard for NFTs that makes the tokens unique and can have a different value than another token). As a result, they are deemed non-interoperable, meaning the information held in them cannot be transmitted or utilized in any way.
- The value of a non-fungible token is determined by its scarcity. The fewer NFTs there are, the more expensive they will be. This not only makes them uncommon but also increases their worth.
- Indestructible: NFTs are kept and maintained via Blockchain, increasing their security level. This indicates that they cannot be destroyed or eliminated at any cost.
- Even though NFTs are not set in stone, these objects are not divisible. In contrast to other cryptocurrencies, you cannot send NFT cryptocoins to anyone because they are non-fungible and lack a specified value.
- NFTs use Blockchain to distinguish themselves from the crowd and determine the authenticity of a work of art since they resemble real works of art. It also allows you to distinguish between original and duplicated things. It is likely the most valuable characteristic of NFTs to date.
How do NFTs work?
The blockchain serves as the decentralized ledger that records the ownership and transaction history of each NFT, which includes a code, a unique identifier, and other metadata that no other token can replicate.
Therefore, NFTs act like digital authentication certificates. They are used to prove ownership of digital material or to mark anything as one's own in the digital realm.
Consider the following scenario.
Original works of art, such as paintings, are always more valuable than reproductions. If you choose to purchase an Andy Warhol, you will only be willing to pay a premium if its authenticity can be proven.
Typically, authenticity would be accomplished with an "authenticity certificate".
Utilize NFT technology to do the same task with a digital file, such as digital artwork, and distinguish the original from the clone.
Contract-enabled blockchains can create NFTs with the right tools and assistance. Thus, you may verify the authenticity of digital art and offer a premium to the digital artist who created the NFT.
NFT v/s Cryptocurrency
Although both NFTs and cryptocurrencies are built on blockchain technology, the fundamental differences between the two might help us distinguish between the two.
The critical distinction is that cryptocurrencies are fungible. For instance, a Bitcoin can be exchanged for another Bitcoin. Its Fungibility makes it a reliable method for completing Blockchain transactions.
However, this is not possible for NFTs. A non-fungible token is associated with a specific digital asset and cannot be exchanged.
Top NFT Projects
Due to the excessive amounts spent on digital assets, NFT projects have enticed more individuals to invest in the metaverse. You've certainly seen numerous celebs flaunt their NFTs on social media after purchasing them.
Each day, multiple NFT projects are launching at present. In this section, we will examine some of the most impressive and prominent NFT projects -
Beeple NFTs
Mike Winkelmann, often known as Beeple, a digital artist, has shocked the art world by selling an NFT for $69M worth of ETH. Christie's auction house managed the sale.
Previously, Beeple had never sold a print for more than $100, but he became one of the most highly regarded living painters overnight. This sale places him among the world's three most valuable living artists.
Due to his series, in which he makes and publishes artwork daily, Beeple has amassed substantial popularity. He has not missed a single day in the past fourteen years.
The sold piece was titled Everydays: The First 5000 Days and included a collage of Winkelmann's work from the beginning of the project, when he posted relatively primitive sketches, until the present (a collage of his artworks from the first 5000 days of the project).
The sale of Beeple is a significant turning point in the next chapter of digital art.
NBA Top Shot
With officially licensed NBA and WNBA NFTs, NBA Top Shot brings basketball fans worldwide closer than ever to their favorite players and teams.
It is a Dapper Labs project where customers may purchase packets of unique digital artwork depicting iconic NBA moments as NFTs.
It's your chance to own video highlights of your favorite players, like Kevin Durant's jumper, Ja Morant's incredible athleticism, and Steph Curry's three-pointer.
Each week, you can unlock new digital packs of NFT Moments, which are Top Shot's digital highlights from the most spectacular plays of the season.
NBA Top Shot was one of, if not the most successful, NFT projects as of March 2021.
- Digital pets are more difficult to market than collectibles for a game with a large fan base.
- User experience may be the second factor. NBA Top Shot does not feel like a blockchain product, which lowers the entry hurdle for most users.
Many consumers may be unaware they are using a blockchain-based product, which may be regarded as a success in and of itself.
Cryptopunks
On Ethereum, CryptoPunks was one of the first non-fungible token ventures.
Launched in 2017 by Larva Labs, they are a collection of 10,000 distinct collectible tokens that were algorithmically generated. This collection was created in collaboration with two Canadian software engineers.
This NFT project's characters resemble pixelated replicas of punks that may be bought, sold, or bid on.
Before the NFT bubble of 2021, they had been available for years and generated only mild interest.
Axie Infinity
Axie Infinity is a play-to-earn blockchain game in which participants breed Axies, virtual pets. The metaverse-based game was released in May 2018 and has earned great popularity over the past year.
Players own and control these pets or trade them with other players. They can fight enemies together in Adventure mode or engage in player-versus-player (PvP) combat.
As for the technological underpinnings, Axies adhere to the Ethereum ERC-721 standard. The game also offers non-fungible goods and terrain.
In addition, the website boasts that the most expensive Axie ever sold was for USD 820,000 and that the game has 2,800,000 daily active players.
