The Process of Making An NFT:
For Dummies
By
Seth S. Wilens

If you’ve decided to read this testimonial on the process of creating an NFT, we should become acquainted. My name is Seth Wilens and I am currently a senior majoring in marketing and minoring in digital marketing. I grew up in a small town in Massachusetts called Winchester, where I lived for 18 years and graduated from Winchester High School. I committed to Champlain College and have been studying here since 2018, where I have learned the ins and outs of marketing and business. Thus far in my academic career, I have learned very little about the metaverse, however, my MKT-450 course has provided me with much insight into this new digital age that is worth exploring. If it was up to me, I’d say writing a paper about how to create an NFT would be boring, but nonetheless here we are. I want my readers to treat this as both an informative and educational understanding of the process behind making and selling NFTs, but also as a diary containing opinions about the process from a typical 22 year old who has no previous knowledge of the metaverse. Growing to learn and learning to grow are core values of mine, so if you’re ready to journey through such a process of creating NFTs, let’s begin!

The Metaverse. What even is it? Who created it? Does it smell? (lol). Well put it this way, “mentally replace the phrase ‘the metaverse’ in a sentence with ‘cyberspace’. Ninety percent of the time, the meaning won’t substantially change. That’s because the term doesn’t really refer to any one specific type of technology, but rather a broad (and often speculative) shift in how we interact with technology… ‘the metaverse’ can include virtual reality–characterized by persistent virtual worlds that continue to exist even when you’re not playing–as well as augmented reality that combines aspects of the digital and physical worlds. However, it doesn’t require that those spaces be exclusively accessed via VR or AR. Virtual worlds–such as aspects of Fortnite that can be accessed through PCs, game consoles, and even phones–have started referring to themselves as ‘the metaverse’” (Ravenscroft, 2022). According to the Oxford Dictionary, the metaverse is defined as:

Metaverse
/ˈmedəˌvərs/
A virtual-reality space in which users can interact with a computer-generated environment and other users.

In theory, when we refer to the metaverse we aren’t referring to a single entity, it’s not a company or a videogame, the metaverse is quite literally a digital platform…for virtually anything. Now some of the key elements to the metaverse include: blockchain-based operations, the use of virtual lands, immersive experiences via AR and VR, and the wonderful world of NFTs.

If you asked the person next to you what the heck a Non-Fungible Token is, they may question what language you’re speaking. Process of elimination may conclude that it’s food or maybe some sort of currency in a video game (which isn’t far off!), but it is still a gray area for many like-minded young adults such as myself. For those alike, online payments are something most of if not all of us with a debit/credit card have done before. The ability to use a mobile device and purchase music, games, tangible items etc, is something that isn’t exactly new to us since the beginning of the digital age and we utilize it daily. Although we still worry from time to time that the online purchases, we make are safe in terms of the transaction process, we are still adept at plugging in our card number and auto filling our address to buy anything and everything online. But the truth is, how similar is this to the metaverse? Is it as simple as purchasing something online or is there more to this new digital platform that isn’t as obvious?

