- Rights of NFT
- Minting and Selling of NFT
- Safety of NFT
NFTs or non-fungible tokens is a digital world of NFT art, where art could be sold digitally. Things that a user should remember before mining the first NFT are given below:
Rights of NFT
Before minting an NFT, it is important to know about NFT and the benefits that it offers. It is also important to understand that with ownership of NFT, there are no copyrights to it. Meaning that NFTs can be downloaded and used by anyone without raising any copyright issues, but only the owner could sell the NFT.
For example, the Nyan Cat, an animated GIF, was sold for $5,90,000 last year. The owner only has the ownership rights over the Nyan Cat NFT, while the creative and intellectual rights are still with the artist who made it.
The above example is a perfect case, where the ownership of the work is retrained by the artist and the original digital copy of the NFT is owned by the owner. Similarly, all NFTs will have a different set of ownership rules written by the artist who mints it. A complete record of the selling history of NFTs will be stored on the blockchain. Every time an NFT is resold, the artist who minted the NFT will receive a royalty.
Minting and Selling of NFT
Minting is a process where an item, a piece of art, a tweet, and a unique moment get authenticated on the blockchain by issuing tokens. The token released cannot be replicated and also contains the digital record of the item. For minting of an NFT, a person should select the following:
Blockchain: It is important to determine the blockchain over which NFT is to be minted, this will give information about the gas fees required to be paid for the mining of NFT. Most of the platforms are running on the Ethereum network, and the gas fee is dependent on the demand of the network and the requirement of the energy.
NFT Marketplace: In most of the platforms, an artist is required to undergo an application process before minting the NFT, also known as the vetting process. Platforms that have extensive vetting procedures tend to attract more collectors than the marketplace that doesn’t have it. A greater level of authenticity is provided to the minted token because of the identity verification process of NFT marketplaces.
Costs: It is completely based on the need of the artist, if he wants, the platform could allow it to create the NFT for free and charge the gas fee from the buyer. This type of platform is best suited for artists who plan on minting a large number of NFTs. For creators looking to develop NFT just for once, the platform charging a one-time fee is preferable.
Safety of NFT
Issues of plagiarism, fraud, identity theft, etc. can be faced by NFTs. There have been occasions where the work of other artists has been copied by imposters. There are no methods, legally or otherwise to stop this from happening, only preventive measures could be taken.
To ensure the safety of the NFT the artist will be required to use VPN when dealing with cryptocurrencies, invest in a hardware wallet or hard drive, and always keep the seed phrase and wallet address secure.
Disclaimer: The article is just to provide information and shouldn’t be considered as any financial advice. It is advisable to conduct thorough research before investing in any cryptocurrency.
Photo by – TheDigitalArtist on Pixabay