How to create NFT in India?
- 25 October 2021 | 2958 Views | By Abhinav Mishra
NFT in India has now started to align with the global trend. Various Indian celebrities are in the News for a different reason recently. Stars like Amitabh Bachan, Salman Khan, Rishabh Pant, Manish Malhotra have recently launched their NFT, and it is all over social media. Also, an artist sold his digital art for $69 million as NFT. You must be tempted to know about NFT, are you?
You must be wondering what these NFTs are, and can you create your NFTs? In this article, we will answer all your questions about NFTs.
What is NFT?
A Non-Fungible Token (NFT) in a layman’s language is something unique. It cannot be replaced by something else. Let us understand it with an example. You must have heard of the famous Mono Lisa painting. You can go to the museum, look at it, even take a picture of it, frame it, and put it on your home wall. The original painting is not yours, and no one else can own it. Similarly, if you are an artist and you write songs, the songs you create are your Non-Fungible Token (NFT).
What is the difference between fungible and non-fungible?
Before we go ahead, let us try to understand the terms fungible and non-fungible. Non-fungible means one of a kind. In the world, the most fungible thing is the American dollar. 85% of all transactions are done in American dollars as it is fungible. Non-fungible is the opposite as there is one of them. You can have copies of it, but the original is only with one person.
Many people think of Bitcoin as NFT, but it is not. Bitcoin is a fungible token as it is not a unique asset, and you can replace and exchange your Bitcoin with another Bitcoin.
How does NFT work?
NFTs are part of the Ethereum blockchain where each NFT is a token on the blockchain with extra information stored in them. This additional information is what we discussed above as something unique. It could be a form of music, art, MP3, videos, GIFs, etc. NFTs can be sold and bought in the market just like physical art. The value of your NFT will depend on the demand and the market.
Assume you have written a song and you want to sell it online. You can use NFT to sell the song. The purpose of NFT is to sell your work without you meeting anyone. It makes the trade easy, fast and also eliminates the middleman in the sales process. Since there is no middleman, you don’t have to make heavy brokerage. Your song will be assigned a unique code (token) that is proof that the person owns a particular art.
How to create NFT?
You can create your own NFT, and even though it may sound like something very complicated, it is not. Whether you are looking to create an image or GIF as NFT, the process is simple. The first thing you need to do is decide your artwork. It could be any digital file – including music, video, or text. All you need to take care of is that it must be unique.
Next, you need to decide the blockchain you need to use. The most common cryptocurrency is Ethereum.
How to sell NFT in India?
There are many market spaces you can choose to list your NFT. Axie OpeanSea, CryptoPunks, Infinity, NBA Top Shot, Rarible, Foundation, and Sorare are some popular sites. With most of these platforms, you will have to spend money to list your NFT. However, OpenSea is a free platform to sell your NFT. You will still need a digital wallet to create an account and sign up.
Steps to selling your NFT through OpenSea
- You can visit https://opensea.io/
- As mentioned above, you need to have an Ethereum wallet. You can connect using your existing wallet or create a new one. We created a wallet on Coinbase to proceed further.
- Once the link is established, you will be re-directed to a new window where you can create your item. You can upload whatever you need to sell as NFT, give a name to it, and a link to your website if you want.
- To increase the uniqueness of your NFT, you need to include unique characteristics and traits.
- Once done, you will see NFT in your collection.
- Even though the listing is free, you need to pay a one-time gas fee in Ethereum. It could be between $200 and $300.
Here is an NFT we created as a part of the research for this article.
Are buying and selling of NFTs legal in India?
At present, there are no laws in India that ban trading in NFT. You must also know, there is no separate legal framework for NFTs in India. There has been a debate on the classification of NFTs in India. Some experts believe it to be a contract, while some think of it as a derivative. If it turns out to be the latter, it would mean a ban on trading in NFT in India.