Decentraland
Decentraland is a virtual reality game based on the blockchain.
On top of the Ethereum blockchain, Decentraland enables users to visit a virtual reality world where they may purchase land, construct homes, and create avatars. Additionally, owners can trade the digital collectibles they create.
Each piece of LAND is unique, and its owners can decide what they want to place on it. This might be as simple as a scene or as complex as an interactive game. Moreover, purchasing land in this area might be expensive.
Buying and Selling NFTs
Any digital item can essentially be purchased as an NFT.
However, there are a few factors to consider while purchasing one, mainly if you are a beginner.
Let's determine which marketplace to purchase from, which form of the digital wallet is necessary to hold it, and which cryptocurrency you need to execute the transaction.
Trading NFTs
We can purchase and sell NFTs. However, we cannot trade an NFT with the other party.
Recognize that NFTs utilize blockchain. These blockchains serve as the decentralized ledger that records the ownership and transaction history of each NFT, which includes a code, a unique identifier, and additional metadata that no other token can replicate.
Consequently, unlike cryptocurrency or fiat money, each NFT is unique and cannot be swapped for its identical counterpart.
NFT Marketplaces
NFT marketplaces are sites on which NFTs can be kept, exhibited, traded (bought/sold), and minted (created) in certain instances. These marketplaces are comparable to Amazon or eBay for NFTs.
Simply put, these exchanges provide a public Blockchain platform for NFTs.
There are numerous NFT marketplaces available today!
Choosing the appropriate NFT marketplace could affect whether or not your NFT artwork sells.
You must also evaluate which of the several NFT marketplaces best fits the type of NFT you are creating and which blockchain it employs when determining where to sell your artwork.
Some NFT marketplaces opt for reduced gas fees (which you must pay to establish your NFT) and better carbon footprint provided by newer blockchains.
Opensea
OpenSea is one of the oldest and so-called market leaders in selling NFTs.
OpenSea's platform offers a variety of digital goods, including art, music, photography, and sports collectibles. Consider it the Amazon of NFTs, with everything under one roof!
It also provides artists and makers with a straightforward method to develop their own NFT (known as minting).
In addition, OpenSea is now a gas-free NFT marketplace thanks to cross-blockchain interoperability. The marketplace supports around 150 distinct payment tokens.
OpenSea is an excellent starting point for an introduction to the NFT realm.
Foundation
Foundation was created as a straightforward method for bidding on digital art.
The Foundation community invites artists to the platform, and purchasers need only an Ethereum-funded crypto wallet to begin making purchases. To join Foundation, you must receive an invitation from a current artist, and each artist is limited to one invitation.
Foundation probably isn't the most incredible place to start if you're looking for a simple way to create your own NFTs. The marketplace offers a great deal of artwork that users can view in a basic format.
Since its introduction in early 2021, this marketplace has sold more than $ 100 million of NFTs.
Mintable
Mark Cuban's Mintable intends to be an open marketplace comparable to OpenSea. If OpenSea is the Amazon of NFTs, Mintable would be Etsy.
To participate in the buying and selling of NFTs on Mintable, you will need Ethereum, like with most other marketplaces. The platform also facilitates the minting of NFTs for all creators (photographers, musicians, etc.) who wish to market their work as digital assets.
Mintable University is a free resource on the marketplace that offers helpful video lessons to improve NFTs, making life even more straightforward.
Nifty Gateway
Nifty Gateway is maybe the NFT marketplace with the most eye-catching, high-value NFT transactions. It is where two of the most expensive NFTs to date were sold: Beeple's CROSSROAD and Pak's The Merge, which sold in December 2021 for USD 91.8 million.
It is an art curation platform powered by the crypto exchange Gemini, which the Winklevoss twins control, and the NFTs, often known as Nifties, are based on Ethereum.
Although this may not work for NFT collectors who need greater freedom with their art investments, NFTs are not saved in your wallet but rather by Nifty Gateway and Gemini on your behalf.
Metamask Account Setup
To access and utilize the NFT markets, you will require the following:
- A cryptocurrency wallet is an application (virtual wallet) that enables users to store, retrieve, and transfer their digital assets. You must select a wallet compatible with the blockchain network that supports the NFTs you intend to purchase or sell.
- Wallet Funds: Before purchasing, listing, or minting an NFT, you must fund your wallet beforehand. Again, it would help if you determined which cryptocurrencies are supported by the intended marketplace. Typically, it would be Ethereum.
- Account: If you desire to purchase, list, or mint NFTs on a particular marketplace, you must create an account.
Ethereum is the most popular platform for purchasing, selling, and producing one-of-a-kind digital things.
Let's begin with a cryptocurrency wallet. Metamask can serve as our cryptocurrency wallet.
Metamask is a web browser extension and mobile application for managing Ethereum private keys. Thus, it functions as a wallet for Ether and other currencies and enables interaction with decentralized applications (dApps).
It is a wallet for interacting with Ethereum that may be accessible via an app or a browser extension.
