Gm frens, I know you know NFTs, but have you ever wondered about the process that turns a piece of digital art into an NFT?
Well, Let’s talk a bit about NFT minting. You most likely have knowledge of the word “Mint” as it pertains to the process of making Naira notes or whatever fiat currency your country uses. Well, if you do, then you already understand what it means to mint an NFT.
NFT minting refers to the process of converting any form of digital data into a blockchain-based asset (token). The result of this process is an NFT. The process is similar to how a coin or naira bill is made in real life.
Minting an NFT is one of the few ways to own an NFT. Oh! Let’s get it from the top. There are basically three ways to get an NFT; Read more about that here
Minting an NFT in normie terms means buying directly from the creator(don’t get me wrong, creators do mint their NFTs in some cases, especially for 1of1s) but for NFT collections of which the BAYC is an example, they always begin with “minting of the NFTs“. Some NFT exchange platforms offer a “lazy minting service” in this process, the creators make the NFTs available off-chain and they only get minted when sold to the first buyer. For some NFT collections, the mint is free (free mint), and for some, there is a fee (mint price) it could be cheap or ridiculously expensive.
If you are unable to mint an NFT you really want/need, you can purchase it on a secondary marketplace( a secondary market is where an NFT that was bought/minted can be resold; an example of such is OPENSEA).
More often than not, when you mint an NFT, you can sell it for a higher price on the secondary market (you should take that piece of information with a pinch of salt.) An example is the Goblintown NFTs that were minted for free in May 2022, and in June 2022 it was trading for above 8 Eth on secondary marketplaces, once in a lifetime opportunity right? (Now you probably understand why some NFT traders go as far as taking pictures with goats to get a mint spot.)
For most projects, you can either mint from a guaranteed mint spot mostly known as a Whitelist or you can mint during the public mint window. Yeah… I know, I know…
“What’s a whitelist?” “What’s a public mint window?” “How do they work?” I’ll give a simple analogy that will most likely answer those questions.
Imagine a Gold mining company comes to your town where about 2000 people live, and an announcement is made that the first 200 people to arrive at the town hall will get a permit to mine gold for themselves on a fixed date. The permit is the whitelist, the 200 people are the whitelisted people, the gold is the NFT and the Gold mining company is the NFT project/creator. If the Gold mining company had plans to let 300 people mine gold, the remaining 100 spots would be left open to the remaining 1800 people. You know how low the chances are if you did not get the permit(whitelist).
The 300 people who successfully mine the gold are at liberty to sell their gold at any price they deem fit to anyone among the 1700 that could not mine or to any among the 300 that needs more than he was able to mine.
This is probably the simplest explanation of the “Basic concepts of NFT Minting”. If you understood a thing or two, ‘GG’ if you didn’t, don’t worry, take a walk and come back to it, ‘WAGMI’.
An avid learner, Firm believer of Blockchain, Preacher of the word of NFTs, I make merchandize of NFTs too..