NFT has recently become very popular and has become the talk of many people on social media. Previously, probably many people have never heard of this term and now want to find out more information about it.
It was the presence of Ghozali who made NFT popular, especially for Indonesian social media users. However, what exactly is this term and why do so many people search for it?
What is NFT
Ghozali is a young man who has made billions of rupiah in profits thanks to the business he runs, the NFT business. NFT (Non-Fungible Token) is a unique digital asset and only you own it.
In conducting transactions, NFT generally uses the ethereum blockchain technology (ETH) which is in charge of recording transactions. It can be said that this NFT represents/represents a unique valuable item with a non-replaceable exchange rate.
Examples of NFTs that can be traded are works of art such as pictures, paintings, photos, game assets, music, videos, songs, and so on. You can also convert various document assets into digital assets/NFT. Regarding the price, there is no definite price for every digital asset. The amount of the price depends on various subjective factors such as quality, level of creativity to the integrity of an artist.
In Gozali’s case, the NFT he offers is a selfie of himself that he has taken for 5 years in a row. He said that the price for the most expensive selfie that he managed to sell at Opensea was 2 ETH, equivalent to Rp. 92.3 million. NFT is a new platform for artists to sell their art. These performers can benefit from investors who value their digital assets and pay for those NFT assets.
For now, NFT is still limited to the arts, hobbies, and entertainment industries.
How NFT Works
How does NFT work to bring together digital asset owners and investors? The recent popularity of NFT on social media has attracted the attention of many people to take advantage of the platform and sell their digital assets. According to the trend, the demand and supply of NFT is increasing every year. From data reported by DappRadar in 2022, the sales volume of NFT has reached US$25 billion or around Rp. 357 trillion.
This figure experienced a very drastic increase compared to last year and even reached 270 times. In 2022, sales volume was only recorded at 95 million US dollars or around Rp. 1.3 trillion.
Then, how is the process of selling and buying this digital asset? NFT is part of blockchain technology that allows confidential data transfer through an encryption scheme. This scheme is able to convert information data into a secret code before being sent. This causes the data to be untraceable by other users who do not have the data.
There is a lot of data on the blockchain, including cryptocurrencies namely Ethereum, Bitcoin and other currencies. Over time, the form of data in this system has developed, one of which is the form of data in the form of an NFT digital certificate.
This NFT digital certificate will be embedded in various digital assets such as photos, images, videos, and various other digital works of art. Because it already has a certificate, the digital asset cannot be shared with other social media, except by the original owner. So, this digital asset must be very exclusive and cannot be duplicated arbitrarily by others.
In short, these digital certificates can function like copyrights and guarantee the authenticity of a digital asset. There is only one person who has the original version that comes with a digital certificate. Reporting from The Verge, it turns out that NFT was first used in a blockchain game called Cryptokitties in 2022.
In this game, users can raise and adopt a digital cat. This digital cat has an identity in the form of a token to show ownership of the digital cat. From how NFT works, you can find out why digital asset prices are soaring. This is because there is no domination or control over digital asset trading schemes.
Difference between NFT and Crypto
Is NFT the same as Crypto? These two things are related, but that does not mean they have the same meaning and meaning. Non-Fungible Tokens are contained in the blockchain which functions as a means to record, verify ownership and provide facilities for buying and selling transactions. Crypto, is a currency that is also available on the blockchain. However, this cryptocurrency is not unique, the bitcoin cryptocurrency has the same value as other bitcoins.
One can sell and buy bitcoins because they are of the same value. However, this is not the case with NFTs which are unique and do not have the same value. This is the basic difference between the two.
How to Buy and Sell NFT
The case of selling Ghozali’s selfie photos which reached tens of millions of rupiah made many people to do the same thing. Are you also interested in selling digital assets?
The way to sell NFT as Ghozali did is to use OpenSea. OpenSea is a marketplace or digital market that is able to bring together sellers (collectors) and buyers (investors). Simply put, OpenSea is similar to e-commerce which makes buying and selling transactions online.