It is a bridge that enables you to visit the decentralized web of the future in your browser without running a full Ethereum node. This wallet will store our Ether tokens and conduct transactions on NFT marketplaces.
This wallet is used similarly to a bank account in modern times. However, Metamask has use beyond cryptocurrency storage.
Given that it connects to decentralized applications, this browser-based wallet has an increasing number of applications. Decentralized applications allow users to purchase virtual lands, breed CryptoKitties, and play games with their bitcoin.
Since everything is recorded on the blockchain, there is no central authority. This decentralization permits the information to be transparent, enhancing the integrity of all transactions.
Metamask Setup
To configure your Metamask wallet, you must first install it. Visit the Metamask website and select "Download". You can install MetaMask on any web browser or mobile application.
We recommend using the Metamask extension for Google Chrome to establish a new Metamask wallet. Metamask supports native iOS and Android apps and Chrome, Firefox, Brave, and Edge browser extensions.
It is as quick and straightforward as installing any browser plugin!
To launch MetaMask, click the MetaMask extension icon in the upper right corner. This will result in a screen similar to the one displayed above. After installing the extension successfully, navigate to your Google homepage.
Select "Get Started" Once you accomplish this, the following will occur:
Either an existing wallet can be imported using the seed phrase, or you can create a new wallet.
Assuming you don't have an existing wallet, let's make a new one. To do so, click 'Create a Wallet' and then, in the following window, click 'I agree' if you'd want to help enhance Metamask or 'No Thanks' to continue.
Create a secure password for your wallet in the following step. You will use this password to access your Metamask account via the browser extension or the mobile application.
After setting a password, the following step is to enter your seed phrase or 'secret backup phrase'.
As your secret phrase, you will receive a string of words generated at random.
Metamask requests that you keep your seed phrase in a secure location. We advise you to write it down. It is the only means to retrieve your funds if your device or browser crashes.
Note: If you lose your seed phrase, MetaMask cannot restore your wallet, and you will permanently lose your cash.
Reveal your secret phrase and press the "Next" button. You will then be required to re-enter this word or phrase into the browser or application to verify it. Click "Confirm" to continue.
Your MetaMask wallet has been successfully configured.
You can now access your wallet by clicking the MetaMask icon located in the upper-right corner of your preferred web browser. It should be like the image below.
After setting up Metamask, the final prerequisite before entering an NFT marketplace is to add funds to the Metamask wallet.
To accomplish this, visit any cryptocurrency exchange you may utilize and purchase some Ethereum. Using the public wallet address, you can transfer Ethereum to your Metamask wallet once you have it.
You should be able to complete the procedure quickly, as it is comparable to any other transaction. Even the Metamask user interface is highly intuitive.
No-Code NFT Creation - OpenSea Account Setup
NFT marketplaces are sites on which NFTs can be kept, exhibited, traded (bought/sold), and minted (created) in certain instances. There are other online marketplaces, but in this article, we will use OpenSea.
As we have seen, OpenSea is a decentralized marketplace for buying, trading, and manufacturing non-fungible tokens (NFTs). OpenSea positions itself as the most extensive digital commodities marketplace.
OpenSea's success can also be attributed to its open-world architecture, which allows anyone to produce NFTs for free and trade them on a verifiable blockchain-powered infrastructure.
This open-world architecture has attracted many NFT producers since there are few or no limitations to inhibit the creative and transactional processes involved.
Features
Let's examine several critical characteristics of OpenSea before utilizing this marketplace.
OpenSea's ability to operate a decentralized marketplace where all transactions and activity are recorded in real-time on the blockchain is one of its primary strengths.
It has recently expanded its operations to encompass three blockchain infrastructures, including Ethereum, Polygon, and Klatyn. On OpenSea, it is possible to acquire NFTs based on any of these chains.
Moreover, because of Polygon integrations, it provides a gas-free or fee-free method for manufacturing NFTs.
General Trivia: For those new to Polygon, it is a blockchain that reduces the cost of interacting with Ethereum-based applications and transacting with Ethereum tokens.
Account Setup
A crypto wallet, funds in the wallet, and a user account are required to access and utilize a marketplace. Now that we have completed the first two prerequisites, let's create an OpenSea account.
Creating an OpenSea account is as easy as linking your Metamask wallet to the OpenSea marketplace. Let's see how to achieve that -
Navigate to the official OpenSea website
To connect your freshly generated wallet, click the 'wallet' icon in the upper-right corner of the OpenSea homepage.
There will be a prompt asking you to select your preferred wallet. Choose your wallet, MetaMask, and complete the connecting process from your wallet.
This will urge you to digitally sign for authorization to indicate that you wish to link your wallet to the OpenSea marketplace.
After configuring your wallet, you will be sent to your OpenSea profile page. Since this account is in its default condition, you will need to customize it.
OpenSea will invite you to sign an agreement before proceeding. Once you reach this level, you can customize your account by entering a nickname, bio, and profile image.
After creating your OpenSea account, you will sign in using your digital wallet and a digital signature.
Creating an NFT
OpenSea is an excellent starting point for an introduction to the NFT realm. It provides an easy-to-use procedure for artists and makers to construct their own NFT. This creation of an NFT is referred to as minting.
