A blockchain is a global network of thousands or even millions of computers or “nodes.” Each node in the network tracks and records every transaction. Every time you buy or sell crypto currency, the transaction is recorded in a shared database known as a ledger. Before a “block” of encrypted data can be added to the ledger, most computers in the network must solve complex mathematical puzzles to verify the accuracy of the data. Once that’s happened, the block is “chained” to previous blocks recording earlier transactions, all the way back to the very first transaction. Because the computational work needed to verify transactions is so great, no individual or group can add fraudulent transactions to the blockchain. So, authenticity is never an issue. Blockchain technology can also be used for other things and through this, you can establish who owns which media. It is recorded who created a unique digital work as well as every time it changed hands a digital record is created on the Blockchain going forward. You can establish a trustworthy inherent record of a work’s provenance which is and will remain unfalsifiable. That’s the blockchain revolution makes it possible to also create scarce and valuable digital assets like an Art-NFT.

It is a non-fungible token and provides a unique record of ownership of a digital asset held on a decentralized database and cannot be falsified. When an artist creates digital art and sells a work of art as an NFT, the buyer will really pay for the token that proves the ownership. An Art-NFT is a unique digital collectible secured by the blockchain. The psychology behind collecting explains why anyone would be prepared to pay a lot of money for an NFT even though you can download digital art with a click of your mouse. People want to own scarce collectibles, and blockchain technology provides such guarantee of ownership.

An emerging trend is to combine NFTs with “social tokens” that can give buyers special privileges like getting access to a club or other benefits. But to start your journey into NFTs and the Blockchain you’ll need cryptocurrency LIKE Bitcoin, Ethereum or others. Which cryptocurrency depends on which marketplace you intend to use. You will first have to create a wallet to convert some of your money into crypto. For this you will have to download a wallet app. MetaMask or Coinbase are popular options for a wallet. With the app you will be able to create your crypto account. Be sure to write down your private key on a piece of paper and keep it in an absolutely safe place. Then you can transfer your currency and convert it into crypto to fund your wallet.

Now you can go to platforms like OpenSea, Rarible, Mintable, SuperRare and KnownOrigin. and create your user account. This part of the process should be familiar if you ever used an online marketplace like eBay. The only difference is probably that you will be asked to connect your crypto wallet rather than entering your credit card or PayPal details. Some NFTs are sold for a set price. In that case, you’ll be given a “buy now” option. Other sales are auctions, which means you’ll be bidding for NFTs against other prospective buyers. Some vendors prefer to take individual offers, in which case you just need to enter the amount you want to pay and the expiration date of your offer. Once the exchange is complete, the NFT will appear in your wallet. Note that these online platforms charge a fee for each transaction of around 2.5%

If you create or own an NFT it must be added to the blockchain. This process is called “minting”. You do that on your favourite online trading platform like OpenSea. Before uploading, or “minting” an NFT, you must create a collection. That’s basically a folder where you will upload your NFT(s) to. It is vital o chose an outstanding name. The name of your collection is the first thing potential buyers are going to see. Think of it as your chance to stand out in a crowded marketplace. To validate the process, you will have to verify your wallet. Now you can add and upload the (new) file you want to turn into an NFT and name and describe the NFT. Hitting “CREATE” starts the minting process and after confirming this step, the NFT will appear in your wallet. You can make an NFT out of pretty much anything, even a tweet, a GIF or a photo, a video, or digital artwork. The only limitation is copyright. You must own the rights to mint the material or have permission to use it.

The urge to collect is a desire that can be traced back to childhood. If you ever collected Stamps, Pokémon cards sneakers or Paintings, there is always someone bidding on that ultra-rare object which completes their collection. NFTs may only exist online, but they are collectibles just like that. As it is in the analogue world, the dynamic behind digital collection is just the same. There is more demand for anything that is rare. Scarcity combined with demand guarantees rising value. It does not matter whether you’re talking about an Impressionist painting or a blockchain token. You can continue to collect. You don’t have to sell. But if you want to sell, depending upon the platform you are using, you do not have to set a price, but you can. You are given the option to wait for buyers and sell at a fixed price or wait for offers. There is something like a “Dutch Auction” where you start with a high price that gradually decreases over time. The first person to accept the price wins.

And this ends our crash course on NFTs and the Blockchain. If you wish to learn more or seek an expert working for you on your journey on the Blockchain, let us know. As a part of the entire Art Installation, unique digital art will be created based on the two original oil paintings in the form of an NFT to be added, or to start the owner’s exciting future art collection on the Metaverse. We have the Experts to assist and turn your digital project and ideas into reality. Creating digital Art, starting an online NFT-Art collection, building your fully fledged virtual digital art gallery or Handling your Project and Community Management.