Create an NFT Using the OpenSea Marketplace

February 2023

NFTs are a relatively new asset class with "Quantum", the first NFT, hitting the scene in 2014. They have become the rage of the crypto token space. But what exactly is the big hype and how do you join the party? This article will give an overview of NFTs and NFT metadata. It will introduce you to OpenSea, a leading NFT Marketplace, and walk you through the steps for creating an NFT using the OpenSea platform.

What is an NFT

In the world of blockchain, NFTs fall under the category of cryptocurrency. Cryptocurrency is a digital asset that offers the holder some benefit. They reside on a blockchain and adhere to the standards of their particular decentralized network. There are two forms of cryptocurrency: coins and tokens. Coins operate on their own blockchain. Coin developers are responsible for setting network standards, building the infrastructure, and maintaining their blockchain. Tokens do not operate on their own blockchain. Instead, they utilize the network standards and infrastructure of smart contract enabled blockchains. Only those blockchains with smart contract capabilities can be used to issue tokens. Thus, there is a parent-child relationship between these coins and tokens.

Coins, fungible tokens, and non-fungible tokens (NFTs) are all assets. However, an NFT is a special kind of token. It is a token carrying unique identification code and metadata which collectively distinguishes one token from another. That is why these tokens are labeled "non-fungible." Coins and fungible tokens are not uniquely identifiable. Forbes writers Robyn Conti and John Schmidt explain this non-fungible characteristic best in the article "What Is An NFT? Non-Fungible Tokens Explained".

Physical money and cryptocurrencies are "fungible," meaning they can be traded or exchanged for one another. They're also equal in value- one dollar is always worth another dollar; one Bitcoin is always equal to another Bitcoin. Crypto's fungibility makes it a trusted means of conducting transactions on the blockchain. NFTs are different. Each has a digital signature that makes it impossible for NFTs to be exchanged for or equal to one another (hence, non-fungible).

The digital code of an NFT can contain references to digital files such as digitized artwork, photos, videos, and audio. Domain names can also be NFTs. NFTs can be owned and the details of this ownership is recorded on the blockchain. Like any other asset, ownership can be transferred to another which makes NFTs tradable.

What is Metadata?

Metadata is "data" about data. It provides snapshot information about the data being presented. For example, information like a title, an author's name, or a description of the data are all considered metadata. Metadata can either be stored on the blockchain as part of the smart contract's encrypted code (on-chain) or outside of the blockchain (off-chain) separate from the underlying contract. The benefit of on-chain metadata is that it is included in the contract's content encryption, a major feature of the blockchain. On-chain metadata supports the uniqueness of an NFT. If, however, the holder of an NFT needs their metadata to be editable, they must have their metadata file stored off-chain. This means that the metadata cannot be a part of the contract's encryption. It is recommended that NFT holders of off-chain metadata freeze their metadata prior to listing their NFT for sale. Freezing metadata makes it uneditable. Although the NFT is still considered "off-chain", the metadata is permanently locked and stored on a decentralized file storage system.

Minting an NFT

The "creation" of an NFT should be distinguished from "minting" an NFT. Minting an NFT means to publish your token on the blockchain making it purchasable. You are stamping or casting your NFT onto the blockchain. Marketplaces like Rarible, OpenSea, or Zora allow buyers and sellers to come together to trade NFTs. NFTs not yet minted, are stored off-chain.

There are also fees associated with minting that do not apply during the creation process or even the listing process. Blockchain transactions are not free. Minting is a blockchain transaction. Therefore, you will be charged each time you make changes to the data you store on the chain. These charges are referred to as "gas fees."

To explain further, let's take a look at the well-known NFT platform OpenSea. OpenSea allows creators to "make" NFTs without any upfront gas cost. They call it lazy minting. It is an OpenSea feature that utilizes the blockchain network for the on-chain issuance of your NFTs based on the metadata. When you want to list your NFT for sale, OpenSea will charge a small publishing fee which you will pay using your crypto wallet. However, the NFT that you have created is not yet on-chain (on the blockchain). According to OpenSea, it is not until the first purchase or transfer is made that your NFT is transferred on-chain. It is then that your NFT is actually minted onto the blockchain. When you create an NFT using OpenSea, it will be visible on other platforms only after the minting.

What is OpenSea?

