A Practical Guide to Converting Digital Assets to NFT

The First Step in Utilizing NFT Marketplaces

Digital art, music, videos, in-game items, and other content created by creators can now be recorded and traded as NFTs. Non-fungible tokens are unique digital assets that are permanently stored on the blockchain. Leveraging the characteristics that prevent copying or tampering, they function as a new way to prove ownership of digital content.

With an internet connection, virtually anyone can issue an NFT. The democratization of blockchain technology has allowed a diverse range of creators, including artists, musicians, and game developers, to enter this ecosystem. However, effectively creating and selling NFTs requires a fundamental understanding of technology and strategic preparation.

Main Use Cases of NFT

The Potential of Digital Art

Digital art in various forms, including images, illustrations, animations, and interactive works that include AI creations, can be tokenized as NFTs. Artists are equipped with a more direct way to sell their works and earn revenue from subsequent secondary transactions.

New Utilization Methods for Media Content

Video content such as movies, music videos, and live sports clips can also be expressed as NFTs. Creators can reach audiences without geographical limitations and monetize their works to fans around the world.

Development in the Music and Sound Field

Musicians and sound creators can now sell songs, albums, and concert tickets directly to fans. There are plenty of options to add limited editions and unique bonuses, such as access to closed communities or tutorial videos.

Game Items and Collectibles

Trading cards, virtual pets, in-game weapons, armor, skins, in-game currency, and other digital collections can be turned into NFTs. The mechanisms for trading and verification, which were previously limited to physical collections, have now been expanded into the digital realm.

Preparation Stage Before Getting Started in Earnest

Selection of Blockchain Platform

Ethereum is the mainstream for issuing NFTs, but options like BNB Chain, Cardano, Solana, and EOS are also available. Each platform has different fee structures, processing speeds, and levels of ecosystem maturity. Once the platform is chosen, changing the chain is not possible, so it is important to consider this in advance.

Preparing Digital Wallet and Funding

Build a wallet that is compatible with the selected blockchain and securely manage your private keys or seed phrases. If you lose access to your wallet, you will also lose access to your assets.

To pay the gas fees (network fees) incurred when issuing an NFT, you need to purchase the native cryptocurrency of the relevant blockchain. It can be purchased through a cryptocurrency exchange or wallet.

Selection of NFT Marketplace

Choose an NFT marketplace that supports the blockchain and wallet you will use. Many platforms offer full-service support for the entire process from NFT creation to listing and selling. Since the features and fees differ between platforms, it is recommended to compare multiple options.

Specific Steps for NFT Issuance

Step 1: Connect Wallet to Marketplace

Connect your digital wallet to the selected platform. This connection will allow for approvals and signatures when issuing NFTs.

Step 2: Access to NFT Creation Function

Look for the “Create” or “Generate” section of the marketplace and start the NFT issuance wizard. In this section, you can upload media files, set NFT features, and enter detailed information.

Step 3: Prepare Digital Assets

Choose the appropriate tools and software based on the type of content you are creating:

• Digital Art: Image editing software (JPG, PNG format)
• 3D Artwork: 3D modeling tool (export in GLB format)
• Photo: Image editing and adjustment software
• AI Works: Text Prompt-Based AI Generation Tool

Step 4: Upload Media Files

Upload images, audio, videos, or other media to the platform. Please ensure you are using the appropriate file format.

Step 5: Input and Set NFT Information

You can attach a name and description to the NFT. It's also possible to set up limited editions and add reward content (such as tutorial videos, community access, etc.). Limiting the number of issues is also a common option.

Step 6: Execute NFT issuance

Review all information and confirm the settings, including the blockchain selection, before clicking the “Create” button. The platform will process the request, and the NFT will be recorded on the blockchain.

Step 7: Listing on the Marketplace

After issuing the NFT, if you want to sell it, you will need to go through the procedure of listing it on the market, setting your desired price and sales conditions. This procedure allows the work to be promoted more effectively and increases the potential for monetization.

Cost Structure for NFT Issuance

Network Fee

When issuing an NFT, a transaction fee is incurred on the blockchain network. This fee is paid in the network's native cryptocurrency and fluctuates based on network congestion and demand changes.

Platform Fee

Many NFT marketplaces charge a fixed fee or a fee based on the number of items issued at the time of issuance. A percentage fee or commission (usually around 2-10%) is incurred on the selling price when selling NFTs.

Storage Fees

To permanently store digital assets, it may be necessary to use centralized or decentralized storage services. Depending on the type of service and storage capacity, ongoing costs may be incurred.

Appropriate Pricing Strategies for NFTs

The price of NFTs is influenced by multiple factors: rarity, utility, the creator's reputation, aesthetic quality, background story, and level of engagement with the community.

First, evaluate the uniqueness and functionality of the NFT to be issued. Next, research similar collections and NFTs to understand current market trends. By using the minimum price of comparable collections as a benchmark, you can determine a competitive starting price.

Pricing is a process that has both scientific and artistic aspects. It is important to maintain a flexible attitude to adjust prices based on market reactions and feedback from the community. Consulting with other NFT creators also brings valuable perspectives. The cryptocurrency community is collaborative and proactive in providing support.

Intellectual Property Rights and NFT Content Protection

Copyright also applies to NFTs. Using someone else's work without permission can lead to legal issues.

The best way to protect yourself and your NFT is to secure rights to the content you use. Make sure you are the content owner or have obtained proper permission from the original creator.

The theft of others' works not only poses legal risks but also causes real harm to the original creators. It is ethical and legally safe to respect others' works and always obtain the proper permissions before generating NFTs with content you did not create.

Finally

NFT is transforming the landscape of digital assets as an innovative means of proving ownership and verifying the authenticity of content such as digital art, music, and videos.

As access to NFT marketplaces becomes easier, many creators are entering this technology and exploring its mechanisms. However, it is important to remember that in order to succeed, one must not only create digital assets that the market demands but also deeply understand factors such as cost structures, pricing strategies, and legal aspects.