Estimated reading time: 12 minutes
In this article, I’ll discuss the difference between crypto coins and tokens. Then, I will discuss Fungible and Non-Fungible Tokens (NFTs). And in the end, we will also go through the steps to create and sell our first NFT using Rarible.
Table of Contents
Crypto Coin vs Token
In the crypto world, two terms are widely used: Coins and Tokens. Many people get confused between these two terms. Firstly, coins and tokens are two different concepts.
Coin: It is a cryptocurrency that has its own blockchain platform like Bitcoin, Ethereum. miners/stakers/validators do the job of mining coins over time.
Token: It is a cryptocurrency that requires another platform like ethereum to exist and operate. Tokens are created only once. The most popular token standards for ethereum are ERC-20 and ERC-721. We’ll discuss this in a bit of depth later.
Fungible and Non-Fungible Tokens
Fungible means to be the same or interchangeable. For example, Dollar, Gold, Bitcoin, etc. It can be divisible into units. For example, $1 can be exchanged for 100 cents. In addition, Fungible things don’t lose their value, for example, a $1 dollar bill will always represent $1 either it’s in your hand or in Obama’s hand.
Fungible things are entirely interchangeable. It doesn’t matter when, where, and at what price they were acquired. They have the same value because they represent equal quantities of the same thing.
On Etheruem, the ERC-20 is a standard for fungible tokens. It has a property that makes each token be exactly the same as another token.
Non-Fungible Tokens (NFTs)
Non-Fungible tokens are unique and non-divisible. It has some unique property that makes it different from all others in the same class. NFT tokenized the artist’s work and made it a unique brand.
One non-fungible token can worth way more than another non-fungible token of the same type. Each token has its own unique value in the market.
On Ethereum, the ERC-721 introduces a standard for Non-Fungible Tokens. Each NFT has a uint256 variable called tokenId, so for any ERC-721 smart contract, the pair contract address, uint256 tokenId must be globally unique.
Examples for NFTs: a painting, a theatre ticket, a house, a video game skin, trademark, Cryptokitties.
CryptoKitties collectibles are some of the first non-fungible tokens. Each digital kitten is unique; if you send someone a CryptoKitty and receive a CryptoKitty from someone else, the one you receive will be a completely different CryptoKitty from the one you sent. Collecting different digital kittens is the point of the game.
The unique information of a non-fungible token, like a CryptoKitty, is stored in its smart contract and immutably recorded on that token’s blockchain.
Create your first NFT using Rarible
Before starting with creating NFT, let me inform you, you will be charged some ETH (Gas) as a transaction fee.
There are multiple NFT marketplaces where we can create NFT(digital art), sell or buy digital art.
Here, we’ll use Rarible to create our first NFT. Rarible is an NFT marketplace where users can sign in using Ethereum wallets to buy and sell digital art. You can view the collectibles you have created on Rarible on OpenSea and manage them there as well.
We’ll also need a wallet to connect with Rarible. It can be Metamask, Fortmatic, WalletConnect, Coinbase wallet, MyEther wallet, or Torus.
But for this article, we’ll use Metamask.
If you have already set up Metamaks wallet in your browser, you can skip Step 1.
Step 1: Set up MetaMask wallet
a. Add MetaMask extension to chrome (Add from here).
b. Look for the MetaMask logo on the chrome toolbar and click on it.
c. Click on “Get Started.”
d. Click on “Create a wallet” You can also import your existing wallet if you have any.
e. Now, you will find the “Help Us Improve MetaMask” page. It is up to you whether you want to share user data like user experience, events with MetaMask. I will go with “I Agree.”
f. Next, it will ask to set a password to access the wallet. Enter a password of your choice having eight characters and agree to terms & conditions. Click “Create.”
g. You will find the Secret backup phrase. Please save it to your local system to restore your account later. Click “Next.”
h. Place all the words of the secret phrase in the original order. Click “Confirm.”
i. Congratulations!!! You have successfully set up your MetaMask wallet. Click on “All Done.”
Step 2: Add some Ether to the account address
You need to add some ETH to the account address to create NFT and make sure you are in Ethereum Mainnet.
