An introduction to the world of art

Since the beginning of 2021, NFTS become increasingly popular due to high -priced sales.

Some remarkable NFT sales in 2021 like the Video Clip by LeBron James from NBA Top Shot (see explanations in the following video), which was sold on February 22nd for $ 208,000, the album from 3lau, which earned $ 11.7 million turnover on February 28, and the work of the digital artist Beeple , on 11 March for 69.3 Millions of $ sold, NFTs have made a particularly current topic in pop culture.

$ 71.455 LeBron James Nft Sold !! NFT Market and NBA Top Shot Explained

In March 2021 alone, the NFT sales exceeded $ 220 million, making up almost half of all NFT sales of all time.

This renewed interest in NFTs, especially in the areas of art, music and sport, has found its way into the mainstream awareness, especially among the younger generation.

In an episode of Saturday Night Live on March 27, 2021, the actors satirized this growing niche with a comedy sketch via NFTS, which was later sold on April 6, 2021 in the form of an NFTS for $ 365,000.

'Saturday Night Live' Explains NFTS in eminem style

The history of the cryptokitties and Ethereum

Cryptokitties represents a blockchain game on the underlying network of Ethereum , in which players can shop, collect, breed and sell virtual cats. The game achieved great popularity, which led to an overload of the Ethereum network in December 2017. Each cryptokitty is a unique, non -fungbles token (NFT), which can be bought and sold.

On December 2, 2017, Genesis, the first cat for ETH246,9255 (~ $ 117,712) was sold. On March 20, 2018, it was announced that cryptokitties will be spun off in its own company, Doper Labs and received $ 12 million from several top venture capital companies and fishing investors.

The investment round was led by Union Square Ventures from New York and Andreessen Horowitz from San Francisco. In October 2018, Cryptokitties reached the milestone of 1 million bred cats with a volume of 3.2 million transactions on its smart contracts. In November 2018, Dapper Labs, which was outlined as a developer of Cryptokitties from Axiom Zen, collected another $ 15 million in a risk round run by VenRock.

The company doubled its evaluation in this round. In 2018, Cryptokitties was used by the German Museum ZKM Center for Art and Media Technology Karlsruhe to present blockchain technology.

What are NFTS?

A non-fungal token (NFT) describes a data unit that is also stored in a digital main register under the term blockchain . An example of such a blockchain is Ethereum. It represents the uniqueness of a digital wealth value and is therefore not interchangeable or not fun.

The term says that things like furniture, computers and Co. can be described. Due to their unique property, they are not interchangeable. On the other hand, ETH and dollar are fun, because 1 ETH or $ 1 USD can be exchanged for 1 ETH or $ 1 USD.

The NFT can be associated with a digital or physical asset (e.g. a file or a physical object) and a license to use the assets for a specific purpose. A trade in the NFTS with the associated license for the use, copy or display of the assets takes place on digital marketplaces. The functionality of NFTs can be compared to those of cryptographic tokens.

What are gas fees?

Behind the term "gas fee" is nothing more than the transaction fee of the Ethereum blockchain, on which most of the NFTS are based. The gas price is defined in ETH and is due for a transaction. The higher the occupancy of the blockchain, the higher the gas price.

The same also applies to the Ethereum Prize , with a high price the fee is accordingly higher. Miner therefore prefer transactions with a high gas price, because they get the fee as a remuneration. Unpasted transactions are practically in competition with each other.

What can NFTs be used for?

NFTS are used in the representation of objects such as B. Photos, videos, audio files and other types of digital files. Due to the property of blockchain to ensure a clear signature and the property of NFTS, NFTs are often used as digital art.

An example of this is the digital work of art "Everydays - The First 5000 Days" by the artist Mike Winkelmann . It was sold in 2021 for a proud $ 69.3 million .

Access is not limited to the buyer and is therefore possible from the outside. By tracking the NFTs on blockchains, the owner can be clearly identified.

Create and sell by NFTS

To start your own NFT collection , you need a few things. On the one hand, there would be a digital wallet (wallet) with which you can save your NFTs and cryptocurrencies. Since NFTs are paid with cryptocurrencies, it should be checked which cryptocurrency is accepted and buy them.

Serious crypto borns are z. B. octopus , coinbase , or bison . Then a decision for a marketplace for your NFT work must be made. Most include functions with which you can connect your wallet.

The creation of NFTs is made by uploading your work in a suitable file format on the trading platform. In the next step, settings for sale are made, such as auction or fixed price sale with the option on royalties.

Tanties are percentage shares that you receive with every sale of your work of art. When the specification is complete, click on "Create" and your work of art is uploaded.