I have been receiving an abundance of questions about NFTs from enthusiastic learners on Quora, so I've decided to share them with you all here!
Why do so many people hate NFTs?
It's hard to pinpoint the exact reason, but NFTs are bad because they represent ownership of something that can't be replaced if it were stolen or lost. There is also a lot of speculation in the space about how true ICO prices will be affected when widely used and trusted "ERC-721" tokens become available and more mainstream.
That's not just lots of people hating on NFT, lots of people in the web 3 space seem to think that they're unfair for certain use cases like tokenizing your artwork, part shares in business ventures, rare memorabilia etc. Basically, anything where you don't want anyone person owning more than 1% of what is being tokenized.
- How do I make artwork into NFT?
I would recommend you resort to good old pencil and paper for this one.
Some initiatives are making it possible to turn art into crypto assets, but when you need to instantiate artwork in our digital era, there's always the tried and true methods of tracing over a traditional drawing with pencil or chalking on paper.
Just remember that tokens don't last forever; if they do, their value will eventually plummet (just like any commodity). And although the price of art has risen at incredible rates in recent decades, what would happen if people stop paying for it altogether? What does an artwork meant only for eyes matter in this paradigm? I'm not trying to be dark; my point is simply that trends can easily change - even with something as intrinsic to our civilization as art.
3- How do I make an NFT? What technology is needed?
Metaverse NFT (NFTs in our ecosystem) is similar to the ERC-721 standard on Ethereum. It call it MST (metaverse Smart Token).
Other than that, we also support tokens made according to the ERC-20 standard used on Ethereum. To make an NFT, you need a set of professional design tools, including the Metaverse full-node wallet (MVSD) and the NFT Studio.
You can also use third-party tools to design NFTs.
What are the criteria for an NFT? Can my avatar be made into an NFT?
Basically, if something has a unique identifier and can have attributes associated with it, then you can turn it into an asset. For example, real estate or medical data can be turned into an NFT. However, some assets will be easier to turn into an NFT than others. One way to tell if something can become an asset is to ask yourself if it has a unique identifier. This might seem fairly simple, but there are scenarios where you can have multiple objects that could share the same identifier, or at least how an identifier would be created for it. For example, if there are two identical apples on the table how would you tell them apart, they both have unique identifiers (they are assigned by nature) but neither is easily transportable...
So what makes an ideal candidate for an NFT? A great candidate should be unique and each one of these unique objects has some sort of identifier, so it can be tracked, transported and traded.
When describing an ideal candidate for an NFT there are three categories I like to think about:
- One of A Kind Pieces
- Authentic Originals
- First Generation Items
- Legacy Items
- Information
- The item should have some sort of unique attribute that can be attributed to it. Whether this is scarcity, uniqueness, style or, sentimental value, it should be something that makes this asset unique.
- One of a Kind: This goes hand in hand with #1 but also needs to take into account the fact that items might have multiple objects created of them (e.g., there are hundreds of Mona Lisa paintings).
- Authentic Originals: The item should be a unique object that is authentic. This might seem a bit obtuse, but there are pieces of art that have been reproduced and passed off as the originals or just hand-me-down pieces that have little to no value. In the case where the item is something completely digital, such as a song, it can be treated like an original, but if it has been copied many times, then it is more of a legacy item. First Generation-
- A first-generation object has historical value or an interesting story behind it. For example, the shirt Jim wore when he won his first championship is the first-generation item with little to no resale value. But this isn't always the case. If a first-generation item is unique enough, you can typically get higher returns on it than non-first-generation items. A good example of this is the original Twilight book by Stephanie Meyer. This book has garnered high sales, but also many counterfeits and knock-off books that have been made since its success.
- A legacy item is an item that has only sentimental value. It could be that it belonged to someone who achieved something great or was a family heirloom that holds little to no financial value. It's important to differentiate the difference between legacy items and first-generation items, as they could have similar attributes but will typically sell for different amounts because of sentimental differences.
- Information: Information assets are unique because you don't need to own the information to trade or own it. Instead, you just need access to the system that contains the information and many people can have ownership of this data with no complaints from others. The main downside of these types of assets is that they are typically non-fungible, which means that it is difficult to transfer or sell them to another person.
5- How to convert NFTs into Cash?
The best way to maximize the value of your in-game currencies when converting them into cold hard cash is by knowing their true worth and finding a reputable buyer who will pay you for them at a fair price. NFTs are the perfect example of this principle.
If you want to learn more about how to convert your first NFT into cash, go read this article published on Publis0x now!
A new way to earn money with your artwork is by creating NFTs. This article will guide you through the 4 questions that are needed for this process and answer some of the most common questions about what an NFT is, how it’s made, and how to make them into cash. I hope this has been helpful! If not, check out my post on PUBLISH0X where I go in-depth about each question answered here. Thank you so much for reading!
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