Today, OpenSea has more than 300,000 users and has more than 30 million NFT listings. In general, transactions that take place on OpenSea use Ethereum.. In order to make transactions on OpenSea, you must first create an account. However, before you can create an account, you will also need to create and have a digital wallet for cryptocurrencies.
This digital wallet is just like the digital wallet you use every day. However, the currency used is different. The function of this digital wallet is to convert your currency into crypto currency. So, you can make buying and selling transactions on OpenSea.
How to Create a MetaMask Account
There are various types of digital wallets that you can create, one of which is MetaMask.
Here is how to create a MetaMask account
- Download the MetaMask application on a smartphone or on a computer device
- Once the app is installed, create an account by clicking on the “create new wallet” option
- You will see a dialog containing terms and conditions. Read the terms and click “I agree”
- Create a password for your account by creating a minimum of 8 characters which is a combination of letters and numbers. When finished, click create password
- You are required to perform two-factor verification and authentication which makes the account security level higher
- Arrange 12 words in the blank box to confirm the user’s secret recovery phrase
- When finished, click complete backup
- Done, you now have a MetaMask account
How to Create an OpenSea Account
Now, you have a digital wallet which is very important for trading NFT.
You also need to create an OpenSea account to make NFT transactions. Here are the steps you have to do
- Visit the OpenSea site, you can open it on a computer or mobile device. Use the same device that you used to create the MetaMask digital wallet.
- Select the “create account” option and connect it to your digital wallet, MetaMask
- If you are using a computer, enable the MetaMask extension on Google Chrome
- Click the “connect wallet” option to connect the digital wallet with OpenSea
- Click the “account” option and select the “profile” option to set up your profile
- Create a username, email address and other account information to create an OpenSea account then click “Save”
- Go to the email address you registered with and view the email from OpenSea to verify
How to Sell NFT on OpenSea
- Make sure you are logged into the OpenSea account you created earlier
- Select the “Sell” menu to start selling NFT
- Select the NFT type and set the selling price whether it is fixed price or auction price.
- If you choose to conduct an auction, then enter the initial price, price threshold to the duration of the sale
- After the settings are complete, click complete listing
- On the first sale, you must verify your wallet by completing two transactions. The first transaction to initialize the account for sales and the second to give access to OpenSea
- After paying, there will be a confirmation regarding the sale and the NFT post you want to sell
- You can see what digital assets you are selling through the Activity column on the left
How to Buy Digital Assets on OpenSea
- Connect a digital wallet account to OpenSea, the method is the same as described in how to sell NFT
- Log in to your OpenSea account and go to the Explore tab to view the OpenSea start page
- You can find various digital assets, if you are interested in buying them then select the “place bid” option and enter your bid price in ethereum (for auction schemes)
- Wait until the auction duration is over, if you manage to win the auction then click the “Checkout:
- Make payments using a digital wallet
- If you buy NFT using a direct selling scheme, you can immediately click “buy now” and make a payment
Why You Buy NFT
There are various types of NFT and even the most expensive NFT purchased by investors. One of the most expensive NFT purchases is The Merge which is a work of art created by Mr. This digital asset was sold for 91.8 million US dollars or equivalent to Rp. 1.31 trillion.
Then why do people buy NFT and why should you buy NFT?
There are several reasons why people buy this digital asset, here are some of them
- Unique and there is only one digital asset and has no exchange value so it is exclusive
- On the rise and discussed by many people around the world
- All transactions that take place are clearly tracked
- The production is limited so it has a high price
- Identity can be traced so as to minimize crime
How, have you understood the various information related to Non-Fungible Tokens?
Before deciding to sell or buy a digital asset, make sure you fully understand the world you are about to enter. Do not be tempted by popularity alone so that you can not enjoy the benefits in the long run.
Create a digital asset that is unique and valuable, so that other people want to buy the digital asset.