However, depending on the blockchain you wish to manufacture NFTs, you may need sufficient coins (funds) in your wallet to cover the necessary transaction fees.
If this is covered, you may immediately begin minting NFTs.
Digital artwork, 3D models, video art, and music can all be converted into NFTs. Two possible methods for minting an NFT are
- Directly minting an NFT, or
- Creating an NFT collection and adding the newly minted NFT to that collection.
Let's start with the second technique since, once you mint NFT using this method, minting NFT directly will be a breeze! Collections in OpenSea are analogous to the categories under which you would like to establish an NFT.
First, you must have a digital file of your artwork. You must prepare your digital file before creating an NFT. If you wish to build an NFT for a physical object, you must first scan it to digitize it.
Creating a Collection
Creating a collection on OpenSea is straightforward.
To create a collection, you must click on your account icon, where you should find the My Collections option. Click the link. This link will transport you to the collections page.
Click "Create a collection" in the "My Collections" section.
To build a collection, you must give it a unique name and add a logo. You can experiment with the numerous editing tools available on this page to give your collection a distinct appearance.
Additional potential features include a banner/cover image, category/description, and picking the royalties.
In addition, you must decide which blockchain the collection will reside on. Given that we will see how to mint an NFT on the Ethereum Blockchain, the collection will be placed on Ethereum.
Once the collection has been built, it can be populated with NFTs.
Minting an NFT
To mint an NFT under the newly created collection, click "Add New Item".
You will be directed to a page where you must upload the file for the NFT you wish to create and its name.
Optionally, you may include a link or description with the NFT. Additionally, you can add attributes, such as the year the NFT was made, to assist potential purchasers in filtering your collection of NFTs.
You can add unlockable things exclusive to the NFT's owner, like including a method for redeeming real-world assets associated with the NFT in question, such as a physical replica of the item or entrance to an event.
Finally, you must select the blockchain to which the NFT will be deployed.
The Ethereum Blockchain and the Polygon Blockchain are two prominent examples.
Both approaches have advantages and disadvantages, but to put it simply, listing an NFT for sale on the Ethereum Blockchain incurs gas fees, but selling on the Polygon Blockchain does not.
In this example, we will utilize the Ethereum blockchain. Ensure that you have sufficient ETH in your wallet to cover the gas fees associated with its creation.
Once satisfied with your work, click the 'Create' button and sign the message using your associated wallet. Thus, the selected file will be converted into an NFT.
Moving further, we will examine how to sell this NFT and how to purchase NFTs via the OpenSea marketplace.
If you wish to build an NFT without first creating a collection, you can do so by clicking "Create" in the upper-right corner of the homepage of your OpenSea web application. After completing this step, the above process remains unchanged, as you are redirected to the 'Create New Item' page.
Selling an NFT
After minting it on the selected blockchain, you can view your NFT in your OpenSea profile.
Now that you possess an NFT, you can sell it on the OpenSea marketplace. You can hit the "Sell" button, as depicted in the above image.
Here, you can select the sale options, including the number of NFTs you wish to sell and the price (if you minted several copies).
There are two ways to price your NFT when listing it on the market. Listed below are the various types of listing options from which you can choose.
- Fixed Price: This option allows you to set a fixed price for your NFT and select the duration of the NFT listing. When someone decides to purchase your NFT, OpenSea will transfer the sale money to your wallet once the 2.5% OpenSea charge has been deducted.
- Timed Auction: On OpenSea, purchasers can submit offers for NFTs; thus, selecting this option allows you to choose the highest bidder. Reserve prices can also be set. Timed auctions are ideally suited for selling limited editions of rare artworks, where there is intense competition among bidders.
However, it is also feasible for a buyer to bid on a fixed-price NFT you've listed.
This occurs when someone wants to purchase your work for less than its quoted price. You may accept the bid if you believe it to be competitive. However, take in mind that the majority of bids are automated.
Be cautious not to accept a too-low offer by accident.
After reviewing the sale's specifics, you may submit the listing by selecting "Complete Listing".
You must then sign a transaction on your wallet to finalize the sale. As this is your first time selling on OpenSea, you must initialize your wallet to proceed.
This concludes the listing procedure, and your NFT is now accessible on the OpenSea Marketplace.
Buying an NFT
Since NFTs have attracted many collectors and investors, you've probably wondered how to purchase an NFT on OpenSea. Now that you know how to mint and sell NFTs on OpenSea, let's examine how to purchase them.
Signing into your OpenSea account and utilizing either the Explore tab or the Search function to find an NFT that piques your interest is all it takes to purchase one.
Once you have located an NFT that you like to purchase, pick it and then select "Buy Now" or "Make Offer" if you wish to bid on an item. You will then be required to sign for the transaction. as easy as that!
If you submit an offer, you must wait until the buyer accepts or rejects it.
However, you must pay a gas fee if you need to cancel your bid.
If you select 'Buy Now', the transaction will take place immediately following your digital signature, and the asset will be sent to your wallet within a few minutes, on average.
