hey everyone welcome to the course on nfts in this course we're going to teach you everything you need to know about nfts you're going to leave this course thinking hey i know everything there needs to know to have a solid foundation when it comes to nfts now nothing in this course is considered investing advice be aware of that but we'll be teaching you all of the basics since nfts is such a hot topic and how to navigate the nft space now the goal of this course is to learn about nfts to understand the uses of nfts because there are many uses right now we're seeing one predominant use being digital art be extremely popular but there are many uses for nfts and then we're going to show you how you can mint and sell your own nfts on a marketplace to simplify it we're going to take you through everything that is nft right now but we're also going to break down hey what what is this nft concept what can i do with it and so at first we're going to dive a bit deeper into learning about nfds we're going to focus on the what the why the how and by doing that we'll create a strong foundation about this concept of nfts because it's broader than the use case that is being used for today which is digital art and then once we zoom in on that we'll be taking a look at understanding the uses because there are more uses than what we're seeing right now we're going to say hey what uses are there why is digital art so popular and then we're going to say hey what powers the use of digital art we're going to take a look at how is this happening what's behind the scenes right and then by understanding that we can then zoom in on hey how do i mint and sell my own nfds we'll talk about what is minting how do i mint and what platforms can i sell on right because this is intended to be a foundational course let's take a look at nfds let's zoom in on a lot of things that go into nfts and then let's figure out how we can get into the market and by doing that we can strengthen our understanding strengthen our position and really start to gain more in-depth interest into the industry and jump start our adventure into nfds let's jump right into it now you're asking yourself okay what is a non-fungible token you know you're kind of looking like huh well we're coming to this course to kind of better understand that and so let's jump straight into a definition right an nft stands for non-fungible token now what is the meaning of this what does this actually mean well it is proof of ownership of an asset okay proof of ownership of an asset what type of asset well any asset really doesn't really matter right now we're looking at assets that are predominantly digital right but in theory it could be any asset at all an nft is just a token that says hey i have proof of ownership of this asset okay non-fungible what does that stand for okay so we know that the token is the unique part you know it says hey this is the ownership but why is it called basically a non-fungible token well non-fungible refers to the fact that it is unique and cannot be replaced interesting okay so the non-fungible part refers to the fact that the asset or thing or whatever it is is unique and cannot be replaced okay wait what mo what did you just say huh the asset cannot be replaced well let's look at some examples last video we ended on the question of what is a non-fungible asset right because a non-fungible token is supposed to represent the uniqueness of a non-fungible asset it's supposed to represent the ownership of that non-fungible asset okay so we landed on what does fungibility actually mean right and so it's best explained through examples if we look at asset examples and these asset examples aren't necessarily fungible non-fungible solely in a digital space we're looking at it holistically if we were to look at a fungible asset we would be talking about cash bitcoin because one dollar is equal to one dollar right when we exchange one dollar for one another the value stays equal and the same is true for bitcoin okay so i hear you saying like mo but like okay one dollar is one dollar is one dollar right and one bitcoin is one bitcoin so if i have this bitcoin or that bitcoin it doesn't really matter okay got it so that's fungibility yes if the asset itself can be exchanged in likeness in value it is fungible now there are gray areas here and we'll get into those later on but then let's take a look at non-fungible assets and i took some time to jot down a couple of examples here one can be watches right another could be plane tickets and yet another could be stamps okay let's zoom in a bit more and let's see why these are defined as non-fungible but let's go back to this real quick if we look at cash you know and we're looking at trading a dollar for a dollar a dollar for a dollar is in likeness because a dollar's value remains a dollar irregardless of the serial code that's printed on it you know where it was produced a dollar is a dollar you go to a store you pay with a dollar a person will accept a dollar therefore it is a fungible asset the exact same is true for bitcoin it is a fungible asset now that's weird right well no it's a digital currency it's still a currency therefore it has all the hallmarks of a fungible asset now to date we aren't really using it as much as a currency right like you can't walk into your local mom-and-pop shop and you know spend the bitcoin and like they accept it there are certain companies that accept transactions for bitcoins like tesla but it doesn't have mainstream adoption as a currency yet so currently in the tax code often it's looked at as an asset class so there's weirdness here but one bitcoin is equal to one other bitcoin irregardless of its serial code here right doesn't matter if you had the first bitcoin never mind or the last bitcoin of our mind the value of one bitcoin is equal to the value of another bitcoin so then we get into the non-fungible territory right and we get into this area where we're like well what is what like why is a watch non-fungible well if you look at it right on the left you can see a gold very pretty watch here on the right you can see a very bland watch now if we assigned an asset class to