According to the article How Do Payments Work in The Metaverse?, there is much to know about how the metaverse handles currency and how we should expect to make payments while entering the metaverse. To begin, I think it would be important to define and explain a few terms that reoccur when talking about the metaverse and money, the top being NFTs. Good ol’ NFTs are definitely something you heard of when anyone talks about the metaverse, but what even are they exactly? Being an acronym, NFTs are short for Non-Fungible Tokens. Ian Dean of Creative Bloq explains that NFTs “can represent any form of digital file, whether that’s a jpeg of a piece of art, a video, or even real estate. Turning these files into ‘tokens’ and securing them on a blockchain make buying, selling and trading these files efficient and reduce fraud”. If you’re like me, this still sounds confusing. My take is that this all means that it’s a way to just sell digital art. Can’t anyone just draw a picture online and sell it, why are some NFTs going for millions of dollars, where is the value? Well, you need to first understand that the metaverse is a blockchain-based virtual economy. Meaning that many metaverse platforms such as Decentraland or HyperVerse, each have their own special virtual economy, run by blockchain, smart contracts, and cryptocurrencies. The article makes a good comparison to the differences between countries, “this is similar to how each country has its rules and regulations, particular economy, and local fiat currency”. So, to circle back to NFTs, they become a special type of “crypto asset based on smart contracts that are completely unique, indestructible, and can only have a single owner”. The cool thing about NFTs is that they are a lot like a designer bag. For example, The Birkin is a designer bag made by Hermès and styles can range from $8,500 to over $450,000 (like the Diamond Himalaya Birkin). These bags not only cost an arm and a leg, but they can actually increase in value overtime and are even considered to be a better investment than gold or the stock market depending on leather, hardware, and demand. So essentially this answers the question of where the value comes from NFTs and why we see people spend beaucoup bucks for a digital file of art. These non-fungible tokens can be used for anything from items in the metaverse to ownership of real physical assets. To harp on what cryptocurrency is, we are looking basically at a digital currency. Not like the coins you can collect in a game to buy a new shield for your player, but rather an alternative form of payment using encryption algorithms. A recent exploration of cryptocurrency has become something called BNPL or “buy now, pay later”, where it allows individuals to spread the cost of what they buy over a frame of time, interest-free. Although this hasn’t fully been integrated into the metaverse economy and has been primarily used for physical goods, it would benefit greatly for users “to finance their purchases of virtual assets over time”.

Deciding The Artwork to be Created

… Now that I’ve bored you with my spiel on NFTs, let’s jump into the next phase of my journey. Choosing the artwork to be created was relatively easy, mainly because I preemptively knew I wanted to do something trippy or colorful. I decided that I would create 4 NFTs that represented me as an artist and an individual. I ended up using a program called Sketchbook (costs $2.99 on the app store) and used my iPad and an apple pencil to create my designs. Sketchbook is a pretty easy platform to use if you’re a beginner digital artist like myself, its user interface is easy to navigate and it has guides on how to use each feature. After some practice, I finally birthed my collection.

Introducing the “That’s Trippy” campaign. To break it down, this campaign contains four NFTs that are colorful and trippy in nature and highlight parts about me:

“Trippy Butterfly”
This NFT consists of a male birdwing butterfly species layered over a neutral background with a honey like motif. I wanted to highlight my love for entomology, specifically lepidoptera which is the study of butterflies. Ever since an early age I have been fascinated by insects and have long studied them. I felt that utilizing a birdwing butterfly species also represents my home country Cambodia, as it is a native species.

“Trippy Weed Dog”
For this NFT I wanted to create something more humorous. I liked the juxtaposition of animals doing human things, so I decided to depict a dog smoking a joint. The dog shows visible signs of THC ingestion and is pictured in front of foil balloon letters that spell out “Weed”. This is more or a less a representation of my love for dogs.

“Trippy Balloon Animal”
I am a massive lover of artist Jeff Koons, so I wanted to pay homage to his work with this piece. In this NFT, I recreated his “balloon dog” piece and juxtaposed it over a trippy background. I was inspired to render it in a neo-traditional style to make it my own and also display my passion for tattoos as well.

“Trippy Fruit Bowl”
This little shop of horrors represents my love for food. In this NFT you see a metal bowl with a pineapple, bananas, grapes, an apple, and an orange inside. The background is mainly blue but is bordered with cartoon-like blood dripping around the bowl of fruit. This piece was more imaginative and was a way for me to combine both my love of food and my love for horror movies.

Choosing A Blockchain

To fully understand what blockchain is, I did extensive research and found the article sourced by OodlesBlockChain to best define what it is. The article goes in depth about what exactly a blockchain is and ultimately how it’s used in the metaverse: “A computerized ledger of all cryptocurrency transactions is called a blockchain. It is constantly expanding as new records are added for completed blocks. Each block includes transaction information, a timestamp, and a cryptographic hash of the previous block” (Blockchain.Oodles, 2022). In layman’s terms, a blockchain is the currency we use to sell and buy things in the metaverse. There are many different blockchains! Three important ones to highlight:

