Generation Methods and Practical Guide for NFT

Preliminary Note: This article is lengthy and covers specialized content.

Digital artworks, collectibles, game items, and other virtual assets can be transformed into non-fungible tokens (NFTs). The generation of NFTs is not overly complex, but to understand network fees and token valuation, one must first grasp the basic knowledge of distributed ledgers and the operational principles of the cryptocurrency ecosystem. Selecting the appropriate underlying network and trading platform is a prerequisite for issuing and trading NFTs.

Understanding the Essence of NFTs

Non-fungible tokens are digital certificates that represent ownership of unique items in virtual space. They are stored on a decentralized ledger, which anyone can verify for integrity, making them difficult to tamper with, replicate, or forge. NFTs open up new monetization channels for content creators and drive innovation and development in the creative industry.

Main Application Areas of NFTs

This technology is being explored and applied in multiple industries, covering the following main directions:

Art Creation Field

Digital paintings, interactive installations, and AI-generated visual works can all be converted into NFT format. This allows artists to generate, sell, and track their digital creations.

Audio-Visual Content

Movies, music videos, sports live broadcasts, etc. can all be issued in the form of NFTs. Content creators can leverage this to reach a global audience and achieve direct monetization of their content.

Music and Sound Products

Composers and music producers can turn their works into NFTs. This model allows creatives to bypass intermediaries and sell singles, albums, and concert tickets directly to fans. Artists can even increase the value of their works through limited releases.

game assets and collectibles

NFTs can represent collectible elements such as digital cards, virtual pets, or in-game equipment. Users can track their scarcity and trade them just like physical collectibles. Common game-related NFTs include game tokens, character avatars, weapons, armor, and skins.

Identity Requirements for NFT Creators

Due to the open and decentralized nature of distributed technology, almost anyone with internet access can create NFTs. This democratization of technology allows artists, musicians, game developers, and others to participate in NFT experiments. However, the prerequisite is to learn the basics: creating NFTs requires an understanding of how the network operates and the token generation process.

Specific Steps for NFT Generation

Step 1: Determine the network infrastructure

Choose a suitable underlying network for issuing NFTs. In addition to Ethereum, BNB Smart Chain, Cardano, Solana, EOS, and others provide support. Before making a choice, research the technical requirements, fee standards, and compatible wallet lists of each platform. The selected network will permanently record your NFT information, so the decision must be made cautiously. Once issued, the network cannot be changed.

Step 2: Prepare a digital wallet and inject funds

Deploy a cryptocurrency wallet compatible with the target network to manage NFTs and digital assets. Safeguard private keys and mnemonic phrases in a secure location: losing these credentials means permanent loss of access to accounts and assets. At the same time, purchase the native coin of the network to pay for transaction verification fees (i.e., “газ”). This purchase can be completed through a cryptocurrency exchange or the built-in features of the wallet.

Step 3: Select the appropriate NFT platform

Look for NFT creation platforms that support the network and are compatible with your wallet. There are many options available on the market, making it easy to find the right tools. Many platforms combine both creation and sales functions.

Step 4: Execute the NFT generation process

The interfaces and generation steps of various NFT platforms slightly differ, so it's essential to familiarize yourself with the target platform in advance. Generally speaking, the generation process on most platforms includes:

1. Wallet Connection: Locate the wallet connection entry on the NFT platform.

2. Create Menu: Open the platform and find the NFT generation tab, where you can usually upload media files, adjust NFT parameters, and input supplementary information.

3. Content Creation: The media source of an NFT depends on the type of asset. Digital art should be created using professional drawing software, illustration tools, or animation platforms. 3D artists can add textures and materials using 3D modeling software before exporting. Photographers refine their works through image editors. Creatives can also use generative AI to create NFT art through text prompts. Ensure to choose compatible formats: JPG, PNG for flat works, GLB for 3D models.

4. File Upload: Load images, audio, video, or other media onto the platform.

5. Information Completion: Enter the NFT title and description. Additional attributes such as exclusive content rights or community privileges (e.g., access to teaching videos or private discussion groups) can be added. Creators often set a limit on the quantity issued, but it may vary depending on the situation.

6. Token Generation: After confirming all information and parameter settings (including network selection), click the generate button. The platform will process the request and mint the token.

Step 5: Publish Sales Information

Newly generated NFTs will not be automatically listed. If you wish to sell, you need to publish a sales announcement on the platform, set a price, and other trading conditions. This step is not mandatory but helps with promotion and monetization.

Cost Composition of NFT Generation

Creating an NFT involves expenses that vary based on the chosen network. First, there is a network verification fee, which is settled in the native currency of that network and fluctuates with network load and market demand. Some NFT platforms also charge creators, which could be a fixed amount or a percentage of the sale price. Platform fees may apply when tokens are sold. Additionally, NFT holders may face storage costs, just like collectors pay for the storage of physical artworks. Therefore, when planning the creation of an NFT, it is important to consider hosting and storage expenses.

Estimating Reasonable Prices for NFTs

The value of a token is influenced by its scarcity, practical application, creator reputation, visual appeal, marketing strength, and community engagement. It can be assessed through the following steps:

First, evaluate the uniqueness of the token and its functionality within the virtual ecosystem. Second, compare it with similar tokens and study market trends. You can refer to the floor prices of similar series to determine a reasonable competitive starting price. It is important to recognize that NFT pricing is both an art and a science – adjust flexibly based on user feedback and market conditions. Communicate and learn from other NFT creators. There are many enthusiasts in the crypto community willing to share their experiences.

Intellectual Property Protection and Anti-Piracy

Copyright protection for NFTs is the same as for other creative works. Unauthorized use of others' works can lead to legal consequences. Before issuing an NFT, be sure to have the rights to use the content involved. Do not take risks—only tokenize after obtaining authorization. Either use your own creations or reach an agreement with the original creator in advance. Plagiarizing others' works is both illegal and harms the creator. Respect the labor of others and always seek permission for use.

Key Points Summary

NFT technology has changed the way digital assets are verified. It allows owners to easily prove their legitimate ownership and authenticate the authenticity of assets such as images, music, or videos. As the barrier to generating NFTs continues to decrease, more and more creative workers are entering this field, learning the fundamental principles of the web and non-fungible tokens. However, successfully issuing NFTs requires not only providing high-quality assets that the market demands but also mastering pricing logic and market valuation methods.

In-depth Reading Resources

• Interpretation of Basic Concepts of NFT
• Development Trends of Virtual Space and Metaverse
• Complete Guide to Distributed Ledger Technology