this like for instance this one was a rolex and this one was just you know a regular casio well there's immediately a value difference in the money you paid but right you buy a casio off the shelf for a hundred dollars you're not going to go to someone and exchange that in likeness for another casio because the watch itself has devalued it hasn't retained value it's devalued because you've worn it you've it's not a collector's guide so you can't say that you can go trade ocasio for a rolex because a rolex you know if we look at rolex itself it usually appreciates it goes up in value regardless of if you wore it depending on the type you had and whether or not you did something to it and the serial codes here matter if you have a rolex that was made 50 years ago let's say you had a rolex daytona and then you had a rolex daytona that was made in 2021 the values are not alike they're both daytonas don't get me wrong they're both daytonas right they're the exact same model so why is one worth more than the other because there's an intrinsic value that we as a community give to it which makes it non-fungible i can't just go and say hey you give me your new dayton i'm gonna give you my old daytona it's not a fair trade it's not like a dollar for a dollar no no no not at all and the same is true for stamps or plane tickets right have you ever met a stamp collector well a stamp made in the 1960s is not equal to a stamp made today and the same is true for a plane ticket if we got a business class plane ticket the aisle versus the window seat they can't be traded in like because at the end of the day it's the person himself who determines like oh i'd rather have aisles so i'm rather willing to pay more for it right so there's nuances here that determine non-fungibleness and the same is true actually for cash right because just like stamp collecting you could do coin collecting and i remember when the euro came out back in the 2000s people were collecting coins like crazy because certain emblems were custom printed on it in limited runs and therefore the value of a two euro although if you went to spend it in the store would be accepted as two euro within the trading community the value of that two euro coin could be way more than the actual face value of the coin and that's what determines non-fungibleness it's what are we willing to give to it as a value and is it unique to us or not right so let's get into some of the characteristics here the key traits well for something to be non-fungible it has to be unique so you know like rolex in a limited run like the coins in a limited run needs to be irreplaceable right the first daytona ever made is always going to be worth more than the second daytona rolex ever made non-interchangeable swapping them doesn't equate an equal value and that is the key trait of something that's not fungible okay so we know what makes something non-fungible but then we go back to the coin example fungible versus non-fungible because cash was fungible but then i talked to you about coins the value of an item and its use determines whether it's fungible or non-fungible outside of the traits right so the value we assign to it also has to be tied into it it's not just the key traits like we could assign all of these key traits to a bitcoin right the first bitcoin ever printed has a serial code it's unique it's this that the other but also it's the value we assigned to it that's why a coin collected in 2000's that was a euro at face value is 2 euro but in the collective space can be worth way more and that's what makes fungible versus non-fungible so difficult to distinguish and that's where nfds come in right when we're talking about these non-fungible items the token represents the ownership of that non-fungible item in modern days like if we go back to our example right when you buy a rolex what's your form of ownership like what determines all of this right why do we need non-fungible tokens that why we need to look a bit deeper into now that we know what nfts are right and what the difference is between a fungible and a non-fungible asset we inevitably have to ask our question why why do we need nfts to do anything at all what is the purpose of us saying okay well we know what a fungible asset is we know what a non-fungible asset is but why do we need these tokens to define ownership right and you know at the end of the day that's a great question so let's talk about purpose right let's talk about purpose in a digital world in a digital world ownership was never clearly defined what do i mean by this never clearly defined well honestly like when i bought something i knew i was the owner of it yeah you knew but was it public did you have the sole rights to that item is it traceable right all of those things just like owning a watch i know that's my watch i know that i bought that watch and therefore that is my watch right yeah but like what actually makes it your watch is it tracked in a database somewhere does rolex keep a database of the serial number against the person who bought it maybe they do maybe they do and that will define ownership right the serial codes often do the fine ownership but only if they're tracked against the purchaser okay so in a digital world do we get serial codes on things well think of a time where you bought a domain name a game skin a ticket right just purchasing online in general makes all the difference in the world because you know you're purchasing a domain name is very traceable right like i can is tracking this person bought it and we have who is guard so there is a database tracking who is the rightful owner of the domain name can i resell it not really well i can resell my domain but there's no real mechanism for it it's more so a transferability aspect and then someone you know pays me for it there's no real online mechanism that really warrants that in an easy to use way think of a game skin have you ever played fortnite although you buy that skin you know it's linked to your account therefore there is a form of ownership right a certain form but can i go and resell it on ebay can i take that skin and you know turn a profit it's quite difficult no i inevitably