Minting NFTs

Minting NFTs

Non-fungible tokens (NFTs) are among the hottest assets in the crypto world today. While almost everyone has heard of these collectible tokens and their importance in the emerging Web3 digital landscape, most people don't fully understand how they are created. Here's what you need to know about how these digital assets are minted.

What Exactly Is Minting?

Minting is simply another term for creating digital assets on a blockchain. In this case, the asset being created is a token based on a collectible, such as an image or a piece of music. Minting an NFT involves uploading the underlying file to a blockchain database on which it will be stored. Once the file has been added to the database, it can never be removed or edited. From there, the token generated by this process can be bought or sold much like a cryptocurrency.

Who Needs to Mint NFTs?

For the most part, NFTs today are minted by digital creators who want to sell their artwork. That, however, may change as Web3 becomes a reality. Web3 is a term used to describe the combination of blockchain, metaverse, cryptocurrency, and other technologies powering a new-and-improved version of the internet.

In such an environment, NFTs have a variety of practical use cases. These include proving ownership of real estate, transferring digital goods inside of games, and even providing digital identity verification. So, while these digital assets are mostly the domain of artists and creators today, they will very likely be used to some extent by practically everyone in the future.

The NFT Minting Process

Before a non-fungible token can be minted, the person making it needs a crypto wallet, the cryptocurrency native to the blockchain being used, and a file to be converted into an NFT. In the vast majority of cases, the currency used to mint an NFT is Ethereum. Although other blockchains are gaining ground, the Ethereum blockchain still commands about 80 percent of the NFT market.

With these three things in place, users can go to any one of several NFT marketplaces to mint their tokens. These marketplaces make the minting process simple by handling the conversion and uploading of the files being tokenized. The cryptocurrency in the user's wallet is used to pay the fees associated with minting the non-fungible token.

Once the file has been uploaded, it must be added to the blockchain. As soon as this takes place, the user who uploaded it receives the resulting non-fungible token. From there, the user can either hold or sell the token. This digital asset can easily be transferred from user to user and carries immutable proof of ownership with it.

While it's useful to know how NFTs are minted, most users don't need to know how to create their own. Unless you're a digital creator, you're more likely to buy and sell NFTs than mint them yourself. You can also win NFTs on the Tokened platform. With Tokened, you can win NFTs. Now is your chance to get involved with NFTs at the highest level. Enter to win NFTs today and you could receive a valuable token to add to your collection!