author | Joe McNaney
Original title 《The most complete analysis ： The potential of the new digital golden age 》
stay 2021 In the first few months of , Heterogeneous token （NFTs） Into the public eye ： Art auction houses such as Christie's and Sotheby's can provide digital artists Beeple、Larva Lab The works of the team and others were sold at a high price . that , Why do collectors want to work for a JPEG Document issuance 6900 A high price of more than $10000 ？ ok , When you buy NFT when , You're not just buying JPEG, You're still buying Token.
Whatever your experience with cryptocurrency , You will be familiar with the idea that scarce assets and resources often have value . Provable scarcity 、 Immutability and programmability are just NFT Several aspects of obtaining its value .
From the artist's point of view ,NFTs Provides the potential for a new digital golden age . This article aims to be the first stop of their inevitable in-depth research in the rapidly developing and evolving world of non replaceable tokens . Good luck .
What is a nonhomogeneous token （NFTs）？
Investopedia Put the unforgeable token （NFT） Defined as “ Encrypted assets on the blockchain , With unique identification code and metadata , They can be distinguished from each other . Unlike cryptocurrency , They cannot be traded or exchanged equivalently . This is different from replaceable tokens such as cryptocurrency , The latter are the same as each other , Therefore, it can be used as a medium for commercial transactions .”
Digital assets created so far , Most exist in their own asset classes , Usually controlled by the company that created them ; stay GoDaddy The purchased domain name cannot be used as Twitter Of handle,Fortnite Your skin can't be brought into Madden, wait .
Standardization is a benefit of digital assets ,NFT It's easy to move from one developer's Sandbox ecosystem to another .
In the public chain （ Like Ethereum ） Build assets and leverage NFT, Standardize the digital asset economy , And open up new ways to create and obtain value . for example , A car with a New York state license can still drive in Florida , Because the national road rules are standardized .
One NFT Interoperability allows the existence and prosperity of free markets . It's like you can go to a thrift market or Wal Mart and eBay Sell the product on , You will have the freedom to exchange or trade your... In the way you want NFT.
Your assets are more liquid than ever ,Web 3.0 yes “ Third generation web sites and Internet applications , Will focus on understanding using machine based data , To provide data-driven and semantic networks ”, Provide creators and enterprises with the most frictionless market access opportunities in history .
Through your digital wallet （ Such as MetaMask） Simple signature , You can send a unique asset from your local mall to the Taj Mahal in a few seconds , This process used to take a few days and a few hundred dollars . Ethereum will allow your creative masterpieces to be seen and purchased by anyone around the world through cryptocurrency wallets . please remember , You don't just use JPEG Send email , Every Token All have unique identification codes and metadata , Distinguish them from each other .
Immutability and provable scarcity
In view of your NFT Unique metadata , People can review the token and create its smart contract , To determine how many tokens are generated in the same set , And whether it is indeed 1 in 1.OpenSea Pointed out that ,” Developers can also enforce specific properties that do not change over time by coding on the chain . This is especially interesting for art , Because art largely depends on the provable scarcity of original works .”
Web 3.0 Assets are similar to those that exist in Web 2.0 Digital assets in , or “ The second stage of the development of the World Wide Web , Especially characterized by the growth from static web pages to dynamic or user generated content and social media ”.NFTs It's completely programmable , Complex mechanisms can be used , Including but not limited to ： future NFTs Generative coding , Exchange existing ERC-20 Tokens, , Even change over time NFT The name of .
Games are probably the brightest space for programmability . From one of the earliest blockchain based games “CryptoKitties “ So far, Ethereum based games , stay “Axie Infinity “ People in some countries make money by playing it , Obviously ,NFT The utility of the game comes from its programmability , The resulting assets have value beyond emotion or scarcity .
Why put all this together to make NFT Become a disruptive opportunity ？
In a word ： De centralization .NFTs Has and will continue to subvert the digital economy , Because people are beginning to realize that based on Ethereum Of NFT How similar the market is to the traditional physical market . If Best Buy With 2000 It's sold in dollars MacBook, And Wal Mart is 1850 It's sold in dollars , The free market is likely to play its role , Push the business to Wal Mart , Because they charge less for the same product . The previous scenario assumes that Best Buy And Wal mart are equal in other ways , But that's not always the case . Suppose you live in the countryside , Current Best Buy It's a long way from you 10 Minutes away , But the nearest Wal Mart is... Away from you 10 An hour's journey . It will take your time and gas , May prevent you from pursuing lower priced computers . In this free market system , There is a lot of friction .
therefore , The emergence of the Internet and e-commerce . Click a few buttons , You don't even need to go to the store , How nice! ！ But there is still a problem , That is, centralized companies like Amazon are slowly eliminating small creators , Because they don't have enough manpower to produce products quickly . Of course , There is also the problem of transporting and tracking physical goods . If there is a way to transfer assets from one person to another , Prove that you created it , And allow consumers to use it , You don't need giant companies to fake monopolize your products . welcome Web 3.0、 Blockchain and NFT technology !