asked the question do you actually own it and ownership means that you can freely resell the good you own right it does mean that right like if i own something like if i buy a watch i have the physical good i go to a store i say hey how much and they give me money and i give them the watch if i buy a game skin online on fortnite or whatever other game you may play doesn't have to be fortnite but any game at all it's really difficult to resell it like i can't just go and put a price tag on it now there were certain games in the past that allowed this ability of reselling skins right there was the cs go stuff that went on and there have been ways of doing this right but all of those ways were kind of proprietary like they weren't unified think of it like this a marketplace to sell these digital things was usually built custom to the asset that was being sold so there was no unified way to track ownership of any digital good whatsoever it doesn't matter what it is and that exactly is what nfts are trying to solve the right to ownership the right to resell and they're enabling that through different mechanisms and those mechanisms we'll talk about but the why of nfds the why is the ownership part the ownership being very strict and through that ownership enabling ways to clearly define that resellability because when we ask ourselves what's my proof today is it an email is it like a thread is it the serial number yeah maybe maybe it's all of those things but is it publicly traced no is it clear no and all of those questions all those problems are what nft as a technology is trying to solve now if we take nft as a technology right just the raw technology like the concept of an nft the token that represents the non-fungible item that is the why that's the ownership part and then through that through that concept we get into all right how do i enable that and that's when we enter blockchain a decentralized ledger right blockchain technology again a technology that enables other concepts other technologies to build upon it and that's what we'll zoom in on but what i want to end on is that the why of non-fungible tokens is for that proof of ownership and through that proof of ownership having that token being able to say i own this asset and being able to enable marketplaces tradability resellability all of those things we can do that now because the concept is there a generic concept not a proprietary concept where call of duty has its own marketplace and fortnite has its own marketplace that means every company needs to build their own proprietary system nfds enable a generic system that everyone can build upon it doesn't matter what company leverage the generic blockchain technology and enable resellability without needing to build all of these systems in a closed off way now we ask ourselves the question how do nfds work right we've answered the question what are they we've answered the question what's fungibility versus non-fungibility and we've answered the question why do we need them but how would nfts operate in reality right because it's a concept it's a protocol of sorts right it's not really a physical representation of anything the concept is the concept nft is a concept a non-fungible token but now we have to get to well how would people implement that and so we get over to the blockchain right the blockchain powers nfts the blockchain technology is the backbone that we are going to implement nft's on as a society okay that is the blockchain and so when you ask what is the blockchain there's a lot of things that the blockchain is and a lot of things that it provides but at the end of the day blockchain is a type of decentralized storage think of a database that is sharded into a million little blocks and copied across multiple different systems and everyone keeps a ledger of that data blockchain is type of decentralized storage and is again in itself a concept kind of like nfts and it's down to the actual implementation to determine okay this technology as a concept what do we do with it how do we build it and from that we got ethereum we got bitcoin we get all of these other different coins with different tokenomics that are all built on the same backbone that is blockchain but don't get it twisted just because all these different technologies are built on the blockchain doesn't mean that they all have the same value right that's why bitcoin has different economics than ethereum bitcoin you have to mine every token and there's a finite amount ethereum is kind of like the oil of the blockchain industry you burn it in order to get things done right and by burning it you spend energy so blockchain itself is the decentralized storage portion with a bit more on top of it and a bit more nuance but the technology of blockchain is that decentralized storage portion and so then you ask yourself well what are we getting out of the blockchain right and so that itself is we are getting interoperability trade ability immutability liquidity and programmability those are the things that we want to get out of the blockchain for nfts specifically if we want to have non-fungible tokens if we want to have ownership of assets on the blockchain right if we want to have true non-fungible tokens ownership of a good on the blockchain we need interoperability trade-ability immutability liquidity and programmability let's zoom in on those let's zoom into interoperability interoperability is the ability to exchange the nft across ecosystems right so if you buy an nft non-fungible token which could be a deed for a house could be a digital art could be anything if you buy it on the ethereum network shouldn't you be able to sell it and send it in some way shape or form to the bitcoin network now this is like long-term thinking right but like an nft as a concept is just the token the blockchain technologies should be able to accept that token wrap it in some way hold that information because it's just data at the end of the day right we just need to be able to accept and understand the data that is inside the nft on different chains in order to store that data but it depends on how they program that ecosystem how they program that