Blockchain technology works as a decentralized database that is not owned by anyone but is maintained by many participants. <\/p>\n\n\n\n
It\u2019s an entire ecosystem where your NFT and its ownership will live on. But maintaining Blockchain technology requires high energy input, and maintaining NFT platforms will result in burning large amounts of fossil fuels. This is when the “Gas Fees” come into play. It will vary depending on the blockchain ecosystem you choose to operate (as an example, Ethereum is one of the most expensive), which we will see in detail later.<\/p>\n\n\n\n
How the \u201cMinting Process\u201d Works<\/h3>\n\n\n\n NFT has some key features that allow its functionality. First, the product is assigned a token with a unique ID tagged with data that cannot be replicated. Then, the token is minted on the blockchain. Just think of it in the same sense as it would happen with a traditional metal coin. <\/p>\n\n\n\n
The owner uses a Public Key to create a transaction through a Smart Contract. This is how you prove the NFT\u2019s originality. The Smart Contract is executed or signed with a private key. Now, you can run the transaction deploying the NFT to the market, and someone can purchase it. <\/p>\n\n\n\n
If this is too much, you can check some NFT marketplaces, like OpenSea, where you can mint NFTs for free (although it will require that you have a minimum amount of cryptocurrency stored in your wallet).<\/p>\n\n\n\n
Guideline to a Successful NFT Project<\/h2>\n\n\n\n Now that you have the necessary knowledge and understanding of your product, it is time to portray some of your ideas in your first NFT. The road to a successful NFT Project has just started.<\/p>\n\n\n\n
Establish Your NFT Idea and Purpose<\/h3>\n\n\n\n The very first step is an obvious one, but one of the most important. Establish your end goal and why you want to create an NFT. <\/p>\n\n\n\n
Do you want to build a closer community? Do you want to get ready for the Metaverse? Or do you want just to sell your work in an accessible way? Keep that in mind and write down a compelling story. Establish why you are creating an NFT and why your NFT project is important. <\/p>\n\n\n\n
Successful NFT projects have clear answers and can make a narrative around them. After all, people should trust you and believe in your product. <\/p>\n\n\n\n
Once that is checked, it is time to get creative. Think about which form you are going to make your new NFT. Art, videos, and music \u2013 all of them are valid. Make clear which features your NFT will have and how they can encourage people to invest in your art. Think about how big your NFT collection would be, its randomness and rarity. <\/p>\n\n\n\n
This should be established from the beginning, and people should know and understand your goals. We will look in detail at the next point.<\/p>\n\n\n\n
Set an Ecosystem: Blockchains<\/h3>\n\n\n\n
So, your NFT idea is all done, and you know what you want to do. Now, it is time to prepare the NFT ecosystem, where it will live, where people can buy it, and how much it will cost.<\/p>\n\n\n\n
A popular ecosystem means more potential buyers, and it will be easier to build a community around it. That’s one of the reasons that many NFT projects choose to launch theirs in Ethereum. But don’t be blinded by its popularity, as it has its downsides, and one can still have a successful NFT project on other blockchains.<\/p>\n\n\n\n
The Ethereum blockchain is one of the most decentralized of all. It\u2019s more flexible and provides more security to NFT collectors in keeping in possession of their digital assets. But this comes with a cost, as it has a slower and more expensive transaction fee. <\/p>\n\n\n\n
A transaction fee can reach 0.05 ETH, which at the time of writing is $66 just to make a transaction, whereas on any other blockchain would be just cents (like on Solana). Yet, a cheap fee will allow bots to purchase large amounts of your NFT, empty your limited supply, and keep your NFT collection away from real buyers. So, your best option is to check the most suitable solution for your needs.<\/p>\n\n\n\n