All this talk about OpenSea. What exactly is OpenSea? OpenSea is an NFT marketplace. Founded in 2017, it is where artists and NFT holders go to create and trade their digital assets either through an auction or using a fixed sale price. The company currently reports having more than 2 million collections, over 80 million NFTs, and a sales volume of $20 billion USD.

Browse the OpenSea website and you will find notorious NFT Collections like CryptoPunk and Bored Ape Yacht Club. Visit today and begin creating your own NFT collection.

Gas Fees

While there are no fees associated with creating NFTs, there are as a general rule fees associated with both the initial minting process and subsequent blockchain transactions. As previously stated, these are gas fees.

Steps for Creating an NFT on OpenSea

Before creating your NFT, or even to setup an NFT Account, you must first have a crypto wallet. To learn more about crypto wallets, review the OpenSea tutorial on wallets.

Next, you will need to create a collection. Once the collection is setup, you can create an NFT item to add to the newly created collection. The steps for creating both the NFT Collection and NFT item are outlined below. You can also watch the 3-part video on Creating an NFT Using OpenSea. The videos are embedded below.

Create the NFT Collection Page

The steps for creating your first collection is as follows:

1. Go to the Opensea.io website.
2. Click on your Profile Icon.
3. Navigate down to My Collections and select. If this is your first time creating a collection, the page will be blank. Once you create a collection, it will be listed on the My Collection page.
4. Click Create a collection.
5. Upload the following:
   
   1. Logo image- This image will also be used for navigation.
   2. Featured image- This image will be used for featuring your collection on the homepage, category pages, or other promotional areas of OpenSea.
   3. Banner image- This image will appear at the top of your collection page.
6. Enter your Collection's Name, Customized OpenSea URL, and Description.
7. Enter your Collection's Category and Tag information.. This information can make your NFTs more discoverable on OpenSea. You can choose up to 5 descriptive tags. Your category and tag(s) will be visible on OpenSea collection and item pages.
8. Add Social Media connections and links related to your project.
9. Indicate, if desired, Creator Earnings. Collection owners can collect creator earnings of up to 10% when a user re-sells an item they created. Simply provide the wallet address for payouts. For future changes, contact the current collection owner to revise the collection earnings percentage or the payout address.
10. Blockchain- Select the blockchain where you'd like new items from this collection to be added by default.
11. Payment Coin- These tokens can be used to buy and sell your items. ETH and WETH are the default coins and tokens.
12. Display Theme- Select a theme format .
13. Explicit & Sensitive Content- If applicable, flag your NFT as Explicit & Sensitive Content. It is mandatory as a creator to mark your collection and items as explicit and sensitive particularly if they contain nudity and pornography. Such content will be handled differently than other content in search results to protect users with safe search enabled while browsing OpenSea. While OpenSea allows the creation and sale of such content, it reserves the right to label it as explicit and sensitive content.
14. If desired, indicate Show OpenRarity Ranking. This can only be Enabled once all artifacts are finalized.
15. Review thoroughly. When you're ready. Click Create.

The Collection is now created and can be viewed on the My Collections page.

Create an NFT for the Collection

After creating a collection, you are ready to create the NFT. Follow the steps below.

1. Go to the Opensea.io website.
2. Click on the profile Icon.
3. Navigate down to the Create tab and Select.
4. You may be prompted to sign your wallet. Review and Sign it.
5. Upload the file (Image, Video, Audio, or 3D Model). Use one of the file formats specified.
6. Name the NFT Item.
7. Provide a Description of the NFT. The description will appear beneath the image when displayed on OpenSea.
8. Select the Collection in which the item should be placed. The drop-down screen should contain the Collection you previously created.
9. Now it's time to add some traits to the metadata. Traits are what builds rarity in an NFT. Rarity helps to drive the value of the NFT. Traits can be categorized as either textual or numerical. Properties are textual traits while Levels and Stats are numerical traits.
1. Add Properties to the metadata. Tokenized, an expert in the space, explains in an article that "Properties are textual traits that are usually used to describe elements or parts of the object or character in the NFTs image." For instance, if the image is of a female Rabbit wearing a pink hat, indicate so in the properties section. According to Tokenized, the more commonly used properties for avatars are as follows:
   