blockchain what the blocks can hold right and so true interoperability is like a long-term vision right but interoperability could also mean other things like the ability to hold it in different wallets the ability to hold the nft or like buy it on different marketplaces understanding and keeping that in mind the next thing we would need is immutability right nft should be undevisable or indivisible rather and should be unique so there could be copies of an nft right there you could have a hundred like digital artworks that are the same exact artwork but they're not divisible like you can't split one and two you also can't have a direct copy of one the first one minted versus the last one minted it could be a different serial number and that could add to its unique value they're not unique in the sense that they can't be the same thing but they're not the exact same data right so immutable means the blockchain records the data in a way that makes it hard to change okay so blockchain already has this as a concept built into the decentralized storage mechanism so we're getting that out of the blockchain technology great when we go further for an nft ecosystem for true ownership we need tradability we need the ability to trade freely on open market places and we're getting closer and closer to this right so tradability is like being able to put it on ebay right and then sell it or put it on for like swap or trade and with digital assets we need that concept to be baked into the ecosystem but we're trying to build a holistic ecosystem the game fortnight or the game cs go they want their own marketplace and we're going to put interoperability and tradeability well you don't have a true interoperability because you're not going to take a skin from cs go and play it in fortnite and we don't have true tradeability because you're not going to swap a skin from fortnite for anything in the cs go if we get to true nft space where we could have digital assets that are completely unique and then every one of these ecosystems these games hook into it right then they could take a digital asset they could create a tradability mechanism where they would evaluate the value of a skin when you put in the skin from a different game and you want to trade it for csgo coin if they ever made it and then you could actually swap your skin for currency in that game and you could continue and then you have true value retention of your digital assets to give you an example right i spent over a thousand euro on league of legends throughout my 10 years playing all of those skins i don't know in a single one i can't trade them for value anywhere else i don't actually even technically own them if i don't use my account i don't really retain the value of that digital asset right it's just there it's just money that i put in there but if we get to true tradability space where league of legends opts to turn its coin mechanism you can purchase coins in the game into a true token and then built on the blockchain and then builds against multiple nft contracts the ability to trade right and then puts the skins in league of legends as an nft then i could potentially trade my skins on an open marketplace with other people and i have some unique skins some things you can't get right and the value of those skins right is next to zero because well they're kind of locked away right i don't have that tradability aspect so very important things to think about here when we zoom in then we have liquidity transfer nfts into tokens for liquidity just like i talked about when you know tradability is swapping one nft for another nft of rather equal value or that's just the concept of trading this liquidity is the same but trading it into liquidity right which could be another token right if i wanted if i owned nft like my skin and i wanted to liquidate it like in the real world you go to a pawn shop and you'll be like here take this and they'd give you cash in return well what if i wanted ethereum or bitcoin for my thing there could be marketplaces where they would buy it off of you and you could transfer it into liquidity right you could sell your skins instead of having to trade them for equal value for other people right and could you trade them for equal value well the trade would be up to the two people trading to be like i'll take this league of legends skin for the cs go skin or whatever the case would be with the tradability concept and liquidity concept you need to put a dollar value to the nft and it needs to be able to be purchased whether that could be selling on a marketplace or that could be selling to the marketplace where they have a system to buy it off you right liquidity is just transferring into token ethereum bitcoin cash usdt whatever it may be okay and then the final thing for nfds to truly exist in the form that they need to be ownership of a digital asset we need programmability and what does programmability mean well we need the ability to embed code in the nft to make it smarter if it's just raw data right if it's just raw data great we can hold the catalog of what the thing is but now if it can contain code right if it can contain actual things that can be executed now we can make it much much smarter right we could have it execute certain things at certain times of the year to yield something right whether it be dividend in a stock right that's quarterly thing that happens so the programmability aspect makes it possible for you to embed things into the nft that make it a bit smarter than just flat data ethereum powers nfts now that we know how the blockchain fits into all of this now that we know what nfds are why we need them how they work now we need to look at the real world implementations of this right and that's where we're looking at ethereum because ethereum is where the majority of nfts live today now there are other solutions out there for nfts but we're going to focus on the mainstay here now inevitably you'll have the question maybe if you're not familiar what is ethereum and we could make an entire course on ethereum itself right the token that is counter to bitcoin right now the way that i put it is if bitcoin is the gold standard