Look at the chart below , understand Web The timeline of development .
NFT A brief history of , from Crypto Kitties To Axie Infinity
CryptoKitties、CryptoPunks and Ethereum Name Service It's early 2017 Some of the earliest... That began in NFT project .CryptoKitties It has attracted much attention as one of the first blockchain contracts deployed in the entertainment field .CryptoPunks Widely accepted as the first ERC-721 NFT series , And in 2021 The promotion of NFT The need for historical relics and incarnations , In your digital capacity . Then we have The Ethereum Name Service, It predates ERC-721 The invention of tokens , But technically, it is still a NFT.ENS Domain name can be in ENS Buy... On the website , Intended to be a human readable wallet address , You can link to your Ethernet wallet . Rather than taking NFT Or tokens to an address that looks like this ,”0xd8dA6BF26964aF9D7eEd9e03E53415D37aA96045″, It can read like this , vitalik.eth. This address belongs to the current representative and co-founder of Ethereum Vitalik-Buterin.
from Kevin McCoy Of “ quantum “ To colored coins 、Counterparty、Rare Pepes、Cryptopunks and CryptoKitties, Deepen understanding NFT Some decisive moments in history .
One NFT What does it stand for ？
It's important to understand , although NFT It can be art , But not all of them are .
NFT Other use cases include, but are not limited to ： Intellectual property documents 、 Records of historical relics 、 Proof of ownership of physical and digital assets 、 game 、 Programmable digital art 、 music 、 video 、 Partial ownership of real estate 、 Social tokens 、VR Wearable device 、 Virtual real estate 、 Tickets for the event 、 Subscription badge 、 Blockchain domain name, etc .
As mentioned above NFTs Some of the most notable and highly anticipated use cases are virtual real estate and games . This excitement comes from a called “ Meta universe “ Ideas , Or a virtual world with scarce and real value . Forbes Cathy Hackl In her recent article “Metaverse Coming soon , This is a very big problem “ Took a bullish stance .
Some of the most striking Metaverses Include ：Decentreland、The SandBox Game、Crypto Voxels wait .
For artists 、 For developers and content creators , The need for your skill set and creativity has never been higher ！ Now there is a huge emerging community . Every day there is a huge emerging community developing , Accept the participation of all artists and creators , Look at 2021 year 7 month , Historical sales and statistics of the top virtual world .
Although it may sound like a video game , But it's so much , Because these platforms are built on Ethereum blockchain . Maybe it's a good time to delve into the little diamond symbol you see in the figure above . That's used to mark ETH One of the symbols of sales , It is the native token on the Ethereum blockchain .
Homogenous and non homogenous
from Investopedia The second message from the definition of is ,NFT Can't be exchanged for the same thing . Take an example of the traditional art industry , Da Vinci's “ The Mona Lisa “ And Diego - Velasquez's “ Las Meninas “ They are all famous 、 Valuable works of art , however , No one walks into a cafe , hand over “ The Mona Lisa ”, Then ask for “ Las Meninas “ In exchange for ……NFT It's unique , therefore , You guessed it , Is irreplaceable .
In the market, , You often see an unforgeable token next to 1/1; However , You will also meet people from 2/2 To 10,000/10,000（ Or more ） The change of . Although many people have multiple cast copies of Token be called NFT, But technically , This is not true . whatever Token, If there is a symbol after it , Indicates that there is more than one such Token Cast onto blockchain , That's it “ Semi homogeneous tokens ”.
The often overlooked function of semi homogenous tokens is different from that of non homogenous tokens . As an artist , You may want to consider why before you coin your favorite blockchain , You have to make multiple copies of your work .
Decompose various ERC Token standard
Smart contract standards make Ethereum's continuous innovation possible , They continue to bring more and more people , Hope to organize values and agreements in new ways on the Internet .
Although one can create thousands of art types , But a new encryption artist needs to understand the different types of... They may encounter Token（ Smart Contract Standards ）. For this comparison , We will use... On the Ethereum blockchain Token type , Although we will cover other blockchains later .
What is? ERC-721 Token？
ERC-721 Token It's a kind of having ERC-721 The unforgeability of smart contracts Token. these Token It's unique , Distinctive , Rare .