If you wish to confirm that you have received your NFT, please navigate to the OpenSea menu, then to Account Profile, and then to the Collected tab. This is where you will locate all the NFTs you have stored at your wallet's address.
Note: It will take a while for your freshly acquired NFT to appear on your OpenSea account.
Coding an NFT: Solidity programming language
Now we will investigate a different method for creating and employing NFTs. We will examine how to create an NFT using the programming language Solidity.
Solidity is a contract-oriented, high-level programming language native to Ethereum, introduced by the Ethereum foundation in 2015.
Ethereum, as it is well known, is a cryptocurrency and a platform for developing blockchain-based applications. Solidity enables the building of smart contract-supported blockchain-based applications on the Ethereum network.
It is now one of the most popular solutions for blockchain application development.
Consequently, prior expertise with the Solidity programming language is essential moving forward.
Remix IDE
Solidity is a compiled, statically typed programming language. Solidity requires a compiler and locally installed development environment like other programming languages.
Here, Remix enters play.
The Remix is a web-based IDE incorporating the Solidity compiler and a coding environment.
Integrated Development Environment (IDE) is a software application with tools to aid programmers with software development tasks such as writing, compiling, executing, and debugging code.
The Remix is an integrated development environment (IDE) for developing, building, and debugging Solidity code.
It is an open-source web and desktop application, a development environment with several plugins, and a graphic user interface that encourages a rapid development cycle.
Remix IDE is typically used during the entire process of creating smart contracts. Visit https://remix.ethereum.org/ and navigate to its homepage to acquaint yourself with the Remix IDE.
The default smart contracts are located in the contracts folder on the left side of your workspace when you first run the Remix IDE. Navigate through them.
Note that the file extension for Solidity programming files is .sol.
Remix Configuration
You may temporarily delete these files, as we do not require them.
Before proceeding, let's make a few minor configurations. Change the Environment to 'JavaScript VM' by navigating to the Deployment and Transactions part on the left panel and clicking on the Environment option. The left side of the Icons panel has numerous icons.
Therefore, we are ready to code.
Project Setup
NFTs are tokens used to signify ownership of one-of-a-kind objects.
The process of creating a non-fiat currency is known as minting. This means that by minting an NFT, you publish an instance of your smart contract as a unique token on a blockchain.
Each token has its tokenURI, which holds the asset's metadata in a JSON file that conforms to a particular structure. In the metadata, you keep information about your NFT, such as its name, image, description, and other properties.
Introduction to the Project
We will develop an NFT smart contract to mint and deploy NFT tokens on the Ethereum blockchain.
It will adhere to the ERC-721 standard, the most used NFT standard. Your smart contract is an ERC-721 Non-Fungible Token contract if it implements specified standard API calls.
We will create NFTs called 'EmotionalTrees' that feature drawings of plants and trees in an emotional condition.
Once minted, you can view these NFTs in your Metamask as indicated above, similar to how when you produce or purchase an NFT from OpenSea, it appears as a token in Metamask.
Project Setup
In this section, we will configure a few things, and then in the following section, we will begin constructing our smart contract.
By now, you should have your Metamask on hand. To launch an application, activate the Metamask extension by clicking on it. Ensure that the network is set to "Ropsten Test Network", which is often used for development purposes.
However, you will need ETH to pay the deployment and minting fees for your NFT.
Enter your Metamask wallet address when prompted on the Ropsten Ethereum faucet. Once you have completed these steps, you will see test ETH in your Metamask account shortly.
For your application to communicate with the Ethereum Network, your app must be linked to an Ethereum Node.
Operating your own Ethereum node and maintaining the infrastructure is a costly and inefficient option for this project. However, nodes-as-a-service providers host the infrastructure on your behalf.
We will utilize Alchemy as one of these service providers for our project.
Visit their website and register for an account. In doing so, use Ropsten as your network instead of Ethereum.
Once your account has been created, navigate to your dashboard and select "view details" on your application. Then, click "view key" and save this HTTP key somewhere, as we will need it in the future.
Initializing the Project
Let's initialize the project by configuring and creating the proper folder structure. Enter the following command at your terminal/command line to create a new directory for your project.
mkdir nft-project
cd nft-project
Let's create the ethereum/ directory inside the nft-project/ directory and initialize it with Hardhat, a development tool that makes it simple to deploy and test your Ethereum applications. Here's how you would accomplish that:
mkdir Ethereum
cd Ethereum
npm init
The above code will kick-start the project. Now, execute the instructions below to create a Hardhat project:
npm install --save-dev hardhat
npx hardhat
The above code will result in the subsequent prompt:
Select an empty hardhat.config.js file. This will create an empty hardhat.config.js file, which we will modify later.
We will also require a web application to configure and process the NFT metadata using JSON files. To accomplish this, we'll use Next JS.
Now, let's return to the project's root directory, nft-project/, and establish a web-based Next.js application, as seen below.
cd ..
mkdir web
cd web
npx create-next-app@latest
The project configurations and setup are complete. The following is the proper file structure for your project:
nft-project/
Ethereum/
web/
Creating Environment Variables
Before constructing our smart contract, let's establish some crucial environment variables. What is an environment variable?