and by gold standard i mean like gold right like the equivalent of gold in the real world of the cryptocurrency market ethereum is more like the oil or the coal we need to burn it in order to do stuff so what does that mean well ethereum powers a lot of different things and is a lot of different things it's instantly send and receive money it's financial freedom you can build decentralized apps on it you can do peer-to-peer stuff there's the ability to build marketplaces on top of it ethereum is able to power what people want as a standard as long as you're willing to burn ethereum to accomplish something right so as long as you're willing to burn the token as a gas they have a whole network and development guy that can teach you how to do a ton of different stuff but the part we need to zoom in on the part we need to zoom in on about ethereum so that we can better understand how nfts are implemented is that ethereum is a programmable blockchain a programmable blockchain what is that what does that mean well put in simple terms it means that ethereum has a concept right because it is a blockchain it's a technology that's running somewhere in a decentralized way ethereum allows you to take code that you wrote right code and it allows you to deploy it on the ethereum network on the blockchain and execute it now that doesn't mean you can write any code possible in the whole wide world or deploy like really really complex apps no no they have standards with which you can write and deploy code on ethereum right they control what type of code is allowed to be executed on the ethereum network because otherwise people could exploit vulnerabilities put security loopholes right they could deploy like bugs up there they really control what type of code can be executed on the ethereum network and there's contracts to which you know you must adhere to deploy your app to the ethereum network but in basic terms you can take code and you can put it on ethereum and that code will execute now everything on ethereum is an address is a wallet of sorts and you can interact with that wallet okay so ethereum is a coin ethereum needs to be burned in order to do transactions you're allowed to deploy code onto ethereum to do things okay understood so what does that mean for nfts mo we understand that you can take code you can deploy it on ethereum well for nfts this basically means that ethereum has a way for you to define encode the specifics of ownership right the things that we talked about and because of that we use ethereum to power nfts and nf and ethereum has built nft standards into the blockchain technology that they've built to ensure that there's one interface for defining what an nft looks like and for that we need smart contracts before we dive into smart contracts let's have a short recap in that short recap i just want to high level refresh you on everything we've discussed so far because it's all very high level right we've spoken about nfts and how nfts the non-funchable token aspect are the concept of ownership of this non-fungible asset right and ownership is defined by the ability to transact liquidity transferability in divisibility like it's unique that's powered by blockchain technology so we said okay we have this nft thing it's concept this concept can be powered by blockchain because blockchain is inherently immutable it's decentralized data storage sweet so now we're getting to the crux of the implementation detail right we're getting to ethereum ethereum powers nfts how does ethereum power nfds well ethereum is a blockchain technology ethereum enables you to deploy code onto the ethereum network ethereum is much more than just a simple coin that appreciates some value no it allows you to freely transact they've built all these standards on top of it it is a vast fast ecosystem and like i said before there's a lot you could learn just about ethereum you could have a whole course on it because it's so vast we're trying to single in on what aspect of ethereum helps us achieve nfts well there's this concept in ethereum called smart contracts smart contracts are no more than pieces of code that you deploy onto ethereum and then by deploying them onto ethereum they now become their own entity so to speak okay so let's dive a bit deeper into that what is a smart contract on the ethereum network and ethereum is powering the majority of this concept of a smart contract there are other networks trying to achieve similar things again a smart contract is a type of ethereum account okay okay so in the concept you know we know of block chain with bitcoin and ethereum everyone holds a wallet right everyone has this wallet and it can hold coins well a smart contract is no more than a wallet itself right it can hold things but users can interact with it okay users can interact with a smart contract so it's an account it can hold things users can interact with it think of it like a vending machine you give it money it gives you something back all right but smart contracts well they can define rules and enforce them via code so when you interact with it it can have a rule set you can only get something from me if you adhere to the rules that i have pre-programmed in my code it would be the same concept as a human telling you i'll give you this if you give me this much ethereum but it's automated now there's no more transactability a smart contract basically enforces the moment you give it something it's going to give you something back because it is the account itself it holds it holds the actual value itself so it is more than just a bit of code that runs on ethereum it can be its own entity and with that comes drawbacks right like what you program in the smart contract and what you put on the ethereum network well you don't want to put bugs in that now do you but in essence these smart contracts allow us to enforce and create these transactable events right and a smart contract being just the concept of the code that can be on the ethereum blockchain that can be transactable that is where the power lies and so understanding what a smart contract is makes us able to look a bit closer at well how would we program these smart