How NFTs Work

“What does minting an NFT mean?” When it comes to understanding how NFTs are created or “minted,” it’s easiest to think of these digital assets as being uploaded and published on an NFT minting site that helps record the time, date, and owner of the said asset among other pieces of “metadata.” ‍ “What is NFT metadata?”

NFT metadata are the attributes an artist assigns to all of the pieces in a single collection. These can include anything from the background color, clothes, accessories, traits, and more. These pieces of information are unique to each collection as everyone’s artwork is different and needs to be assigned accordingly. ‍ For traditional artists that “digitize” their artwork, a description can be included in the metadata to give collectors a better understanding of who the artist is, what the piece is about, and how it was created. ‍

Metadata helps collectors gauge the rarity and ranking of an NFT, especially in larger collections where the base artwork and attributes thereof have been randomized so that each NFT includes unique traits that make the piece truly one of a kind. ‍ Minting these assets and having them exist on the blockchain provides artists with a lucrative opportunity to monetize their brand by selling their NFTs directly to a world of buyers online and retaining most of the profits. Additionally, artists can add artist royalties to their collection so that whenever a piece is sold to a new owner they’ll receive a percentage of the sale value. ‍ This is in stark contrast to say using an auction house, where the middleman would take a disproportionately higher percentage of the sale, the buying pool is a lot smaller and often very selective, and there is usually no option for royalties to be paid when the asset changes hands.

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