Ethereum

Ethereum is a decentralized blockchain platform that establishes a peer-to-peer network that securely executes and verifies application code, called smart contracts. Smart contracts allow participants to transact with each other without a trusted central authority. Transaction records are immutable, verifiable, and securely distributed across the network, giving participants full ownership and visibility into transaction data. Transactions are sent from and received by user-created Ethereum accounts. A sender must sign transactions and spend Ether, Ethereum’s native cryptocurrency, as a cost of processing transactions on the network. [Guardeño, David Arroyo, et al. “Blockchain.” Amazon, CSIC, Consejo Superior De Investigaciones Científicas, 2019, https://aws.amazon.com/blockchain/what-is-ethereum/]

Solana

Solana is a blockchain platform designed to host decentralized, scalable applications. Solana is much faster in terms of the number of transactions it can process and has significantly lower transaction fees than rival blockchains like Ethereum. The cryptocurrency that runs on the Solana blockchain is referred to as SOL. [Picardo, Elvis. “What Is Solana (Sol) and How Does Sol Crypto Work?” Investopedia, Investopedia, 20 Oct. 2022, https://www.investopedia.com/solana-5210472]

Flow

The flow blockchain was designed to support games and consumer applications, and can potentially process the transactions of millions of active users. Games, collectibles, and related apps can be supported by the flow blockchain.

By supporting interaction among smart contracts, the flow blockchain is positioned to allow for a large number of applications on its platform, much like the ethereum blockchain. [Rosenberg, Eric. “What You Need to Know about Flow.” The Balance, The Balance, 31 July 2022, https://www.thebalancemoney.com/flow-explained-5323569]

For my own purposes, I chose to use Ethereum. I found it’s the most popular blockchain and is commonly used between different NFT wallets (we’ll get into NFT wallets in a second don’t worry!). Since I am setting out to sell my artwork, depending on the platform you can expect to invest or buy Ethereum in order to sell your work. As of today, 1 Ether is worth $1,250.25 to put things in perspective.

Setting Up an NFT Wallet

So, the next step in this process is to set up an NFT Wallet. The name is quite literally what it is, it’s a digital wallet where you can store currency when buying or selling NFTs. This is where in our case we would store Ethereum in our NFT wallet. So what kind of NFT wallets are out there you might ask, well there are many different wallets to choose from, varying in price and abilities, so it comes down to what makes sense for the scope of your project. From what I’ve researched, it is imperative to pay attention to a few things when choosing a wallet. The first thing to be aware of is pricing. Aside from some platforms requiring a fee to sign-up and use their platform, the main thing to look out for is something called Crypto Gas [Frankenfield, Jake. “Gas (Ethereum): How Gas Fees Work on the Ethereum Blockchain.” Investopedia, Investopedia, 21 Nov. 2022, https://www.investopedia.com/terms/g/gas-ethereum.asp]. Crypto gas is the fee required to successfully conduct a transaction or execute a contract on the Ethereum blockchain platform. Think of it as the taxes part to online shopping, crypto gas are like those extra fees after checking out. NFT wallet platforms handle crypto gas differently but be prepared to owe a gratuity if a sale is made. The next aspect to NFT wallets to be aware of is minting. [SoFi. “What Does Minting an NFT Mean? How Does It Work?” SoFi, SoFi, 19 Sept. 2022, https://www.sofi.com/learn/content/what-is-nft-minting/]  Minting an NFT, or non-fungible token, is publishing a unique digital asset on a blockchain so that it can be bought, sold, and traded. Minting is pretty much the process of making your NFT unable to be duplicated or stolen and turning it into an original digital piece of artwork. Like crypto gas, this is something that can be pricey with different platforms, but there are free options! To provide some examples, here are the top three NFT wallet platforms to look into:

MetaMask 

MetaMask is a global community of developers and designers dedicated to making the world a better place with blockchain technology. Our mission is to democratize access to the decentralized web, and through this mission, to transform the internet and world economy to one that empowers individuals through interactions based on consent, privacy, and free association. [“The Crypto Wallet for Defi, Web3 Dapps and Nfts.” MetaMask, https://metamask.io/ ]

Blockchains used:

  • Ethereum
  • Binance Smart Chain (BNB)

Coinbase 

We are building the crypto economy – a more fair, accessible, efficient, and transparent financial system enabled by crypto. We started in 2012 with the radical idea that anyone, anywhere, should be able to easily and securely send and receive Bitcoin. Today, we offer a trusted and easy-to-use platform for accessing the broader crypto economy.