contracts to hold digital art right and that's what we're getting at here is what do i need to do for an nft in the form of digital art on a smart contract to deploy to the ethereum network and we're starting to come full circle here and so let's look a bit closer at what type of smart contracts are necessary for nfds in this course we're not going to go deep into all of the defining qualities of the smart contracts that you could use on ethereum we're going to be using a marketplace to mint and sell our nfts to simplify the process but it would not be smart for us to not quickly look at hey what are the standards that are used for nft minting now that we know that smart contracts these pieces of code that run on ethereum are what power nfts and so i quickly wanted to touch on erc721 it is the first standard for nfts on ethereum so it's the first type of like smart contract or standard of smart contract rather that was used for nfds on ethereum think of it like a smart contract template it basically outlines all of the rules that need to be followed for nfts on ethereum as a smart contract now you can extend upon this you can even change it but it is viewed as a standard because when you follow the standard you know what you're getting right if people build upon the standard then there is trust and through trust you know that your ownership is secured so this type of smart contract well it creates and keeps track of ownership of the nfts that it has created so when you transact with the smart contract that was based on 721 you know that certain principles have been followed to ensure that your ownership of what you're purchasing against that smart contract because remember a smart contract is nothing more than a wallet so when you interact with it you are giving it money and it is giving you well money or rather ethereum and it is giving you something in return and that's something in return that it is giving you it is tracking your ownership on that smart contract of the non-fungible asset and this is where digital art kind of comes in now does it need to be digital art not necessarily it could track your ownership against something else as well but in the concept of digital art we're tracking the ownership of digital right so basically the smart contract when you interact with it you give it ethereum right to the wallet and it in the code will do things to either mint or generate an nft in this case the most valuable use case is digital art and that transaction is secure because we know that this contract builds certain standards into the smart contract there are certain pieces of code that are by default in the smart contract that give you trust now we'll be linking the resources to erc 721 so you can go read the specification if you want or some high level documentation around it but the reason that we wanted to touch on these smart contract standards is because at the end of the day anyone can build any smart contract right it's just code it's just code that goes on ethereum but through standardization like 721 we now ensure that we have trust because people are following a public standard that is open and that you can view otherwise there could be any type of code in that smart contract right so there's there's a certain validity that comes with implementing against that template the next standard you need to know about and maybe the final standard is erc-1155 it was coined the final standard for nfts on ethereum now it's a bold statement but basically there was this team the engine team and they built this new smart contract standard for nfts on ethereum and basically you can think of it as an enhancement of erc721 or a superset of the template that was erc721 now why is it a superset of erc721 well first of all it's cheaper because you can hold asset classes it no longer tracks singular ownership on erc721 you interact with the contract and it tracked ownership of each individual piece what this meant was that if you had nfts on an erc 721 contract let's say you owned five assets if you wanted to transfer those assets you would have to transfer those assets one by one right and so doing that one by one you're paying fees on each individual transaction in erc 1155 you can hold asset classes so if you if you buy 10 nfts of you know let's say you buy 10 digital art pieces from the same project now in erc-1155 you can hold all of those 10 together and you can sell them together you can transfer them together so there's it's cheaper you don't have to pay as many gas fees going back and forth because you can sell them in bulk there's a lot of enhancements but it's a super set because you can also create an erc721 asset inside of a smart contract that is erc-1155 now this is a complicated mechanism for saying that they're complementary basically they're complementary they're not competition erc721 can't support erc 1155 but erc 1155 the smart contract type can support assets of this type and so with that what you need to know here is that this is the current standard this is where it started this is where it's going and by knowing that you can deep dive a bit deeper into all of the aspects that go into it now we'll be linking the docs to the standard erc-1155 so you can read a bit deeper about it but at the end of the day this is what most marketplaces are running on right now and how asset classes are kind of divvied up right we we want things to be cheaper faster smarter because ethereum can cost a lot of money when you're paying these gas fees to transfer things and erc721 did a lot of good things but the enhancements that come from 1155 far outweigh the benefits of 721 and that's where the trickiness lies but basically this is the smart contract type that is now powering the majority of transactions around nfts on ethereum and that's what we need to know here that is the crux of it all you may have found yourself asking throughout this course what are the uses for nfds and what exactly is the long-term vision for nfts right this is this non-fungible asset business like where are we going right now we're in a renaissance period right we're very early on and digital art is king right we're doing all of this