Last update: September 2021
NFT is a type of cryptographic token that represents a unique asset. They are virtual, tokenized versions of assets that are known in the real world.
NFT stands for "non fungible token", which can be translated as "non fungible token" or "non fungible asset", or, in other words, the meaning of NFT.
It is an asset that is unique, cannot be modified and cannot be exchanged for another of equal value, because there would be no equal. And these assets are also digital, i.e. they have no correlation in the physical world (although sometimes they may have one).
An NFT is a unique digital asset, which, although it can be copied, whoever owns the NFT owns the original, functioning as a sort of certificate of authenticity and having the rights that its acquisition entails.
Any digital content can be tokenized, i.e., thanks to blockchain technology and smart contracts, it can be provided with a series of metadata that guarantee its authenticity, identify its author, its starting and acquisition value and all the transactions it has undergone since its creation, from who created it, who tokenized it and who, where and for how much it was sold.
By tokenizing a digital content (photo, video, track...), a digital certificate of ownership and authenticity is created, which indicates that this content is unique and that the ownership rights are held by the person who acquired it. It is important not to confuse this with copyright, which remains in the possession of the author of the work.
In that sense, NFT smart contracts can serve different purposes, for example, securing for the original artist a share of the profits that may arise from a sale of the future token.
These digital assets are bought and sold on Oshinstar's NFT Marketplace, where their creators (Talent) or sellers offer them for sale at fixed prices or through auctions.
When you decide to create, buy or sell an NFT, you should consider a few factors. You should pay attention to these areas of concern before committing to one of the above actions with an NFT, and marketing it in general. Here are some of the areas to consider:
Creating, buying and selling will be the main feature of Oshinstar Marketplace. Oshinstar has a vibrant and secure marketplace, designing social engagement. By fostering connections, Oshinstar NFT will help talents, collectors and fans build a community. Based on talents' interests, all NFTs will be showcased in one place, helping all talents connect with like-minded fans or artists. The social element shapes the future by sharing passions, generating new collaborations and igniting imagination.
Copyrights are essential when it comes to NFT. Before venturing into the NFT market, we recommend studying this crucial area. Before taking full control of an NFT, you must ensure that you have obtained the appropriate intellectual property rights. You must secure your interest in the intellectual property.
NFT creators must be aware of the rules governing the business and strictly adhere to them. NFT creators are expected to obtain permission from the rightful owner before creating a copy. If unauthorized third-party creation occurs, legal action may follow. If you want to avoid financial penalties and damaging blows to your reputation and brand, you should follow the proper steps when threading in crypto land.
Buyers of NFTs should also be careful where they buy these assets. Some sellers may have ignored the law and bypassed protocols. If the person you are dealing with has stepped in line, you should be careful as a buyer. You should know what you are getting and adhere to it when trading in the cryptocurrency sphere.
The first step to go through the process is to create an account on Oshinstar for free and link a wallet or use the Oshinstar wallet.
You will be able to choose the price and type of sale:
- Fixed price: One in which the price remains fixed. You can set a duration for the sale. The default options are 1 day, 3 days or 1 week, but you can also set a custom duration using the calendar.
- Group in bundle: You can include the item in a bundle. Group different NFTs in different collections.
- Reserve the NFT: Reserve the NFT for a specific buyer.
- Timed Auctions: Oshinstar will automatically complete this transaction if an auction ends above the value set by the seller at the time of creation, and Oshinstar pays the fee in the process. If the auction ends below the set value, it is up to the seller to accept the higher bid. The seller is under no obligation to complete the transaction. Any bids placed in the last 10 minutes of an auction will cause the auction to extend an additional 10 minutes. Popular auctions are often extended with new bids being offered in the last 10 minutes. You can cancel an auction at any time, but to do so will require a fee. If you are running an auction, you can set a reserve price. If you do not receive any bids at or above your reserve price, the auction will end without a sale.
Once an auction starts, users cannot change the reserve price.
In all of these options, you will see the potential sale fees listed at the bottom. In this case, this sale includes the Oshinstar service fee of 2.5% and a 10% Creator Talent Royalty, for a total of 12.5%.