We join our amazingly talented colleagues in the wider ConsenSys product family in working to deliver a more fair, free and decentralized internet-based economy for all. [Coinbase – Buy and Sell Bitcoin, Ethereum, and More with Trust. https://www.coinbase.com/]

Blockchains used:

  • Ethereum
  • Avalanche C-Chain
  • Polygon network

Ledger 

Secure your NFT assets with the most trusted hardware wallet. Cold storage wallets are typically encrypted devices that store users’ NFT assets offline, providing a layer of security against the evolving threats emerging from being connected to the Internet. [Support – Ledger Support. https://support.ledger.com/hc/en-us/categories/4404369571601-Support]

Blockchains used:

  • Bitcoin
  • Ethereum
  • Ripple
  • Binance Coin

I found that MetaMask was the best fit for my needs. MetaMask is simple to use by nature and takes little to no time to set up. I also decided to go with MetaMask based on the fact they utilize Ethereum which is ultimately the blockchain I knew I wanted to use. The process of getting MetaMask was completely free, and it was even easier linking it to the NFT marketplace I ended up using.

Choosing an NFT Marketplace

Well…looks like we have pretty much reached the last train stop to our NFT journey, choosing an NFT marketplace to sell our NFT! This section is a lot like the other steps, there are many different marketplaces/platforms for you to choose from, it just comes down to again what makes sense for the scope of your project. So here are some marketplaces to explore:

OpenSea

At OpenSea, we’re excited about a brand-new type of digital good called a non-fungible token, or NFT. NFTs have exciting new properties: they’re unique, provably scarce, tradeable, and usable across multiple applications. Just like physical goods, you can do whatever you want with them! You could throw them in the trash, gift them to a friend across the world, or go sell them on an open marketplace. But unlike physical goods, they’re armed with all the programmability of digital goods.

A core part of our vision is that open protocols like Ethereum and interoperable standards like ERC-721 and ERC-1155 will enable vibrant new economies. We’re building tools that allow consumers to trade their items freely, creators to launch new digital works, and developers to build rich, integrated marketplaces for their digital items. [“Learn Center: NFT Guides and Education.” OpenSea, https://opensea.io/learn]

NFT Wallets used:

  • Ledger
  • Trezor
  • Coinbase Wallet
  • MetaMask
  • Trust Wallet

Pros:

  • The commission rates are very competitive
  • No other marketplace offers the same level of security for every transaction
  • It has the biggest selection of NFT styles of any platform today
  • OpenSea is one of the only marketplaces with a mobile app, which launched in October 2021

Cons:

  • You need to have an Ethereum digital wallet to use the OpenSea platform, and you can only pay using cryptocurrency
  • Minting fees are high, so the buyer must pay more to cover the costs

Solanart 11

The first marketplace on Solana to buy, trade and sell non-fungible tokens (NFTs). Chat on chain with buyers/sellers, launch a project with our launchpad or just explore.

On the Solana blockchain, Solanart is an open marketplace for NFTs. Simply said, it’s a marketplace where artists can freely list their collections, and anyone may purchase or sell NFTs made in Solana. Opensea, which runs on the same open marketplace model as Solanart, is the most direct comparison. [Solanart. https://solanart.io/collections]

NFT Wallets used:

  • Phantom
  • Solflare
  • Sollet

Pros:

  • The price history feature of NFT collections is a good tool to look at how well the overall collection has performed over its lifetime. I haven’t seen any other platforms offer this feature for collections as a whole

Cons:

  • Smaller selection of NFTs compared to other marketplaces. There are quite a few NFT collections on Solanart that are not recognized across other Solana platforms, meaning you can’t sell them anywhere except Solanart