An environment variable is a value set outside the program, generally by an operating system or microservice function. These variables consist of key-value pairs.
Let's establish the necessary environment variables.
Remember the HTTP key that we obtained while configuring Alchemy? We will utilize this, along with the public and private keys of our Metamask account, to interact with the blockchain.
A program in execution can access environment variable values for configuration purposes. For this reason, we will construct environment variables.
To generate these variables, create a .env file in your Ethereum/ directory and execute the scripts below to install dotenv (Dotenv is a zero-dependency module that loads environment variables from a .env file),
cd ..
cd Ethereum
touch .env
npm install dotenv --save
Now, navigate to your .env file and add the following information to it:
DEV_API_URL = YOUR_ALCHEMY_KEY PUBLIC_KEY = YOUR_METAMASK_ADDRESS PRIVATE_KEY = YOUR_METAMASK_PRIVATE_KEY
You already possess your Alchemy key and should locate your public key in Metamask, which corresponds to your Metamask wallet address. Likewise, you will locate the private key in the Metamask account area.
Smart Contract for NFTs
Now is the time to work on the coding for our smart contract. To accomplish this, navigate to the Ethereum/ directory and create two additional directories.
- contracts/: This directory will contain the source files of your contracts
- scripts/: This directory will contain the scripts to deploy and mint our NFTs
The following describes how to accomplish this via the terminal -
mkdir contracts
mkdir scripts
Now, let's install OpenZeppelin. OpenZeppelin contract is an open-source toolkit containing pre-tested, reusable code that simplifies the creation of smart contracts. The corresponding command is shown below:
npm install @openzeppelin/contracts
Now, navigate to the contracts directory and create a source file named EmotionalTrees.sol. Note that the file extension for Solidity is .sol. Additionally, you may name your NFTs as you see fit.
cd contracts touch EmotionalTrees.sol
Below is the Smart Contract Code -
pragma solidity ^0.8.0;
import "@openzeppelin/contracts/token/ERC721/ERC721.sol";
import "@openzeppelin/contracts/utils/Counters.sol";
contract EmotionalTrees is ERC721 {
using Counters for Counters.Counter;
Counters.Counter private _tokenIdCounter;
constructor() ERC721("EmotionalTrees", "ETS") {}
function _baseURI() internal pure override returns (string memory) {
return "YOUR_API_URL/api/erc721/";
}
function mint(address to) public returns (uint256) {
require(_tokenIdCounter.current() < 3);
_tokenIdCounter.increment();
_safeMint(to, _tokenIdCounter.current());
return _tokenIdCounter.current();
}
}
Incorporate the preceding code into your Solidity EmotionalTrees file. We will look into the above code and attempt to comprehend each line. Copy the code to your file for now.
Understanding the Code
The first line of code in Solidity is known as the pragma declaration and is used to declare the Solidity version we will employ. The code often begins on the very first line of the Solidity file.
Following this pragma line comes the import statement for the OpenZeppelin module.
import "@openzeppelin/contracts/token/ERC721/ERC721.sol";
import "@openzeppelin/contracts/utils/Counters.sol";
We have established our contract and given it the name EmotionalTrees. This contract inherits the ERC721 contract since we require the ERC721 standard as our smart contract's "basis."
contract EmotionalTrees is ERC721 {
…
}
Therefore, we can utilize all EIP-721-specified methods securely.
We can use Solidity libraries in conjunction with Solidity via for. Using A for B directive indicates that library functions from library A are attached to any type B.
using Counters for Counters.Counter; Counters.Counter private _tokenIdCounter;
Utilizing a Counter to produce incremental IDs for our NFTs is useful. The preceding code fragment generates a Counter variable. The counter variable was named _tokenIdCounter.
Following this, we will develop a constructor and initialize the ERC721 contract with its name and symbol. Here, 'EmotionalTrees' is used as the name for the ERC721 token, while 'ETS' is used as the symbol.
The line of code below performs the same function -
constructor() ERC721("EmotionalTrees", "ETS") {}
function _baseURI() internal pure override returns (string memory) {
return "YOUR_API_URL/api/erc721/";
}
Next, we have altered the default _baseURI function of the ERC721 contract by returning our own URI in the preceding code snippet. The URL will be appended as a 'prefix' to all tokenURIs.
In the event of a local development environment, the URL for your API may be localhost.
function mint (address to) public returns (uint256) {
require(_tokenIdCounter.current() < 3);
_tokenIdCounter.increment();
_safeMint(to, _tokenIdCounter.current());
return _tokenIdCounter.current();
}
We then implement the mint() function. This function enables the blockchain publication of a smart contract instance.
_tokenIdCounter must be less than 2 because we will only construct two instances of our NFT at this time. If you want to mint more, you can eliminate this.
Within the mint() function, we increment the _tokenIdCounter variable by 1, so our ID will be 1, then 2, etc. Then, we execute the OpenZeppelin function _safeMint() to broadcast the token.
This is a basic NFT smart contract.
