NFT for Dummies: The Only Guide You Need
Everyone has been going crazy over NFTs. Let's look at what NFTs are and how they fit into the blockchain world. Are NFTs a scam, or do they have potential?
NFTs are the hottest topic in town. There is so much speculation about whether NFTs are the future and if they’ll change the world.
Total NFT sale volume was almost $25 billion in 2021. We saw top celebrities and creators selling their NFTs on platforms like OpenSea and Rarible.
There’s so much talk about how NFTs will change ownership of assets and make everything more secure.
But most people don’t stop to research what an NFT actually is and how it exists on the Ethereum blockchain.
That’s why I have made this NFT for dummies article to clear any doubts you might have about NFTs.
NFT for Dummies: What are NFTs?
You’ve definitely heard of Bitcoin and Ethereum. These cryptocurrencies can be bought and sold. One Bitcoin is the same as any other Bitcoin, just like normal currency.
NFT stands for non-fungible tokens. One NFT is not the same as any other NFT. This might sound confusing. Let’s take a look at houses in residential areas to understand this better.
On the street, there are ten houses. While they look pretty similar, there are subtle differences. Each house has different interiors. Some have lawns, and some don’t. They are all houses but different in their own way. NFTs are very similar.
NFTs provide assets and content with a certificate of ownership linked to an Ethereum account.
Every NFT is one of a kind as it is non-fungible.
How are They Stored on the Blockchain?
The Ethereum Blockchain gave us smart contracts. A Smart contract is code that is stored on the blockchain and can be run. An NFT is created typically using an ERC-721(you can use others also) contract.
You can think of it as a template. To create your NFT collection, you would have to inherit the ERC-721 contract.
Let’s take a look at the above example. We have created an NFT contract called MyPokemon, which inherits ERC-721.
Every time the owner calls the safeMint function, the _tokenIdCounter is incremented by 1, and the token is sent to the desired address.
What about NFT data?
You might be wondering where NFT data is stored. Where is the image?
While we could use the smart contract(blockchain) itself to store the image, it would not make sense. It would cost a lot of gas fees.
Instead, we make use of a decentralized database like IPFS. You can think of IPFS as decentralized S3 storage.
We store the IPFS link on the smart contract. Platforms like Rarible use this IPFS link to display asset images.
Why are some NFTs so expensive?
You’ve seen some NFTs getting sold for millions of dollars. You’ve probably heard of people making a living flipping NFTs. While a few might be successful, I’m going to burst your bubble and tell you that NFTs are not worth it yet.
I’m going to be brash in this NFT for dummies guide. NFTs are being used as a Ponzi scheme right now. Most people are trying to make quick money from vulnerable people.
Big accounts are pumping NFTs using aggressive marketing and then dumping them onto the common crowd.
NFT for Dummies: The Future of NFTs
While NFTs are being exploited right now, they have immense potential.
Many companies are paving the way for the future. NFTs are being used as event tickets, exclusive merchandise, game resources, and more.
Companies such as Nike, Adidas, Louis Vuitton, and more are getting into the NFT game by selling exclusive content. Even Mercedes-Benz has the G-class NFT project.
NFT must reach mass adoption. Everyone should start using NFTs for them to gain traction. That’s why NFT for dummies resources are so important.
NFT used for branding is very powerful. Customers get more involved with the brand, which results in a better connection.
Concepts like the Metaverse would integrate NFTs for various things like clothes, shoes, digital property, etc.
The possibilities are endless.
How does dArticle.io use NFTs?
We at dArticle use NFTs to store your article on the blockchain. Users can mint NFTs for free. The NFT is used as proof of ownership. Eventually, the address linked to NFT will receive rewards based on views.
We aim to get all articles on the blockchain and provide equal earning opportunities for writers worldwide. Writing is a form of liberation, and we want to provide a platform for all writers.
This NFT for dummies article also explains to users what it means to post on dArticle.io. Every article is an ERC-721 token on the Polygon chain.
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