NFT — very fundamental explanation

Nowadays, in crypto world it is not possible to go around the market or startups and not hear about NFTs.

Most of the people explains these tokens as stupid images, which can be downloaded by easy right click with mouse.

Why NFTs are so hated? What do they represent? What smart contracts have to do with that?

Answers for these and more questions are included in this material.

Agenda:

• intro,
• definition,
• how do they work?
• how to create an NFT?
• smart contracts,
• types of NFTs,
• most famous collections,
• opportunities.

Definition

NFT (non-fungible token) is a representation of digital or also physical assets. Think about it like a license/certificate, which is totally decentralized. This license indicates who is an owner of a concrete asset.

The proof is proceeded by validating it with crypto wallet. Only the person who maintain wallet with public key included in NFT ownership, can sell buy or use this token.

How they work?

Easily said, NFTs are digital and decentralized licenses. License can be bought or just made. Buying NFT is pretty simple, it requires crypto wallet with sufficient holdings and the Internet connection.

There are different marketplaces with NFTs, for example the most famous — OpenSea or Rarible, etc. The point is to log in to the marketplace, but there is a tricky part. In web3, authentication is proceeded with wallet, not email and password.

Signing in with wallet is super easy, it can be done with wallet as an extension on browser, what requires few intuitive clicks, or by wallet connect service and mobile wallet. It requires only opening wallet on mobile and then scan the QR code. After confirming and signing, account is ready.

To buy an NFT, select the available one and proceed transaction with wallet. It will automatically attach charged fees. Once the transaction is completed, you can see on blockchain explorer the confirmation.

How to create an NFT?

As a developer, it is practically not so difficult to release new NFT. It is needed to create own smart contract on chosen blockchain network. Smart contract should include external function for minting tokens.

Deploying smart contract can be proceeded easily with remix IDE, just needed is a few payment from the wallet which deploys it. Once it is deployed, it is needed to mint a token, by function Mint in smart contract. Let’s provide necessary arguments and coins. After few moments token is on your wallet.

Smart contract in NFT

All NFTs are basing on smart contracts. Well implemented code is crucial to avoid bugs, or even financial problems. How is it connected with NFTs?

Every NFT on marketplace has in expanded details contract address. Like it was described in creating token process, contract allows to mint. Minting in other words, mean selecting NFT.

Smart contract describes how much it costs to mint for the first time, defines fees for creators, etc. Without smart contract it is impossible to release a token.

Types of NFTs

• PPFs and Avatars,
• One of one artwork,
• Generative arts,
• Collectibles,
• Photography NFTs,
• Music NFTs,
• Gamified NFTs.

Most famous collections

NFTs are famous from top selling collections, they cost incredible amount of cash. Let’s see top of them:

• bored ape yacht club,
• Crypto punks,
• Flyfish club,
• Lucky block.

Opportunities

NFTs are opening the window for a bright future of proving the ownership without any third party institutions. Storing informations on blockchain, about owners of for example apartments, lands, etc. can be very profitable.

Skipping payment to the middleman is not the best advantage, but storing it in decentralized way is the true power. It can not be modified, or even lied that someone is owning some assets. Imagine world with transparent and super secure way of proving what is yours.