   1. Background
   2. Body
   3. Skin Tone
   4. Clothing
   5. Hair
   6. Eyes
   7. Mouth
   8. Head Gear
   Although the list was specifically written with avatars in mind, you can incorporate these properties into an NFT displaying any human image or non-human image that has been personified.
2. Add Levels if applicable. Tokenized further explains that while Properties are textual traits, levels are numerical traits used in NFT collections and usually represent the strength or impact of a given trait. They are displayed in the form of a progress bar and can be used for things like ranking or any calculated state.
3. Add Stats if applicable. Stats are similar to levels but are displayed in raw numerical format (not as progress bars).
4. Indicate whether the NFT will include Unlockable Content. Unlockable Content is content that is only accessible to those who hold a particular NFT. Such content can be anything. Higher resolution versions of the NFT's image, video content, access to secret communities, or even simple discount codes are all potential forms of unlockable content.
5. If applicable, flag your NFT as Explicit or Sensitive Content. It is mandatory as a creator to mark your collection and items as explicit and sensitive particularly if they contain either nudity or pornography. Such content will be handled differently than other content in search results to protect users with safe search enabled while browsing OpenSea. While OpenSea allows the creation and sale of such content, it reserves the right to label it as explicit and sensitive content.
10. Add the Token Supply. This is the maximum supply ("hard cap") of your NFT. This information will be encoded in the ID of the NFT. This allows the smart contract to check whether any more tokens are allowed to be minted.
11. Select the Blockchain for the NFT. A drop-down menu is provided.
12. Determine whether you want to Freeze the Metadata. This is a vital step. Freezing your metadata will allow you to permanently lock and store all of this item's content in decentralized file storage. At this point the metadata can no longer be edited. Think carefully before Freezing.
13. Review thoroughly. When you're ready. Click Create.

The NFT is now created and can be viewed under the applicable Collection.

Listing the NFT and Making the Sale (IMPORTANT)

Remember that you still must list your NFT and either make a sale or transfer it to another wallet for your NFT to be minted to the blockchain.

Conclusion

NFTs are gaining traction in the crypto community, and with good reason. They offer an innovative new spin on the blockchain concept. If you're thinking about using NFTs, make sure you choose a reputable platform. OpenSea is one of the many platforms available. Alternatives include Rarible, NBA Top Shot, and Nifty. No matter which platform you select, be sure to read the platform's guidelines carefully. Also, don't forget that NFTs are not just for art. Image, Video, Audio, or 3D Models are all included in the OpenSea NFT landscape. This crypto asset can meet the needs of all kinds of creators. It might be time for you to join the crypto community and create your first NFT. Perhaps it will be the creative outlet you've been looking for.

For more articles related to blockchain technology, see the following articles:

• Fully On-Chain NFT Art: Using SVGs for Smart Contracts
• What is the Difference Between a Coin and a Token?
• A Beginner's Guide To Using a Cryptocurrency Block Explorer
• A Deeper Look at Non-Fungible Tokens (NFTs): History, Creation and Marketplace
• Top 8 Technology Trends: Technology to Know
• A Guide to Understanding NFT Domains and the Decentralized Web
• Exploring the ABCs of Blockchain Technology: Cryptocurrencies, NFTs, Smart Contracts, & Web3

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Sources:

Are my NFTs visible on other platforms? (n.d.). OpenSea. Retrieved February 4, 2023,

ARTESSERE. What Does it Mean to Mint an NFT and How Do You Do It? (n.d.) Retrieved February 4, 2023. Can I list an item without paying to "mint" it? (n.d.). OpenSea. Retrieved February 4, 2023.

Conti, Robyn. What Is an NFT? Non-Fungible Tokens Explained. Forbes Advisor, 8 Apr. 2022.

Heidorn, C. (2022a, June 18). Explained: The 4 NFT Properties OpenSea Supports. Tokenized.

Heidorn, C. (2022b, October 6). The Ultimate NFT Traits List: Ideas for Your Next Project. Tokenized.

Is explicit & sensitive content allowed on OpenSea? (n.d.). OpenSea. Retrieved February 4, 2023.

OpenSea NFT Marketplace. (Official OpenSea Website)

OpenSea Tutorial on Wallets. Official OpenSea Website

What are 'Levels' on Opensea. CryptoChronicle.io, 22 Apr. 2022

What fees do I pay for my first listing? (n.d.). OpenSea. Retrieved February 4, 2023.