NFT: A basic Introduction
This article provides a basic introduction of NFT and the basic concepts surrounding it such as Minting, blockchain, etc.
Summary of a tweet I wrote about NFT
You have been hearing a lot about NFT lately and how people made money buying and selling NFT. What is NFT's and how can you make money from it? This thread Thread is all the basics you need to know about NFT and how to make money from it.
NFT stands for Non-fungible token. still confused right?
The term "Non-Fungible" simply means that is unique and cannot be replaced with something else. Example money is fungible because it can be replaced for the same money you have. $10 can be exchanged for two $5 bills. 1/
Items such as art, music are non-fungible because it is unique. Even though the artist or creator decides to sell it, he would have something completely different and not that same piece of art. You get right? Now how does NFT work? 2/
You have heard about blockchain, right? We cannot fully discuss NFT without defining blockchain. Simply, blockchain is like having an excel sheet or let's call it a database that stores people's transactions and details. In this case, It is stored online on the internet. 3/
However, blockchain databases can only be written and read from. This means that once data is written on the blockchain, it cannot be edited or deleted, instead a new copy of the data will be stored in the blockchain with an update on the old data (a lot more in between). 4/
Oh, I forgot to mention that blockchains are decentralized (meaning that no one individual has autonomy over things that happen in the blockchain), It lives on several nodes or computer networks, every node has a copy of the data, and it is secured (just a basic intro). 5/
What this means is that people trust blockchain because of its decentralization, security, and several other features. Blockchains are the masterpiece of cryptocurrencies such as Bitcoin, Ethereum, etc. Please enough of blockchain, let’s continue with NFT. 6/
NFTs can be part of several blockchains but the most popular is the Ethereum blockchain. Remember that Ethereum is crypto just like Bitcoin, dogecoin, etc. However, its blockchain supports NFT.(just a basic intro). How does NFT concern blockchain? 7/
Assuming I have music, artwork, etc, if I decide to mint(i will explain mint later) it as an NFT, it will be registered in the blockchain and have unique details and data. Those details include my wallet address (not your house address, details later) 8/
If someone else tries to register a fake or copied version of my art or music, it is no longer rare and mine is considered as the original. (There are a lot of details to that), but at least you understand what I mean. Now, how do I buy and sell NFT? 9/
Just like any product, NFT is sold at an online digital marketplace, most popular in the NFT space is @opensea. The problem is that you cannot buy NFT with local currency such as the Dollar, rather Cryptocurrency such as Ethereum. Therefore you need a crypto wallet/account. 10/
or you can join FTX using https://ftx.com/profile#a=74599881 both of them are good platforms. There are other good platforms you can also join, the choice is yours. Now to the sweet part of the thread. How does one make money from NFT? 12/
I know this is the part you have been waiting for, just like every business it comes with its own profit and loss. You can make as much money as well as lose. When you visit a marketplace like @opensea, you will see a lot of NFTs for sale such as art, collectibles, etc. 13/
You can buy and resell, that way you make money. Some people prefer to buy NFTs before they hit the marketplace so they can determine their price in the marketplace while others prefer to buy from the marketplace. Either way, minting is involved (more details later). 14/
Don’t forget the price is subjective, people have sold a screenshot of a tweet for millions, a 50 seconds video for hundreds of thousands. So when you buy, you fix a price that you would like to sell, if a buyer likes your price, they will either bargain or buy it outrightly. 15/
I would advise that you be careful while buying or selling your NFT. Be careful of the NFT you buy to avoid not being able to sell, be careful of fraud in the space to avoid. I know the thread is already long, but let me end by explaining minting. 16/
What is minting in NFT? It is simply how you register your NFT in the blockchain. Before you create an NFT you will register it in the blockchain to your wallet address, so everyone knows you own it. It also happens when you buy or sell. The only problem is the Gas fee. 17/
What is a Gas Fee? It is simply that small price you pay when you successfully conduct a transaction in the blockchain. Remember to Register, buy or sell NFTs are all blockchain transactions and are registered in the blockchain. 18/
I think I will stop here. However, I advise you read more before spending your hard-earned money buying or selling NFT to avoid losing money. My friends Google and YouTube will be a great resource guide for you. 19/
I am Vickjoe a Technical Writer, Software Developer, Community Leader, Web3 Advocate and I will tweet mostly about fun stuff, Software Development, Blockchain, Crypto NFT, etc.
I think you should follow me though. https://twitter.com/IamVickjoe