#What is the difference between "NFT creation" and "NFT minting"?
The process of creating an image, music, video or any other digital file and turning it into a digital asset that runs on a blockchain is called "NFT creation".
The process of turning a digital asset to a non-fungible token by taking the necessary steps to make it authentic, recognizable, traceable and permanently immutable is called "minting an NFT".
Essentially, these two terms mean the same thing and it is difficult to make a clear distinction between them.
There are numerous ways to turn a digital file into a digital asset, just as there are numerous ways to create a blockchain, mint an NFT and put it up for sale.
Here we'll encounter some of the biggest misconceptions that prevent non-fungible tokens from being properly understood and handled properly.
#An NFT is an abstract asset, it is neither physical nor virtual, in no case can we own it even if we buy it
This isn't true. On the contrary, an NFT can be very real, depending on how it is minted.
In order for a digital asset to be presented as an NFT, there must be a certificate of authenticity and proof of non-fungibility associated with it.
The question is, how do we link this data to the digital asset we want to put up for sale? Because if we don't, the following will happen:
- We will sell an "empty" digital asset and declare it an NFT; in addition, we will have to (reluctantly) store the NFT certificate of authenticity and the certificate of non-fungibility elsewhere (where applicable);
- Or, we can declare the NFT certificate of authenticity an NFT and sell it as such, while the digital assets will be set aside, or not offered at all.
In other words, we will sell an NFT which customers do not buy, but only obtain a permit or license to use under certain conditions, so that license is considered a "commodity" that customers actually buy.
None of the above solutions is sustainable and will not attract customers.
The only sustainable solution is to incorporate this data permanently and invariably into the digital asset itself, using appropriate software tools.
If we manage to do that, if we manage to insert them in a way that they are invisible and do not disturb the structure of the file, and still be available upon request for reading, we will hit the jackpot.
Anyone who buys such a product can claim to have bought and owned a real NFT (real photograph, animation GIF, music, video etc.). This in no way prejudices the right of others to own it if they purchase it (unless the seller specifies otherwise), nor does it in any way infringe the copyright of the NFT owner.
#The cost of minting an NFT can significantly outweigh the profits
Not necessarily. To sell an NFT, we need a platform that utilizes blockchain technology and that allows us to mint an NFT and allow potential customers to verify the NFT transaction.
It is true that most of blockchains utilize inadequate mathematical methods are used to validate transactions, which burden the entire blockchain system and make it more complex and expensive than it should be.
On the other hand, appropriate software tools, such as Telinov8 WM
, will enable the NFT minting process to become transparent and easy to monitor, increase reliability and efficiency, and lower prices.
#An NFT can be easily copied, pirated and illegally distributed
Those who believe - or hope - that this is possible are probably wondering, what if the NFT is an image, so I download it by right-clicking and select "Save as ...", or take a screenshot?
Or, what if the NFT is some piece of music, which I simply record while streaming?
Actually, no, this is not possible - at least not with the NFT made with our software tool.
Each NFT contains metadata, security tags, and even some other files (say, short videos, or profile images) embedded within and that data is stored there permanently - provided the NFT is treated as a whole.
When a screenshot is taken, or sound is recorded, the embedded data disappears. You would have some kind of video or audio stored on your device, but without metadata that would enable verification of the original digital asset, so it would no longer represent a real NFT.
It's a different file now, which resembles an NFT, but the structure of the file has changed and it lacks key information that would testify to its authenticity.
#The price at which an NFT is sold is always abnormally high
Not really. You can sell an NFT at any price. It is true that the prices of some NFTs are inflated, mainly for marketing purposes.
Sometimes the focus is on the author's work, and sometimes it's just an intention to draw attention and make a profit from it.
#NFT sales can only be made through a cryptocurrency-enabled shopping platform
Not true at all. You can sell an NFT in any currency, whether it's fiat currency (e.g. the U.S. dollar, the euro, the pound etc.) or cryptocurrency (e.g. Bitcoin, Ethereum etc.).
You don't have to use any particular shopping platform to sell an NFT, but you do need a platform that utilizes blockchain technology and allows your potential customers to authenticate your NFT.