ADVANTAGES OF NFTs
For artists NFT provides a way to sell art to digital collectors. As well as associating an asset that provides value to cryptocurrency investors. NFTs are also tamper-proof and immune to modifications or fraud.
COST OF AN NFT:
The cost to mint (Create) an NFT is dependent on the price of Ethereum and could cost between $125 to $200.
DEFINITION OF MINTING:
Minting is geek speak and is the process of creating an NFT.
HOW NFTS CREATE VALUE:
An NFT is a non-fungible token, unlike bitcoin (or other cryptocurrencies) those tokens are not mutually interchangeable. This results in a digital scarcity which creates a natural value for the token.
Digital art is an investment in cryptocurrency. A digital asset like art associates value to cryptocurrency.
HOW NFT’S PROTECT AGAINST FRAUD:
The beauty of an NFT is it creates a digital certificates of ownership and authenticity. An NFT is created by code that makes each NFT unique and immutable. An NFT is held in a blockchain, which is a digital ledger of transactions.
When an NFT is created it generates a hash of the images and other files. A hash is a unique cryptographic “key” generated from the file contents. No two files with different content (or different lengths) can generate the same hash. The hash becomes the identity of the file. A fraudster who creates an NFT of the same image or file will result in a different hash. When the two hashes are compared with each other you can see which hash is the original and which is a duplicate of the original. A hacker can’t create a different file that generates the same hash.
PUBLIC AND PRIVATE KEYS:
When an NFT is minted it creates unique public and private keys, these keys provide access to the crypto wallet. The public key allows anyone to see the contents of the wallet and the private key provides access to move the NFT to other wallets. Private keys should be guarded and not shared with anyone.
SEEING A TRANSACTION ON THE BLOCKCHAIN?
Your certificate of authentication has the public blockchain key. Go to https://etherscan.io/ and enter your public key.
TRANSFER AN NFT TO A NEW OWNER
When an NFT is created it generates a public and private key. When transferring an NFT to a new owner you can give them a copy of the public and private key (not recommended) or move the NFT to a new crypto wallet. We can assist with this process.
VIEWING AN NFT:
When you create an NFT, it associates the NFT with the originator’s phone number and generates a QR code. You can scan the QR code and see the NFT image and related files.
You can also look up the NFT by going to https://etherscan.io/ and entering the public key
WHAT IS AN NFT?
An NFT is a digital asset that represents real-world objects like art, music, in-game items and videos. They are bought and sold online, with cryptocurrency.
WHAT’S A BLOCKCHAIN?
- A blockchain represents a digital record of transactions. Where individual records, called blocks, are linked together in a single list, called a chain.
- Blockchains use Smart Contracts and cryptocurrency to facilitate a transaction.