Axie Infinity 12

Axie Infinity is a non-fungible token-based online video game developed by Vietnamese studio Sky Mavis, known for its in-game economy which uses Ethereum-based cryptocurrencies. Players of Axie Infinity collect and mint NFTs which represent axolotl-inspired digital pets known as Axies. [Axie Infinity,https://axieinfinity.com/]

NFT Wallets used:

  • Ronin Wallet

Pros:

  • Buy and sell gaming NFTs
  • Earn cryptocurrency rewards
  • No buyer’s fee

Cons:

  • Only offers one type of NFT
  • High seller’s fee
  • Requires multiple wallets

I knew that for the NFT marketplace I wanted it had to be easy to navigate, simple in design, and I wanted to be able to track its progress. For my own project, I decided to go with OpenSea. The main feature I like about OpenSea is that they don’t charge anything until you make your first sale. This is a huge money saver as some platforms cost money to have your NFT posted for sale. Much of this price comes from minting, most platforms mint your NFT for you but at a price. With OpenSea I can have them mint and sell my NFT for free, then charge me crypto gas if a sale is made. The other features I like about OpenSea is I can adjust the price, time frame of the sale, and whether the price is fixed or negotiable.

Listing the NFT for Sale

Welcome to our final stop! All you have to do is upload and sell your NFT! Now each platform has different steps to uploading and selling your NFT so it’s important to pay attention to that aspect when exploring different NFT marketplaces. So, as I previously mentioned, I chose OpenSea to sell my four NFTs. The first thing I had to do was connect my NFT wallet (remember for this I chose MetaMask), this was relatively easy as it was a matter of copying and pasting the digital code MetaMask provides after signing up and pasting it into OpenSea. After this is done, OpenSea is able to create your account with the wallet you provide. Uploading the artwork to sell was simple, OpenSea uses a variety of file formats such as .PNG and .JPEG so you just select the file you want to upload from your laptop, and it automatically mints it for you. The rest of the information to fill out includes the title of your work, a description of your NFT and of course how much you want to sell it for.

After uploading my NFTs, I made the descriptions simple and wrote “Part of ‘That’s Trippy’ campaign” but make the description as in depth as you like! Bear in mind that descriptions do matter, remember what the scope is of your project and use the description of your NFT to your advantage. I knew I wanted viewers to know that my piece is part of a campaign/collection so use a call to action or describe the NFT in relation to what you’re trying to achieve.

Once you’ve filled out the information you need, you’re done! At this point, on OpenSea you’re able to track and see the activity surrounding your NFT. You can view how many people are looking at your account, your campaigns, your NFTs and if you set the price to negotiable, you can view how much money people are bidding on your artwork. Now remember, as exciting as it is to upload and sell your NFT you can’t just call up your best friend to buy it. Only people with the same cryptocurrency can purchase your work. In other words, I decided to use Ethereum, which means that people with Ether can buy my work as I am selling it for an amount of Ether. Unfortunately, if you want your friend to buy your NFT, they can’t just whip out their credit card and buy it, they too will need to get an NFT wallet and buy Ether.

Final Thoughts

We have finally reached the end to the journey of creating and selling NFTs. Though a tedious process, it is much simpler than I would have expected and something I see myself spending more time doing. To recap, the process is a matter of digitally creating the work you want to sell, selecting an appropriate block chain, creating an NFT wallet that works with the blockchain you want, and connecting that NFT wallet to the NFT marketplace you want to use and that works with the NFT wallet you previously created. Simple, right? I have learned a lot over these past few months and have a newfound appreciation for the metaverse. It’s a daunting platform that many of us still know very little about, but it is our future. I hope to hone in on my NFT skills as it was an eye-opening experience that has proven to be something I am much more interested in. To end this paper, I wanted to conclude the importance of taking time to explore the aspects of the metaverse. There are many MANY articles surrounding the technological advancements within the metaverse, how companies and businesses are dipping into the metaverse and using it to their advantage, and articles that explain every aspect of the metaverse in depth. The metaverse is only getting bigger, so grow with it not against it.

 

 

References

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