Two notes in one month. Only the most useful, relevant and practical entries on finance and money. If you like our notes, invite your friends to subscribe here.
Hot Topic in Finance
Industry conversations we think you should know.
What is the Deal With NFTs?
We are glad you asked!
NFTs appear to be the new fad. Whether they’ll fade away or they are here to stay, we don’t know. We do have thoughts however about why they seem to be so popular! You can check that out on our blog.
The world of finance made simple and relatable
How Do NFTs Work?
Remember that newsletter on cryptocurrency and the blockchain? Click this link for a refresher.
NFTs work mostly on the Ethereum blockchain (other blockchains can also support them), however, as they are Non-fungible, it only means that information stored is slightly different from what we have with the coins. There is a digital signature in individual NFTs that makes it so that it is not equal to another or can be exchanged for another.
So, how are they created?
The process of converting digital or physical data to an asset available on the blockchain and making it available for purchase is called minting. Doing this would require taking the following steps:
1. First and very important step, you create and fund a crypto wallet. Your wallet is where your NFT will be stored.
2. Link your wallet to any online digital marketplace. There are various. Examples include Opensea, Rarible, Zora, and Foundation.
3. Create the digital asset you’d like to turn into an NFT. Be sure it hasn’t yet been copyrighted. Upload it. Be sure to include a title and your description.
4. Mint your NFT. You will be charged a fee for it. This will be taken from your crypto wallet.
Here is an article you can read if you feel like you need more information.
Fun, useful stuff you will absolutely love!