digital art business online which is great because it's giving all of these artists an outlet and a medium in order to make money but it's it's just the start right it's it's the first implementation of this nft business is digital artwork digital ownership right it's a stepping stone for more complicated technologies to eventually come in and utilize the similar technology for different use cases and we don't even know what use cases may arise this is one of the simplest use cases that has had a great benefit for individuals lives but if we look beyond the veil of today toward the future and think about hey this technology what can it be utilized for outside of this well you know we think about fashion wearables clothing maybe we link an nft to them to have ownership we all know that nike has a patent out for an nft to combat gray market selling by embedding nfts into the shoes and tracing the ownership right and therefore you kind of know that fashion is a potential avenue for this but other than fashion maybe collateral against the loan you know these non-fungible assets it's very similar to a concept of a pawn shop where you go in you trade in your non-fungible asset and you get money in return and you can pay back that money to get back your non-fungible asset but do this digitally right you have a loan somewhere you need quick liquidity use an nft as that quick liquidity against that loan that's that's a financial concept there's a lot of financial concepts out there that we could use nfts for like tons and tons and tons this is just one of them maybe in gaming right we've touched upon this many times throughout the course you buy a lot of digital assets and games but you need that liquidity transfer ability and all of those other hallmarks in order to be like well if i'm going to invest in these game skins why don't i get benefit out of it so that's just another avenue that may potentially spawn use cases for nfts and it's not to say that all of these nft use cases are going to be on ethereum right ethereum right now is where it's at but for true interoperability maybe we'll reach a point where we can go across blockchains and wrap these assets these non-fungible assets but the protocols and the communication mechanisms for that have yet to be defined and are very much in their infancy stage then we go look at something more business oriented like the supply chain right let's say you buy an item from a different country well you could theoretically track the entire process of that asset through nfts from having a token from where it was created when it was shipped where it arrived and you could follow the entire journey of the supply chain through the blockchain in this way now these are all concepts that nfts could be leveraged for in some way or another because the tokens grant uniqueness right and that uniqueness allows us to say hey the registration of this event so using it like an event driven system to be able to track a journey of something all of these use cases all to say that the space is extremely interesting and there's a lot a lot a lot of things you can do with technology and although digital art is where we're at right now and a lot of people are skeptical the long-term strategic vision for a technology like this is infinite and therefore we should look at it less with a skeptic eye and more with an open mind to be able to figure out hey maybe maybe i want to invest in some of these technologies potentially long term or maybe i just want to follow along and see right or maybe you work in a company where this may be interesting just keeping an open mind is very important when looking at these new technologies because even though you may be skeptical about the initial use cases the long-term use cases may be valid and valuable for you and that is important so now that we've gone through the entire journey of the what the how the why and everything in between now let's step into how do we actually mint so create an nft and sell it on a marketplace let's dive into that we've reached the final stretch how do we sell and distribute an nft here you see openc a website to discover collect and sell extraordinary nfts it's one of the largest nft marketplaces available and to simplify the processed entry without needing to build your own smart contract deploy your own code learn how to code and all of that in between we're going to use openc to create our own nft but you will need an ethereum wallet to use openc and so like we said ethereum is powering a lot of the nft market nfts are in huge demand and openc is a marketplace that builds on top of ethereum to make it easy for you to sell distribute and even buy your own nfts now we're going to go specifically through how to open your own wallet and sell on openc let's get started to open an openc account we need an ethereum wallet and an ethereum wallet is just a wallet that you can open on any of these providers metamask coinbase wallet connect 4matic now we're going to use metamask as the standard here but you can connect any wallet you already have now if we go to metamask we see that you can install it on chrome ios and android we're in chrome right now so we're gonna download and install it in chrome install metamask for chrome it takes us to the metamask chrome web store website and what we'll do here is we'll press add to chrome add the extension and by adding the extension we've now added metamask to chrome so that we can have our wallet inside of our chrome browser and as you can see they put this funny animation here now it says welcome to metamask connecting you to the ethereum and the centralized web we're happy to see you and now that we've installed metamask let's go through the setup so to set up metamask let's press this get started button and then it'll say are you new to metamask if you're not you can put in your secret recovery phrase or if you are new well let's get set up let's create a wallet it's going to ask you if you want to help improve metamask gather usage data for now i'm going to press no thanks and we're going to have to fill in a password so choose any password that's a minimum of 8 characters and has at least a number