Now that we have the smart contract let's generate the Metadata file for our NFTs, from which we will retrieve all NFT details so we can finally deploy our NFT.
Building NFT Metadata
Let's focus on the NFT metadata now that we have a contract.
The actual content and description of the information defined in the contract and kept on the blockchain constitute the metadata of a non-fungible token. This is the opposite of how people often consider metadata.
In an NFT, a cryptographically uniform resource identifier (URI) found in the token points to the metadata. In this section, we will construct the metadata for our NFT, including the digital file, name, description, and other information.
There are typically three ways to store the metadata of an NFT:
- Storing the data on the blockchain. In other words, it is possible to expand your ERC-721 by storing the metadata on the blockchain, which can be expensive.
- To apply IPFS
- To have your API, return the JSON file.
Because we cannot modify the underlying JSON file, the first and second techniques are typically favored.
For this project's scope, we shall go for the third approach. Therefore, we will develop a simple API endpoint that returns JSON representations of our NFT's data.
Navigate to the web/ folder, locate the api/ folder within the pages/ folder, and create our dynamic [id].js route within the erc721/ folder. The route you should take is depicted below.
web/pages/API/erc721/[id].js
Enter the following JSON code in it:
const metadata = {
1: {
attributes: [
{
trait_type: "Tree",
value: "Short",
},
{
trait_type: "Mood",
value: "Sad",
},
],
description: "A sad tree.",
image: "YOUR_IMAGE_FILE_LINK",
name: "Sad Tree",
},
2: {
attributes: [
{
trait_type: "Tree",
value: "Long",
},
{
trait_type: "Mood",
value: "Happy",
},
],
description: "An happy tree.",
image: "YOUR_IMAGE_FILE_LINK",
name: "Happy Tree",
},
}
Ensure that you define the metadata for every NFT you plan to mint.
Now, navigate to the web directory and run the following command to launch your NextJS application:
npm run dev
Your application must operate on the localhost:3000 port. To verify that our endpoint is operational, navigate to http://localhost:3000/api/erc721/1, which should return a JSON object containing the metadata of your first NFT.
Now, let's go to the subsequent phase.
Expose NFT Metadata
Our program appears to function correctly. Since it is hosted locally, other applications cannot access it. Therefore, we shall publish the local machine's NFT metadata to a publicly available URL.
This is possible using tools such as ngrok.
Complete the registration process on ngrok.com, then unzip the downloaded file. Using the cd command, navigate your terminal to the directory where you extracted the ngrok package.
Execute the following command once complete:
./ngrok authtoken YOUR_AUTH_TOKEN
The next step is to construct a tunnel to your localhost:3000 web application. Below is the following command:
./ngrok HTTP 3000
On your terminal, you should observe the following -
ngrok by @inconshreveable
Session Status online
Account YOUR_ACCOUNT (Plan: Free)
Version 2.3.40
Region United States (us)
Web Interface http://127.0.0.1:4040
Forwarding http://YOUR_NGROK_ADDRESS -> http://localhost:3000
Forwarding https://YOUR_NGROK_ADDRESS -> http://localhost:3000
Now, navigate to YOUR NGROK ADDRESS/api/erc721/1 to ensure your endpoint is functioning correctly. So can you transfer your API to a publicly accessible URL.
Deploying the NFT
Now that our smart contract is in place and our metadata API is operational, the only remaining step before minting our NFT is to deploy the NFT.
Let's return to our ethereum/ directory and prepare to deploy our NFT. Before that, modify the _baseURI function() in your Ethereum/contracts/EmotionalTrees.sol file so that it returns your ngrok address, as shown below.
//Ethereum/contracts/EmotionalTrees.sol
contract EmotionalTrees is ERC721 {
...
function _baseURI() internal pure override returns (string memory) {
return "https://YOUR_NGROK_ADDRESS/api/erc721/";
}
...
}
Before deploying our NFT, we must first compile it with Hardhat. To simplify the procedure, we will install ethers.js, a library that seeks to provide a complete and concise interface to the Ethereum Blockchain and its ecosystem.
npm install @nomiclabs/hardhat-ethers --save-dev
Let's now change our hardhat.config.js file.
require("dotenv").config();
require("@nomiclabs/hardhat-ethers");
module.exports = {
solidity: "0.8.0",
defaultNetwork: "ropsten",
networks: {
hardhat: {},
ropsten: {
url: process.env.DEV_API_URL,
accounts: [`0x${process.env.PRIVATE_KEY}`],
},
},
};
We have configured the Ropsten network with our Alchemy URL and given it our Metamask account's private key.
Let's run it -
npx hardhat compile
This allows hardhat to generate two files for each contract compilation. The contracts/ folder should contain newly-created artifacts/ folder containing your compiled contracts.
Let's create a script to deploy our NFT to the test network. Create a deploy.js file in the scripts/ folder and add the following code:
// ethereum/scripts/deploy.js
async function main() {
const EmotionalTrees = await ethers.getContractFactory("EmotionalTrees ");
const emotionalTrees = await EmotionalTrees .deploy();
console.log("EmotionalTrees deployed:", emotionalTrees.address);
}
main()
.then(() => process.exit(0))
.catch((error) => {
console.error(error);
process.exit(1);
});
A ContractFactory in ether.js is an abstraction for deploying new smart contracts, so EmotionalTrees is a factory for token contract instances.
