DeFi
September 28, 2022
What is Token Burn and it's effects on price
An A-Z guide on token burning and how it is largely impacting the cryptocurrency industry.
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Cryptocurrency is still in the adoption phase where every month new people are getting introduced to cryptocurrencies. As they discover what all opportunities the crypto world brings for them, they try to learn more and more about things that can make them money.
Cryptocurrency has brought a lot of ways other than trading tokens via which you can make some money. In that, NFT is a fairly new concept for many and so it's working. However, NFTs are getting a lot more traction with the introduction of Metaverse.
Therefore, what are NFTs and how to create and sell them are some of the most searched questions on google these days. Most of you must be familiar with the mining process associated with Bitcoin and other cryptocurrencies. Whereas, the minting of NFTs is not known to the majority of people.
If you are an artist or just an enthusiast who wants to know more about NFTs and how to mint them, then this article is for you. Today we will discuss what NFTs are, what is minting and at the end we will guide you through a step-by-step process on how to mint a NFT.
Proof-of-Stake is a consensus mechanism which plays an important role in minting new cryptocurrencies. In the PoS system, validators need to stake a certain amount of pre-mined tokens in order to participate in the task of validating transactions.
From all the users who have staked tokens, some random users are selected who will then verify the transactions made on blockchain and these individuals are known as validators. Validators can liquidate their holdings in order to use it for trading purposes.
This Proof-of-Stake system is the base technology that facilitates minting of an NFT or token. Before we get to the process of minting an NFT, let’s quickly understand what an NFT is.
Non-Fungible Tokens aka NFT is a form of digital asset which gives you ownership of underlying art once you buy it, NFTs can be purchased, sold or traded where the ownership is transferred from one person to another.
Unlike cryptocurrency, each NFT is unique and it cannot be traded with another NFT so both will have their unique value. Therefore, NFTs are quite different from cryptocurrencies in terms of trading, holding and minting.
If you wish to mint a NFT, first you should understand what minting is and how it is done. Let’s understand what minting is and how it is different from mining.
Now that you have a basic understanding of how the Proof-of-Stake system works, it will be easier to understand what minting is. As both Proof-of-Work (PoW) and Proof-of-Stake (PoS) are consensus mechanisms, the Minting process is only associated with PoS just like Mining is related to PoW.
Minting is a process of creating new tokens or NFTs by validating data, adding new blocks to the blockchain and recording all the data on the distributed ledger. The person validating and adding these blocks is known as a validator. These validators are chosen by the PoS consensus system.
This PoS system makes the Minting process decentralized and anyone who meets the requirements of blockchain can mint new coins on PoS based blockchain. Mining is a similar process which works on the older but more secured PoW protocol.
Once these newly minted tokens or NFTs are brought into circulation, they can be traded on the platform. Currently the NFT market is all hyped up and NFTs are being sold at prices as high as $50 million! So if you feel like you could try your hand at minting NFTs or even just buying and selling them, then you should do so!
If you too are excited about NFTs and curious to know about the minting process, here is a detailed step-by-step guide on how to mint a NFT.
NFTs can be minted using various methods. You will find a ton of different methods online but here we have simplified the process for you about minting an NFT. So here is a quick guide to Mint NFT.
The very first step is to go and create an Asset. You can have anything in the form of an asset. You can choose music, art, video, etc. This is the range where users can choose their genre.
To Mint the NFT, the next step is to purchase the ETH Tokens. Now you may know that you can buy tokens from fiat currency through some third party exchanges like Phemex. As the NFT is based on Ethereum, ETH tokens are a must for NFTs.
To set up a wallet, you can find various wallets that can assist you to make your NFT. Wallets like Metamask, Coinbase, etc, can be used.
Now you can move to minting, after you are done with selecting the wallet. Next you have to change the wallet address to ETH so you can easily send and accept the crypto.
After completing the wallet set up, you have to find the Marketplace, a proper platform to mint the NFT. The most popular ones are OpenSea and Rarible.
The last step is to showcase your talent and create you NFT and this process is very simple and easy to do.
That was all about minting the NFTs. Hope you understood every step of our guide. Before winding up this article, we would recommend you to do your own search, mainly on terms like Proof of Stake because it was just a quick introduction in this article. Head over to our article regarding PoS and PoW to learn more about consensus mechanisms.
If you have any question or query related to this article, please express them in the comment section. If you would like us to share an article regarding any particular topic, don’t be shy and ask us. Do check out our other articles and till then start minting your NFTs.
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