Welcome to Module 6 Course 2 of Mission Web3!
In this lesson, we will explore how to buy (mint), sell, and forge NFTs.
How To Buy/Mint An NFT
The process of buying a non-fungible token (NFT) is commonly referred to as "minting" or "purchasing" an NFT. Minting in the context of non-fungible tokens (NFTs) refers to the process of creating a new unique digital asset and recording it on a blockchain.
This unique digital asset is the NFT itself. Minting essentially transforms a regular digital item or piece of content into a one-of-a-kind, indivisible token that can be bought, sold, and owned on the blockchain.
Ready to dive just a little bit deeper? Buckle your seatbelts because here we go…
Creation of Digital Asset: The process begins with the creation of a digital item or piece of content, which could be anything from digital art, music, videos, virtual real estate, collectibles, in-game items, and more. This digital item represents what will become the NFT.
Metadata: Metadata is additional information that can be associated with the NFT, such as the creator's information, a description of the item, its attributes, and any other relevant details. This metadata helps provide context and information about the NFT.
Token Standard: NFTs are created based on specific token standards, most commonly ERC-721 or ERC-1155 for Ethereum-based NFTs. These standards define the rules and behaviors of the token on the blockchain, such as how it can be owned, transferred, and interacted with.
Smart Contract: A smart contract is a self-executing code that runs on the blockchain. To mint an NFT, a creator interacts with a specific smart contract designed for that purpose. This smart contract includes the rules for creating and managing NFTs, including how they are uniquely identified and how their ownership is tracked.
Minting Process: The creator initiates the minting process by interacting with the smart contract through a minting interface provided by an NFT marketplace or platform. This interface typically prompts the creator to upload the digital file, input metadata, and specify any additional details.
Gas Fees: Similar to other blockchain transactions, minting an NFT requires paying a transaction fee known as "gas." This fee compensates miners who process and validate the transaction on the blockchain.
Confirmation: Once the required information is submitted and the gas fee is paid, the smart contract processes the request and creates a new NFT. This NFT is now uniquely identified on the blockchain and linked to its metadata and digital content.
Ownership: The creator or artist is initially the owner of the newly minted NFT. However, they can choose to sell or transfer ownership of the NFT to others on the same blockchain.
Blockchain Record: The entire process of minting, including details about the NFT, the creator, and any associated metadata, is recorded as an immutable entry on the blockchain. This ensures transparency and traceability of the NFT's history.
In essence, minting transforms a digital creation into a rare and verifiable digital asset on the blockchain, granting it the characteristics of uniqueness, indivisibility, and provable ownership. Once minted, NFTs can be traded, sold, and showcased within NFT marketplaces and other platforms that support their standard.
How To Sell An NFT
Selling a non-fungible token (NFT) involves the process of transferring ownership of the NFT from the current owner (seller) to a new owner (buyer) in exchange for a mutually agreed-upon amount of cryptocurrency.
Here's a general outline of the process:
Choose a Marketplace: Select an NFT marketplace where you want to sell your NFT. Popular options include OpenSea, Rarible, and Mintable. Create an account if you don't have one.
Connect a Wallet: Most NFT marketplaces require you to connect a cryptocurrency wallet that supports the blockchain on which the NFT was minted. Ethereum wallets like MetaMask are commonly used.
List Your NFT:
Navigate to the "My Items" or "My Collection" section of the marketplace.
Find the NFT you want to sell and select it.
Choose the "Sell" or "List for Sale" option.
Set the Price:
Specify the price at which you want to sell the NFT. This can be in Ether (ETH) or other compatible cryptocurrencies.
Some platforms might allow you to choose between fixed prices or auctions.
Choose Payment Settings:
Some platforms allow you to choose whether you want to receive royalties on secondary sales. This means you'll earn a percentage of the sale price whenever the NFT is sold in the future.
Add Listing Details:
Fill in any additional details about your NFT, such as a title, description, and relevant tags.
Upload images or videos that showcase your NFT.
Confirm and Sign:
Review the listing details and confirm that everything is accurate.
Sign the transaction using your connected wallet.
Gas Fees: Keep in mind that there might be gas fees associated with listing or selling NFTs. Gas fees are transaction costs on the blockchain network and can vary in price and speed.
Wait for Confirmation: After confirming the transaction, you'll need to wait for it to be confirmed on the blockchain. This can take a few minutes to several hours, depending on network congestion.
Publicize Your Listing: Share your NFT listing on social media or within communities to increase its visibility and chances of getting sold.
Remember that selling NFTs involves interacting with blockchain networks and cryptocurrencies, so it's important to be cautious and aware of potential risks.
Always double-check the details before confirming any transaction.
Complete Course 2 here then proceed to the next course.