March 16, 2022

What are NFTs

  1. What are NFTs?NFT stands for Non-Fungible Token. NFTs are digital assets stored on a blockchain, authenticating proof of ownership. Because NFTs are stored on a blockchain, transaction history is fully transparent and record of ownership is permanent. NFTs can be anything digital (art, music, tickets, digital IDs), but most of the present enthusiasm is around unique digital art.How Do NFTs Actually Work?At a high level, NFTs are created, traded, and stored onto a blockchain (in most cases on Ethereum). Blockchain is simply an open database that can make any transaction transparent, secure, and without the need of any 3rd party verification. Blockchain technology’s big breakthrough allows for an open digital economy without any central gatekeepers. While NFTs are created and stored on a blockchain, online marketplaces such as OpenSea, Rarible and others help facilitate discovery, purchasing, and selling of NFTs. In order to purchase NFTs on such marketplaces, you will need to have a digital wallet.Why are NFTs Important?Be it a meme, a priceless work of art, a music album, or even a car, NFTs cement ownership rights. This key aspect eliminates the biggest challenge creators have ever faced historically – duplication and lack of authentication. We believe NFTs are a fundamental technological breakthrough that will drive a creator renaissance.What is a wallet?A cryptocurrency wallet is a digital wallet that allows users to manage, use and trade their cryptocurrencies, while also serving as a storage and management tool for your NFTs.The most popular wallet to use and one of the easiest to set up is MetaMask. MetaMask is also one of the most compatible wallets for NFT projects and exchanges alike.Setting up your MetaMask walletInstall MetaMask extension on your browser - 1. A new window will open once installed, and you will have to follow the instructions t   o ‘create a new wallet’2. Your ‘Secret Recovery Phrase’ will be generated. It is of extreme importance that you take this down somewhere and guard it with your life. This is by all accounts and  purposes, your wallet’s master password.3. Once done, your wallet is set up and you will be able to access it from the MetaMask icon in your browser Funding your MetaMask walletThere are two main ways to fund your MetaMask wallet, both methods of which will be shared herePurchasing cryptocurrency directly in MetaMask1. Open your MetaMask wallet by clicking the extension icon in your browser2. Click ‘Buy’ and you will be presented with 2 options, two of which involve purchasing cryptocurrency in MetaMask:Buy ETH with Wyre - this allows you to use a debit card to complete the purchase of ETHBuy ETH with Transak - this allows you to use a debit card or bank transfer to complete the purchase of ETH3. Once done, check your transaction history for a proof of purchase, and if successful, the ETH will appear in your wallet shortly4. As these are third-party tools MetaMask charges a premium for purchasing ETH via the above two options.There is a third and more cost-effective option, as follows:Sending cryptocurrency to your wallet from a crypto exchange1. By purchasing cryptocurrencies on an exchange such as Coinbase or Binance, you are able to send the supported currency to your MetaMask wallet2. On your cryptocurrency exchange’s interface, there will be an option for you to ‘send’ cryptocurrency3. Click ‘send’, select the cryptocurrency you wish to transfer and enter your MetaMask address into the ‘To’ field4. You are able to copy and paste your address from the MetaMask extension at the click of a button5. When sending cryptocurrency into your MetaMask wallet, users are required to pay a certain gas fee, which is the IRL equivalent of a transaction fee/ shipping fee
  2. Getting an NFTThis is split into two parts, minting and purchasing on exchanges.Minting your NFT1. When projects are launching, the team will announce information regarding how you can mint your NFT2. On launch day, head over to the project’s website where you will be required to follow certain instructions3. Connect your wallet to the website and check your eligibility to mint. If you are eligible,Enter your desired mint amount (projects will usually allocate between 1 - 10 mints to each wallet) and click ‘Mint’A MetaMask popup will appear from your browser extension telling you:          1. ETH required to mint your desired amount of NFTs          2. ‘Suggested gas fee’ to pay           3. Total maximum amount of ETH required to mint your NFTsClick ‘Reject’ to stop the transaction or ‘Confirm’ to proceed with mintingAfter clicking ‘Confirm’ the transaction has been sent for confirmation on the blockchain and if successful, your NFT will show up in your wallet shortly.Purchasing your NFT on exchanges (Early Access and Ranked Auction)The most popular exchange to purchase or sell NFTs is OpenSea1. Head to and click the OpenSea profile icon at the top right2. Click ‘Profile’ and you will be prompted by your MetaMask extension to complete several steps3. Upon reaching the final prompt, click ‘Sign’ and your account will be created!4. In the search bar, look for the project whose NFT you wish to purchase and proceed to the project pageAt this point, it is imperative that you select the official project OpenSea pageIt is recommended that you only follow official links from the projects Twitter or Discord channels5. Once you find the NFT you wish to purchase, click on the image/ video6. If it is available for purchase, click ‘Buy Now’; which will trigger a pop up where you will be required to agree to T&Cs before clicking ‘Checkout’7. A popup will emerge from the MetaMask extension showing the ETH to pay for purchasing the NFT along with a quote for Gas fees8. Should you have enough cryptocurrency, click ‘Confirm’ and your transaction will be processed9. If successful, your NFT will show up in your wallet and in your OpenSea profile Useful resourcesFull OpenSea beginners guide (23 min) - NFTs on OpenSea - Getting your LetsWalkEach Walk release will be split between 1) Ranked Auction or 2) Private Listings for those chosen for Early AccessRanked AuctionOpenSea will be accepting multiple bids from top to bottom at the end of the auction time. For example, If there's a walk with an edition of 10, 10 bids will be accepted starting from the highest. Private Listing / Early AccessThe Private Listing price will be around .3~.7 ETH depending on the Walks rarity. Walks will be assigned RANDOMLY for those chosen for Early Access. (edited)
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  4. Cryptocurrency / NFT JargonGasRefers to the fee required to successfully complete a transaction, including minting or trading NFTs. Gas fees are dependent on the demand for the computational power of the network.Gas WarRefers to a surge in gas prices, caused when the demand for computational power massively outstrips supply. Caused by a large amount of transactions looking to get confirmed within a small time frame. The higher the gas paid, the higher the priority of the transaction to be confirmed. This happens when the network is congested with demand (like a traffic jam)MintingThe process in which a digital art piece becomes a part of the blockchain, a public ledger that is tamper-proof. The art piece then becomes an NFT which shows proof of ownership and is able to be easily purchased and transacted in the marketWhitelist/ pre-saleA modification to the sale of the NFT such that only specific individuals/ wallet addresses can mint NFTs of a project. This prevents the public from participating and at the same time, prevents a gas warUtilityReferred to as the ‘usefulness’ of holding an NFT. Some projects have utility that grants unique perks to holders of a specific NFT collection such as derivative projects, airdrops or exclusive merchandiseHow to navigate NFT Twitter We like to refer to Punk6529’s tweet thread. Common NFT CritiquesAren’t NFTs a scam?Because NFTs allow for digital ownership rights, NFTs are quite the opposite of a scam - they are the most transparent record of ownership due to the open public nature of blockchains. Be sure to do your own research (DYOR) on the artist and project to assess the integrity and risk of those selling NFTs. NFTs are simply a technology (like a website) that empower individuals to sell ownership rights of their creations. But I heard NFTs are bad for the environment?The primary environmental concern from NFTs are due to the use of computing power and energy from the underlying blockchains. While NFTs do require some energy use, it is helpful to think of this energy use as no different than using a laptop to conduct work, or driving a car to commute to the office. All of these things require some use of energy with NFT’s being no different. Remember that NFTs empower artists and creatives to make a living by directly engaging with their communities through NFT purchases - we are all required to use some energy to generate a living for ourselves. Additionally, blockchains are increasingly becoming more and more energy efficient over time.

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