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Article shared from Explica .co
NFT is the buzzword inside and outside the crypto world. And it is that the non-fungible-tokens or non-fungible tokens have become the way for artists and creators of all kinds, to offer their digital works to buyers around the world.
However, contrary to what many might think, creating an NFT is not free. Therefore, and so that you know what costs you could face during this process, today we explain how much it costs to create an NFT on the Blockchain.
Of course, before going on to explain how much it costs to create and sell an NFT, we must start by explaining what an NFT is. And, the non-fungible-tokens are nothing other than tokens created in a specific Blockchain that have a unique and unrepeatable content. This content can be a work of art, a collectible, powers in a game, the deed to a real house, or just about anything you can imagine.
The advantage of the NFTs is that they certify the authenticity of the content of the token. Well, being hosted on Blockchains such as Binance Smart Chain or Ethereum, these tokens cannot be duplicated or forged. Therefore, the person who buys the NFT of a digital work of art, can be sure that he bought the original piece, and that therefore he is its exclusive owner. And that any other sample of the content of its tokens, is nothing more than a mere copy.
NFTs can be created by anyone, only requiring that a smart contract be created within the Blockchain of our choice. This contract will in turn give life to the token, which we can now transfer to someone else’s wallet as if it were a cryptocurrency. Or sell it in a market created specifically for transactions with NFT. Which also on many occasions offer themselves the tools to create the NFTs, without having to write our own smart contract.
Now, this all sounds great. However, although it may seem like a very simple process, creating and selling an NFT is not free. On the contrary, interactions with the Blockchain usually have an associated cost in the form of commissions, or as they are known in the Ethereum and Binance Smart Chain, “gas”. Gas is the commission paid to miners for executing transactions within the Blockchain and varies according to market conditions.
Thus, when the Blockchain faces many transactions at the same time, the price of gas will skyrocket, as miners will have a long list of transactions to execute, and they will prioritize those that provide them with a higher commission. Therefore, if we make a transfer from our NFT paying a very low commission, it will most likely never be executed.
In this way, in the process of creating and selling an NFT on the Blockchain, we will face several payments. In the first place, when we create our NFT, it is possible that the platform we work with will charge us a commission for the creation of the smart contract, although many of them offer this service for free.
Later, when we sell the NFT, the commission for sending the token must also be assumed. And finally, sending our payment through the NFT will also have an associated commission. What, in Blockchains like Ethereum, where each transaction can cost up to $ 50, can represent a very significant cost. Therefore, we must analyze these factors before creating our NFT, and choose Blockchains such as Binance Smart Chain with low gas costs.
Article shared from Explica .co