What is? ERC-1155 Token？
ERC-1155 Token It's based on ERC-1155 Semi homogeneity of smart contract casting Token. These tokens may be quite abundant , And may have the same characteristics as ERC-721Token Different effects .
hold ERC-721 Token Imagine a concert ticket with a designated seat , and ERC-1155 tken It's an ordinary ticket . Although ordinary tickets can be exchanged with others at the concert , But tickets for designated seats cannot be exchanged . Although both tickets are valuable , But they are not dollars , You can't go to the franchise booth and use the ticket to pay for hot dogs , Because although it is valuable , But this value comes from the specific utility the owner obtains from owning the ticket , under these circumstances , Is to enter the concert .
What is? ERC-20 Token？
One ERC-20 Token It is neither an unforgeable nor a semi forgeable Token.ERC-20 Token Is a completely replaceable Token, Its function is similar to BTC Or dollars .
In your journey as a cryptocurrency artist , You'll often meet ERC-20 Token. They are decentralized Finance （DeFi） A key role of ,DeFi And many organizations in Ethereum use their own ERC-20 Token.
image Portion and Rarible In this way NFT The market has its own ERC-20 Token, Namely $PRT and $RARI.
How to create （” Casting ”）NFT Artwork
As an artist who enters the crypto art world , They may be eager to sell , But first take time to educate yourself , Understand the basics of cryptocurrency and the process of creating cryptocurrency wallet , Use Ethereum network , And cast your first NFT. There are stories about artists and creators outside , They didn't take the time to understand the context of cryptocurrency , Eventually lost a lot of money ,（ The author of this article is one of them ……
After learning about cryptocurrency and DeFi The risk of 、 Volatility and mechanism , You need to buy cryptocurrency related to the blockchain you plan to cast art . Developed or under development NFT The most compelling blockchains for compatibility include ：Ethereum、Tezos、Wax、Binance、Cardano、Polygon（MATIC） and Flow.
For the sake of simplicity , We will continue to use the... On the Ethereum blockchain NFT For example , Because it is the most widely used .
The first 1 Step ： Buy ETH And set the wallet
stay Coinbase、Gemini、Binance or Kraken Wait for the centralized exchange to register an account .
Buy ETH. Please note that , Ethereum is a blockchain that handles transactions ,ETH Is the cryptocurrency you want to buy .
download MetaMask The browser extends and creates a cryptocurrency wallet .MetaMask As a wallet you will carry with you , And your Coinbase The account will behave like a bank .
Write down your mnemonics , And keep it safe , Never use numbers ！“Web 3.0, And the disadvantage of blockchain based decentralized application is that there is no password recovery . If you forget your password , Your mnemonic will be the only way to access your wallet again . Write down your mnemonic words on a piece of paper （ Recovery phrases ）, And put it in an absolutely safe place .
The first 2 Step ： Choose which NFT Sell in the market
For those who want to cast 1 For people who want to create digital art , Can consider planning the market , Such as Portion、SuperRare、MakersPlace and Foundation.
For those who want more flexibility or control over their projects , You can consider OpenSea or Rarible Wait for the website .
The first 3 Step ： Decide how to price your artwork
In determining your NFT When the price is , Consider your experience and the price you pay for creating the work you want to sell .
Measure the market and similar artists .
Consider that you are casting 1 individual 1 My work is more than one . The general rule of thumb is , The price of your version should be equal to your NFT The price of .
Let your Genesis （ The first one ） The work becomes the only , And consider sticking to the only , Until the demand is proved . More than one is often more suitable for mature artists with large demand or practical Token, As mentioned above, ordinary concert tickets .
Think about it ETH The price of . Although there is a saying in the world of Ethereum ：”1ETH=1ETH”, But there's no denying it ,NFT The market as a whole follows ETH In the footsteps of . With ETH When prices rise or the market is particularly unstable , The market tends to slow down . This can lead to many transactions on the blockchain , Make block space more difficult to obtain , And lead to higher “Gas cost ”, We will introduce .
The first 4 Step ： Auction or cash sale ？
Although some markets strictly offer to create and sell by auction NFT The option to , But other markets allow more choices , When choosing these two ways, consider your potential buyers and your own reason .
top NFT An overview of the market
There are many NFT market , In view of the space for rapid development , It seems that there will be more every week NFT The market appears . As an artist , Before blindly casting works , You have to consider which market is best for you . top NFT The market is for creators to sell non forgeable tokens , Maybe in how they run their sales , Who is allowed to sell , It even operates differently on different blockchains , So before you pay for gas to cast your work , Be sure to observe carefully .