Calling deploy() on a ContractFactory will initiate deployment and return a Contract-resolving Promise.
This is the object that contains a method for every smart contract function.
Execute the deployment script now to view the NFT on the blockchain.
node ./scripts/deploy.js
You would see EmotionalTrees deployed: SOME ADDRESS in your terminal.
This is the Ropsten test network address where your smart contract is deployed. Visiting https://ropsten.etherscan.io/address/SOME ADDRESS should reveal your newly deployed NFT.
Let's learn how to mint an NFT.
Minting the NFT
Now that your NFT has been installed, it is time to mint some for yourself.
Create a new file named mint.js within the scripts/ directory. We will use ethers.js to simplify the procedure. Let's begin by including the ethers.js library.
npm install --save ethers
Now, add the following code to the mint.js file -
require("dotenv").config();
const { ethers } = require("ethers");
const contract = require("../artifacts/contracts/EmotionalTrees.sol/EmotionalTrees.json");
const contractInterface = contract.abi;
const provider = ethers.getDefaultProvider("ropsten", {
alchemy: process.env.DEV_API_URL,
});
const wallet = new ethers.Wallet(process.env.PRIVATE_KEY, provider);
const emotionalTrees = new ethers.Contract(
YOUR_NFT_ADDRESS,
contractInterface,
wallet
);
const main = () => {
emotionalTrees
.mint(process.env.PUBLIC_KEY)
.then((transaction) => console.log(transaction))
.catch((e) => console.log("something went wrong", e));
};
main();
We begin by acquiring the contract's interface (ABI).
A typical way to communicate with contracts in the Ethereum ecosystem, both from outside the blockchain and for contract-to-contract interactions, is via an Application Binary Interface (ABI).
Your ABI defines, in simple terms, how others interact with your contract.
Remember node-as-a-service?
Next, we constructed our provider with Alchemy. Yes! We next initialize our wallet using our private key.
Moreover, the main() function calls the mint() function in the newly deployed smart contract. The mint() method accepts only one parameter, 'to', which specifies the token's recipient.
We include the public address of our Metamask account, as we are minting for ourselves.
If all goes well, the transaction should be recorded on your terminal.
Access https://ropsten.etherscan.io/tx/YOUR_HASH using the hash property. There should be a coinage transaction there!
That is how you mint your NFT.
You should see an NFTs tab and an add NFT button if everything has been completed correctly. Click the button and enter the address of your smart contract and the minted IDs.
If you have followed the instructions correctly, you should begin with an ID such as 1.
You have minted and stored your NFTs in your Metamask wallet!
At this point, you should have a solid understanding of NFTs and hands-on experience creating NFTs using both Code and No-code!
Conclusion
Does dealing with NFTs Justify the Effort?
What began as a means of legitimizing digital art has grown into a multibillion-dollar industry! NFTs are the new kid on the block and have taken over the art world.
With the rapid interest in NFTs, one may ask if there is any damage in attempting to partake in this trend. As with many things in our world, the truth of NFTs is far more complex than they initially appear.
Could NFTs be a Bubble?
The underlying reason that NFTs have expanded quickly has nothing to do with their intrinsic value or accessibility to the typical investor. The hype around unproven technology and celebrity endorsements has partly generated overvaluation.
As evidenced by the collapse of the dot-com bubble and subsequent stock market meltdown in the early 2000s, despite a large number of investors, an overvalued assessment of website-oriented enterprises can eventually lead to bankruptcy.
These bubbles are fueled by affluent investors who have likely already invested in and hyped up new technology before the height of public interest.
By the time the typical individual begins investing in new technologies, affluent investors have already withdrawn and collected their profits.
While NFTs are likely to play a crucial role in the growing virtual economy, their applications are not yet fully developed!
What is the Future of NFT?
As a result of Facebook's rebranding as Meta, the world in which virtual ownership of objects becomes actual is rapidly approaching. As large corporations like Pepsi, Adidas, and Nike embrace the movement and join the metaverse revolution, the change becomes more and more concrete, and the surrounding buzz grows.
The scope of NFT artworks has expanded dramatically. Although gamification is not limited to the categories of basic GIFs and JPEGs, it is the next step that many developers are pursuing.
NFTs are a relatively new asset that may provide buyers with unforeseen obstacles. Undoubtedly, there is still a great deal of work on NFTs.
Nonetheless, it is abundantly evident that the technology is still in its infancy and poised to improve the Internet as we know it.
The moral of this narrative is that the future of NFTs remains uncertain. Time will reveal the answer, as they say!
I hope the article helped!
You may also like to Explore -
NLP: Natural Language Processing | The Ultimate Guide
Top 9 Emerging Technology Trends For this year
Which JavaScript Framework should you learn?
Cheers!
Happy Coding.
About the Author
This article was authored by Rawnak.
