How to create NFTs on Cardano?
What is an NFT?
NFTs (non-fungible tokens) are unique digital tokens stored on a blockchain. The public blockchain represents someone’s ownership of a digital asset or tokenized version of real-world assets. While one can easily download the replicated version of the digital assets, only the person who bought the asset can have the original ownership. With time and increasing demand for the NFTs, other blockchains have also begun allowing the creation of NFTs, the NFT marketplace, and its other utilities.
Why Cardano blockchain?
Cardano is a third-generation, open-source, and decentralized public blockchain platform that runs on a highly secure Ouroborus protocol developed by Cardano, and it achieves consensus through proof-of-stake. It facilitates peer-to-peer transactions across the blockchain network. It focuses on addressing the challenges of first and second-generation blockchains. Simply put, Cardano achieves scalability, interoperability, and sustainability to stand out from the robust competition within the blockchain space. With Cardano, anyone can get a resilient infrastructure for developing decentralized financial and social applications.
How to Create NFTs on Cardano?
Follow these steps to create NFTs on the Cardano blockchain.
Ownership of a Cardano node.
Basic knowledge about Cardano CLI and its terminologies
Ownership of at least 2 ADA
Now, let’s move to the steps for creating NFTs.
Step :1 The first step is to create a new payment address that requires users to generate two keys; verification key and signing key.
Step:2 Generate a payment address once you generate both the keys.
Step:3 After the payment address is generated, start processing the display of the file content.
Step:4 Now, verify the current URXo of your address after you complete the display processing.
Step:5 Next step is to fund your address since you didn’t have any transaction with the above address.
Step:6 Once done, check the UTXO again.
Step:7 After checking the UTXO again, process the current network parameters’ export to a separate file.
Step:8 Now, create the policy that generates and burns tokens. Here, the policy id and token name identify the token, while the token title is unique to the policy id.
Step: 9 After the policy generation, calculate the transaction fees.
Step:10 Now, build the transaction fees after calculating the transaction fee.
Step: 11 Once you create a transaction with a fee, pross the signing of the transaction. In the next step, submit this transaction.
Step: 12 After submission, check the UTXO balance to reflect the newly minted tokens.
Use cases of NFTs are diverse. Similar to the non-fungible tokens, leading open-source blockchain platforms also offer NFT marketplace development. The whole idea here is to cater to the needs of different industries other than art and digital collectibles. Moreover, the native abilities of NFTs, including their potential to provide buyers with a sense of ‘true ownership,’ have unlocked great opportunities for banking, finance, digital commerce, and even entertainment industries
By this, you complete this workshop successfully!!