Music NFTs For Beginners
1. What are NFTs?
A non-fungible token (NFT) is a unique and non-interchangeable unit of data stored on a blockchain, a form of digital ledger. NFTs can be associated with reproducible digital files such as photos, videos, and audio. NFTs use a digital ledger to provide a public certificate of authenticity or proof of ownership, but do not restrict the sharing or copying of the underlying digital files. The lack of interchangeability (fungibility) distinguishes NFTs from blockchain cryptocurrencies, such as Bitcoin. (Wikipedia: read more)
Fungible items are mutually exchangeable. For example, cryptocurrency is a fungible token. You could exchange 1 bitcoin for a different bitcoin, and still have essentially the same thing: 1 bitcoin. In contrast, Non-fungible means the tokens cannot be interchanged with one another. This is because non-fungible tokens can represent many different types of digital assets – you can’t exchange an NFT artwork for an NFT video and still have the same thing. (Mintable: read more)
2. What is the underlying technology for NFT - The Blockchain?
A blockchain is a distributed digital ledger that leverages peer-to-peer networks. A digital ledger is a record of information that is stored digitally on a computer. 'Distributed' means that records are processed and stored on multiple computers in the network at the same time. The blockchain differs from traditional centralised databases, where information is processed and stored on just one server. (Mintable: read more)
3. Why is NFT valuable? Why NFT music?
NFTs are "one-of-a-kind" assets in the digital world that can be bought and sold like any other piece of property, but which have no tangible form of their own.
A. NFTs allow true ownership of digital assets.
B. NFTs make it easy to prove the authenticity of a work.
C. NFTs have provable scarcity, without counterfeit issues like the physical goods.
D. NFTs cannot be damaged or tampered with, unlike physical collectibles. NFTs are stored on the blockchain forever.
E. NFTs enables the creators to receive resale royalties directly in perpetuity.
NFTs put power back in the hands of creators. It allows creators to sell directly to customers, thus cutting out middlemen. (Mintable: read more)
For example, a music mp3 or Wav file can be replicated infinitely, whereas NFTs are finite. Scarcity creates demand and its desirability.
4. Centralised v.s Decentralised
Centralised: Three main issues with a centralised system:
-You have to trust that the centralised organisation are going to keep your data safe
-They have full control over the system and your data
-If the main servers are compromised, data is at risk
Example: Facebook, YouTube, Twitter, your bank account, or practically anything else that you use — these are all controlled by a centralised authority. (Read more)
The blockchain technology. By storing data across its peer-to-peer network, the blockchain eliminates a number of risks that come with data being held centrally.
Decentralised meaning you and everyone else can verify you own something. All without trusting or granting custody to a third party who can impose their own rules at will. It also means your NFT is portable across many different products and markets.
Secure meaning no one can copy/paste your NFT or steal it. (Read more)
Example: Bitcoin, Ethereum, Solana etc.
5. What are Web1.0, 2.0 and 3.0?
Web 1 - Listen/Read
Web 2 - Listen/Share/Write
Web 3 - Listen/Share/Write/Own
There are a few fundamental differences between web2 and web3, but decentralisation is at its core.
Web3 enhances the internet as we know it today with a few other added characteristics:
Verifiable, Trustless, Self-governing, Permissionless, Distributed, Stateful, Native built-in payments.
(by Nader Dabit)
6. Zero-Sum game v.s Positive-Sum Game?
Web 2: I win.
Web3: We win.
Zero-sum game is a mathematical representation in game theory and economic theory of a situation which involves two sides, where the result is an advantage for one side and a loss for the other. Web 2 culture: zero-sum game, competition, scarcity mindset. Web3 is driven by community, collaboration, creating value and abundance mindset, which is known as positive-sum game: we can all win together.
7. What is an 'Airdrop', 'Free mint' and 'Free + Gas' NFT?
'Airdrop': Receiving an airdrop means receiving tokens or NFTs for free.
'Free Mint' also as known as Free NFT + Gas Fee: it means you will need to pay gas fee (usually pricey in ETH) for the network so far.
8. What does 'Edition' in NFT mean (e.g. 1/1 NFT or 1/3, 1/10 NFT)?
1/1 NFT means there is only 1 of a particular digital asset in the entire universe forever and ever. 1/3 NFT means there are 3 tokens of a particular digital asset available, and so on and so forth.
9. The difference between a 'coin' and a 'token'?
The two most common blockchain-based digital assets are cryptocurrencies and tokens. The biggest difference between a cryptocurrency and a token is that cryptocurrencies are the native asset of a blockchain like BTC, RBTC, or ETH, whereas tokens are built on an existing blockchain, using smart contracts. Most commonly, these are EIP-20 tokens.
10. How to Save Gas Fees on Opensea (ETH)?
Here's an easy hack on setting low gas fee and save your bucks: CLICK HERE
A. How to Buy NFTs on OpenSea with MetaMask (2021) [FULL STEP-BY-STEP GUIDE]
B. How to set up a Metamask Wallet to receive NFT on ETH blockchain ?
Please note: You can only send and receive cryptocurrencies and NFT on the same blockchain. For example, you need a Metamask wallet to send and receive, buy and trade NFTs on ETH blockchain. You will need a Phantom wallet to buy, trade, send and receive NFTs on SOL blockchain.
There are many Youtube tutorials that show you how to open a wallet to buy, sell and receive NFTs. I found a video for you to follow through: https://www.youtube.com/watch?v=Af_lQ1zUnoM
C. How to Make and Sell an NFT step by step
D. NFTs, Explained