You can also set a duration for the sale. The default options are 1 day, 3 days or 1 week, but you can also set a custom duration using the calendar.
Once you have funded your Oshinstar account, buying an NFT is a simple process. Most marketplaces have an auction format, so you will need to bid. Some marketplaces operate more like an exchange, using the highest bid and lowest ask for NFTs.
One of the advantages of buying an NFT on the main market, such as Oshinstar, is the potential resale value directly after the product goes on sale.
Some high-demand NFTs sell for 5 to 10 times their initial price right after launch. The disadvantage of buying NFT on the primary market is that it is difficult to estimate the demand for the art. On the secondary market, you can compare your purchase with previous sales.
Please note that if you place a bid in a currency you have never purchased with before, you may be required to pay a one-time fee corresponding to the network transaction cost to enable your wallet to purchase with that currency. Once you have enabled your wallet for trading, you will be able to place bids in the currency for free.
By entering the amount of your offer in the relevant currency and the expiration date, you will select "Make Offer" and should sign the relevant transactions in your wallet.
To view a list of all active offers linked to your Oshinstar wallet address, select the Transaction History tab in the Finance Dashboard section of the Oshinstar main menu.
Creating an NFT is a surprisingly easy process. All you need to do is create an account on Oshinstar that allows your talents to create NFTs.
You don't need to know how to create an NFT token or have any experience with blockchain. While anyone can create an NFT, that doesn't mean you can make money selling NFTs.
Tons of NFTs made by random people never sell or sell for extremely low values. For an NFT to have value, it must have some sort of importance: the reputation of the Talent or the historical importance of the Talent.
NFTs can be programmed so that each transaction includes royalties, allowing creative Talents to be fairly rewarded for their work online.
The fact that NFTs are created and stored on the blockchain means they can be exchanged seamlessly from wallet to wallet, with royalties paid each time they are moved.
Royalties of up to 10% will be established for each exchange. In the Oshinstar Finance Dashboard you will be able to break down all transactions, view the timeout for each royalty and future transactions.
Note that royalties also apply to primary sales (sales made by you).
For example, if you set a sale price of 1 OshinCoin and have a 5% royalty on the collection, you will receive 0.925 OshinCoin from the sale (2.5% goes to Oshinstar and 5% corresponds to the royalty ) and then 2-4 weeks later, you will receive the 5% royalty (0.05 OshinCoin).
There are many types of NFTs, but the most popular categories are art, music and collectibles.
Many artists who use digital media as a medium for their art have been attracted to NFTs.
Most NFTs are used to sell digital art and collectibles. The new way to exchange collectible assets ranging from playing cards to famous works of art.
NFTs clearly benefit artists who produce digital media. Before NFTs, it was very difficult to verify the authenticity of digital media, as anyone could copy and paste the file.
However, not all NFTs are valuable, and there are clear pros and cons to NFTs.
At the beginning we said that NFTs are a type of cryptoasset, since they have a value in cryptocurrencies and work in a very similar way to cryptocurrencies. Even so, there are some differences worth pointing out.
The first is in the name, NFTs are non-fungible, i.e., unlike cryptocurrencies, which are fungible, they cannot be replaced by another identical token with the same value. To understand each other, 10 Bitcoin or 10 Ether are worth the same as 10 Bitcoin or 10 Ether, even if they change hands (without going into their value at the exchange rate in other currencies). But an NFT of a digital artwork is unique and its value cannot be equivalent to that of a different digital artwork, because they are not the same.
The second is that NFTs are indivisible; the NFT is purchased whole and cannot be divided, as is the case with cryptocurrencies. That is, you can buy one NFT and sell that same NFT, but not its half. However, you can buy 1 Bitcoin and sell it in two parts, 0.5 Bitcoins each.
Finally, cryptocurrencies are a type of digital currency, which can be bought, sold or mined. NFTs are not currencies, but digital assets and, yes, they can be bought and sold, but not mined. Now, what can be done is to create an NFT or tokenize a digital content.