It all started with ERC-721. The proposition that shook up the Ethereum blockchain, and rocked the world of crypto.
Since then, the use of non-fungible tokens (NFTs) has exploded. These unique, indivisible, and irreplaceable tokens ushered in a wide variety of use cases for cryptocurrency. Crypto owners could use NFTs to represent digital assets, such as collectibles, artwork, and even real estate. And it’s not uncommon to hear of an NFT being auctioned off for millions.
You may pay a pretty Ether to get your hands on a popular NFT, but how much would it cost if you made one yourself? Is it as simple as uploading a gif to the Internet? We’ll like all things crypto-related, yes…and no.
Keep scrolling to discover the true costs of creating an NFT along with ideas on what you can do with your soon-to-be minted artwork.
Creating an NFT, also known as “minting”, is the process of publishing your digital asset as a unique token on a particular blockchain. A digital asset could be anything from artwork, a video file, a gif, or a representation of an item in the real world.
Minting is what lends a standard of authenticity to an NFT; making it more than just a simple screenshot. Minted tokens are non-fungible, meaning that they cannot be reproduced, divided, or replaced by a similar token. NFTs are literally one-of-a-kind.
The actual process of minting your NFT is not as difficult as it sounds.
If you have steps one and two done, the actual process of minting your NFT is relatively quick and easy. But it all depends on one thing: transaction fees.
The cost of making an NFT depends on the platform you use and the digital asset you are selling. Fees may vary depending on file size and will definitely vary from platform to platform.
Most platforms require you to pay a transaction fee (known as “gas” on the Ethereum network) before minting your work. This is heavily dependent on network traffic. Fees could sharply rise during congested times of the day, which makes putting a cost on creating an NFT a difficult challenge. One source suggests that gas fees could range anywhere from under $1 to $1000. This leaves creators struggling to decide how to accurately price their work; not knowing what the transaction fee will be until they begin the minting process.
Even after transaction fees are paid up and your work is now live, there are still more costs that may be incurred. Some platforms charge a monthly fee to host your work until it’s sold. Other platforms will take a cut of your earnings. These are all things to consider when researching your NFT hosting site.
But there could be an easier, cheaper way to do it. OpenSea and Mintable have moved to completely zero transaction fees for creators.
Other platforms offer lazy minting, allowing you to leave your art off-chain until a purchase is made. At this point, any transaction fees are paid by the buyer.
While lazy minting is free and easy to implement. Some platforms will exert a level of ownership over your NFT until it’s sold. For instance, Rarible will not allow you to display lazy minted NFTs in your personal collection. Rather, they live in the wider Rarible network until sold. Also, the additional transaction fees may be a shock for an unsuspecting buyer.
Before you step into the realm of digital art generation and ownership, there are a few things to consider beyond the cost to start.
Do some research and find a platform that meets your needs. Just because it’s cheap doesn’t necessarily mean your NFT will be in front of the right buyers.
Congrats on minting your first NFT! Most assume that you’ll probably want to sell it. But there are still plenty of other things you can do before auctioning off your work.
As you can see the cost to create your NFT is a bit complicated. But it can be done without breaking the bank. And with Ethereum moving to a proof of stake model in the near future, we can expect gas fees to be not as volatile as they are now.
Once you’ve built up your collection of freshly minted NFTs, why not show them off? Download the NFT TV app for free today, and discover all the ways you can display your work.
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