You can also buy ETH using your debit card on Metamask by following,
- Go to a particular account
- Click buy
- Continue to Wyre
- Enter card details and amount.
Step 3: Connect Rarible with Metamask wallet
a. Go to Rarible
b. Click the “Connect wallet” option available on the top-right of the home page.
Many options are there to connect the wallet with Rarible. But, we’ll go with Metamask.
c. On selecting metamask, metamask will ask which account you would like to connect with rarible. By default, Account 1 is set. If there are multiple accounts in my metamask wallet, all accounts would be listed here.
So, select the account and click Next.
d. Next, Metamask will ask permission for rarible to view the addresses of permitted accounts.
e. After done with Metamask, Rarible will ask to accept its terms of services and age ability.
Check both and click “Proceed.”
Now, we are done connecting the wallet. Now, we will see how to create NFT using Rarible.
Step 4: Create NFT using Rarible
In this step, we’ll create the “Original Monk of Coinmonks” NFT as the first NFT of Coinmonks publication step by step.
a. Go to the “Home page” of Rarible and click “Create” available on the top-right side of the page.
b. There are two types of collectibles: Single and multiple. If you want to create a single digital copy of your art and sell it to only one person, go for a Single collectible. If you’re going to sell multiple copies of your digital art to multiple persons, go for Multiple collectibles.
Here, I will go with a single collectible.
c. Upload a file of your art.
d. You can put your NFT on sale via the toggle button so that you can receive bids on this item. It is not mandatory to put NFT on sale while creating it. You can also put it on sale after completing it.
e. You can also set the price for which item will be instantly sold. Here, I put 5 ETH. One can also set price in DAI, RARI, ATRI, etc. 2.5% service fee will be taken from this.
f. As a content creator, you can add unlockable content to your collectibles that only becomes visible after a transfer of ownership. Artists use this feature to include high-resolution files, making official videos, secret messages, etc.
g. Choose a collection in which you want to put this collectible. I will go with Rarible.
h. Enter the name of your collectible. I have given — Original Monk of Coinmonks
i. Provide description. I have given — The First NFT from Coinmonks Publication.
j. Specify royalties. Whenever you create a collectible, you can set a certain percentage as royalty for secondary sales. Example: You create a digital painting and sell it for 0.2 ETH; the royalty is 10 percent. Your buyer then sells your artwork at a higher price of 0.5 ETH. Here, the royalty system kicks in. As the original content creator, you receive 10% of that sale, being 0.05 ETH.
k. You can also specify your properties like the size in px or color or any.
l. Click “Create item.”
Step 5: Approve, Mint token, and Sign sell order
a. Before creating NFT, Rarible will follow the below three steps in coordination with your connected wallet.
b. You will get a Metamask notification to approve the transaction.
Some gas fee has been charged to you for this transaction. For me, it’s 0.004802 ETH. The gas fee can be varied. It depends on how much traffic available on the ethereum network—more traffic=High gas fee.
c. Next stage is “Upload files and Mint token.”
Mint is the process of tokenizing your work and creating an NFT. It calls the contract method for this purpose.
d. You will get a Metamask notification to confirm contract integration.
It will also charge some gas fees in ETH. Here, it is 0.031159 ETH.
e. Last stage is to sign a sell order.
f. You will get a Metamask notification for signature request.
Here, we are done with creating our first NFT.
So, Where to find the created NFT??
- Click on your profile.
- My items
- Woohoo!! Check out your collectibles.
You can also see all the collectibles which are on sale.
Please visit Original Monk of Coinmonks — NFT.
You can also explore it on OpenSea.
Creating and Selling NFT: Conclusion
After discussing on NFTs, we can conclude below a few things about NFTs:
- Non-Fungible tokens are unique and non-divisible.
- The ERC-20 is a standard for Fungible Tokens, while ERC-721 is a standard for Non-Fungible Tokens.
- There are multiple NFT marketplaces available like OpenSea, Nifty Gateway, SuperRare, Cargo, Rarible.
- Ethereum wallet is needed to connect with the NFT marketplace to pay a gas fee.
- Ethereum gas fee varies based on the traffic available on the ethereum network.
I hope you guys will find this article useful.