Another aspect of the blockchain is its consensus mechanism, which defines how computers reach agreements. This wouldn\u2019t affect your NFT launch, but if you are interested in its ethics, there are many examples, but the most common use is Proof of Work and Proof of Stake. Ethereum was using the first one as it had shown good results working on a greater scale. Although it incurs a considerable amount of operational cost. <\/p>\n\n\n\n
Since September 2022, Ethereum has started working with Proof of Stake, which has a lesser environmental impact. Other consensus mechanisms are Delegated Proof of Stake, Proof of History, Proof of Space-Time, and Proof of Authority.<\/p>\n\n\n\n
NFT Marketplaces<\/h3>\n\n\n\n
As most projects prefer minting NFTs on the Ethereum blockchain, OpenSea became the most popular NFT marketplace. As with choosing a suitable blockchain technology, you have to implement the same thinking process for your NFT market.<\/p>\n\n\n\n
Creating a new NFT marketplace will give you more control over your NFT space, allowing creators to capture more revenue and save buyers some gas fees. But, of course, this will require someone specialized.<\/p>\n\n\n\n
NFT marketplaces have their unique set of benefits, so it\u2019s worth exploring each one of them. Some examples are: <\/p>\n\n\n\n
\nOpenSea<\/strong> – The first and most popular of all.<\/li>\n\n\n\nNifty\u2019s<\/strong> – An eco-friendly marketplace that sells NFTs done by big brands and creators. <\/li>\n\n\n\nFoundation<\/strong> – A curated NFT marketplace planning to build a new creative economy.<\/li>\n\n\n\nMakersPlace<\/strong> – An NFT marketplace for digital creators.<\/li>\n\n\n\nRarible<\/strong> – A community-driven marketplace that uses its own currency.<\/li>\n\n\n\nWAX Digital<\/strong> – An NFT marketplace that releases exclusive NFTs by global brands and artists.<\/li>\n<\/ul>\n\n\n\nThere are many more, but these are some of the popular ones. Another big aspect you should consider is that most NFT marketplaces don’t work with every cryptocurrency (a big win for Ethereum as almost every market works with it).<\/p>\n\n\n\n
Pricing<\/h3>\n\n\n\n As the NFT creator, you will have to set up their rarity, randomness, price, fixed royalties, and minting process too. <\/p>\n\n\n\n
Probably you don’t have a clear idea of how much you want people to invest in your NFT. Do previous research on this aspect too. Talk with your community, get to know your audience, and how much they are willing to spend. You can check some top NFT projects on sites like Non-fungible or Dune Analytics.<\/p>\n\n\n\n
Don’t set the initial mint price or royalties too high, or you’ll lose momentum. Collectors will not capture much value from the community that they helped to build and may deter themselves from getting your NFT. <\/p>\n\n\n\n
Keep in mind that your NFT launch won\u2019t be the only source of income. You can rely on the \u201csecondary market\u201d as sales on different NFT marketplaces can drive long-term revenue through NFT royalties. <\/p>\n\n\n\n
Set Up a Team for the Project<\/h3>\n\n\n\n Several positions must be covered in making successful NFT projects. You will need an Artist, a Software Engineer (maybe more than one), a Community Manager, and at least one Moderator. If you can take any of these roles, that’s great. But remember that this is your project, and your leadership will be crucial. Your intentions should be even more clear with your team.<\/p>\n\n\n\n
The Artist<\/h3>\n\n\n\n It will portray your art in an NFT. They will have to make a wide variety of art to keep the “uniqueness” of every NFT. As it can be very tedious to create, some NFTs projects, mostly based on images, work with a randomly generated system. <\/p>\n\n\n\n
Many NFT projects use this method as it saves a lot of time in creating thousands of unique images for your NFT collection. Then, the Artist should only create different layers and let the randomness do its magic.<\/p>\n\n\n\n
Software Engineer<\/h3>\n\n\n\n It is another cornerstone of your NFT project. You need people who understand how to develop smart contracts and coding. You also need a website or blog to host all the information about your project. This is where you will write down your story, team members, vision on future plans, and roadmap, and allow people to mint your NFT.<\/p>\n\n\n\n