From the artist's point of view ,NFT One of the most concerned benefits is that they can get royalties from the resale of their works .
NFT Not only allow creators to monetize their works in the primary market , And some blockchains , Like Ethereum , By integrating royalties , send NFT Further more , That is, every time the creator's work is purchased in the secondary market , Will pay royalties . It means , as long as NFT Change hands in the secondary market , Artists will get a certain percentage in each transaction , And it's permanent .
This is a huge revolutionary approach , Can help creative industries with broken royalty systems . Many artists , Especially musicians , Due to lack of transparency , Not all royalties are collected , Or because the song is not registered correctly , Or because they're still unclaimed , It belongs to the publishing company .
Suppose the upcoming artist “X “ With 0.1ETH Sell their creative works to buyers at a price of “X”. The artist “X “ Then it became a well-known name , And continue to 1ETH Sell their works at a price . For artists “X “ The demand for creative works has risen sharply , buyers “X “ Plan to 10ETH Sell the work to the buyer at a price “Y”. In the traditional form , The artist didn't take anything , Just happy that someone attaches so much importance to their art . Although some laws have been thrown out , such as “ The arts act ”, just as Hyperallergic Pointed out ,” If you pass , The bill will require the sale of all goods at auction worth more than 5000 Dollars for art 5% Royalty of （ The maximum royalty payment limit is 35000 dollar ）. The act only applies to auction houses with annual sales of more than $1 million .” But such a law has not yet been passed . Fortunately, , You can write royalties into smart contracts !
image Portion Such a platform encourages artists to create high-quality works , And recognized by the market and collectors , So all original artists will continue to get 11% Royalties as Portion Token Reward （ Similar to the royalty system of the traditional art market ）. This is the remaining reward every time the work is resold in the secondary market .
The etheric fang Gas Cost explanation
Once you confirm your first transaction on Ethereum main network , Yours MetaMask Will prompt you “ signed “ Your wallet , To confirm that you want to pay Gas Charge to edit the blockchain .
According to the documentation of Ethereum network ,”Gas A unit that measures the amount of computation required to perform a specific operation on the Ethereum network . Because every Ethereum transaction requires computing resources to execute , So every transaction requires a fee .Gas It refers to the cost of successful transaction on Ethereum ”.
Here are some useful tools , Can understand and visualize Gas And block trading
→ Etherscan： Ethereum's block browser and analysis platform , It is a decentralized smart contract platform .
→ Gas tracker： One that optimizes your Gas Multi in one tool for cost .
→TxStreet： A cryptocurrency （ The currency 、 The etheric workshop etc. ） Visualization tool for blockchain real-time transactions .
How to sell my NFT art
stay NFT One day in the market is in Africa NFT A year in the world . You won't be able to keep up with , You will feel FOMO. To move forward .
Unlike physical works of art and collections ,NFT It exists in a basically frictionless market . A fragile work of art across the Atlantic from MET The costs and risks of moving to the Louvre are astronomical , But for encryption art , You just need a little ETH And click a few buttons .
Once you've finished creating your NFT The process of art , You should ask NFT The community promotes it , And contact potential collectors . stay NFTs There is a very strong community around , Artists are online （ and Metaverse） The community is becoming more collaborative and creative in supporting each other's works of art . Social media is the preferred marketing tool ,Twitter、Discord、Telegram、Instagram、Reddit and Clubhouse Than Facebook、Linkedin Or other social media platforms . Don't forget to see Decentraland and Cryptovoxels Such a virtual platform ! Spend your time building a community and supporting the people around you , And make real connections !
Cryptocurrency largely depends on human impulse to copy and belong ,NFTs Take this to a new level . There is a shareable memo to show that your community is on the same page , This is what this space needs . The first 72 Set Podcast Bankless Did a good in-depth study on the power of imitation and memo . Here are some of my favorite ：
Look at the chart below , Learn how to compete in an increasingly competitive NFT Some quick tips for effectively promoting yourself in the market .
I have to work for NFT Pay taxes ？
Quick answer ： Yes
NFTs Is it a fashion ？
Quick answer ： No
NFTs Is it harmful to the environment ？
Quick answer ： Yes , but …
Who are some famous NFT Creator ？
answer ：Beeple, Fvckrender, Fewocious, Lirona, BT
What is noteworthy NFT collection ？
Bored Ape Yacht Club
congratulations ！ You are becoming Metaverse Of Frida Khalo! A quick summary of the content explained in the above article , Please see the information diagram below .
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