and a special character and by doing that what we'll do is we'll be able to create a metamask account we'll select i have read and i agree to the terms and we'll press create by creating the password now it's going to show us a short informational video about the secret recovery phrase i recommend that each and every one of you watch this video into its completion but let's go over it what is the secret recovery phrase your secret recovery phrase is a 12 word phrase that is your master key to your wallet in your funds it's extremely important that you keep this it's not the password we just filled in this is a separate thing it's the master key always keep it always store it and i'm changing my tone because it's extremely extremely important how do i save my recovery phrase well you can save it in a password manager in a bank fault in a safe deposit box write it down store it in multiple places should i share it never ever share it now the reason that this is so important to store and don't take it lightly because often we just whatever if you lose this and you lose access to your account you can never ever ever recover any part of your account that's a scary thought but it is the truth people have lost millions and millions and millions in bitcoin that are lost in the ether forever because they have forgotten their secret recovery phrase take it seriously watch the video and then we'll come back to this hopefully you've all watched the video and you now understand the importance of the secret phrase and what it entails now keep in mind the account that i'm creating here is not the account that i will be using for any of my information right so this wallet it's going to be empty don't even try to access it because it's not going to have anything in it but if we go to next it's going to show you your secret recovery phrase ensure that you click the link here to download your secret recovery phrase into a file then what you'll do is you'll click here in order to reveal your secret words so when we click reveal here it'll reveal the words and then we can go to the next step and in the next step now we have to select the words in the right order and once we select the words in the right order we can confirm and then we've created our account so to do this you just select the words and once you've reached 12th word you can confirm and then if you've selected them in the right order right then it should work out in your favor right you should be able to confirm right now you can see i can't confirm because it's not in the correct order therefore i need to ensure that i select them in the correct order and that's what i'm going to do now i recommend that you all do the same and then once you've selected them in the right order you can click the confirm button once you have selected them in the right order and press the confirm button you will be greeted with the congratulation page you've passed the test and your security phrase is safe and it's your responsibility so keep that file safe and it gives you more tips for storing it safely please make sure to read through all of this and keep it safe we are not responsible for anything you do wrong in this case you are responsible for your secret recovery phrase and that is that so then you press all done and now you have a fully viable meta mask account with ethereum in it and now we can connect that to openc so let's look at what that looks like now after you're done setting up your wallet and you've installed metamask what i have found is that you often need to restart chrome in order for it to be fully compatible with everything so restart chrome and then keep the password that you filled in when you created your account not the secret phrase but the password you filled in because you'll need to fill it in again to log in now once you restart chrome and you go back to openc we can now press the connect your wallet button and then we can press meta mask and then by pressing meta mask it will open up this popup where we need to fill in our password to unlock metamask and then i can say hey connect openc to metamask select the account you want to connect so we'll select the account we just created you can create multiple wallets in metamask but it creates one by default and we'll connect that one and then it'll ask you connect account with this address allow to view addresses permitted accounts we press connect and now our wallet is connected to openc our complete usd wallet and so now that we have our wallet connected we can actually go to our account our profile and we can see that our metamask account is here awesome so now we can start playing around with what we can do on openc so let's dive into that now that our account is set up maybe we'll tinker around with the settings a bit so let's go over here let's click this little settings icon and oop another pop-up came up and it's saying signature request welcome to openc click sign to sign in no password needed this does not trigger a blockchain transaction or cost any gas fees your authentication will be reset after 24 hours so let's sign that and now we can actually go into our profile settings and set up a complete account for our wallet that's amazing so here you can fill out your username your bio so you know as a username we can fill in ztm bio we'll fill in the bio a bit later and then for your email address you should fill in the email that you want to use i'll be using crypto at zero2mastery.io and so you can fill in other parts of your wallet you can even put up a profile image a profile banner and then you can save your account as is and now it'll tell you verify your email address to link it to your openc account and so that's what you should do go to your email go look for the openc email and verify the account after taking some time to make my profile and verify it by email i took some time to set up the profile page and this is the official zero to mastery openc page where we will be distributing ztm specific nfts if you were interested and here is also where we will be distributing the very first nft that ctm will ever launch as part of this course the very very first one the very first nft ever that ztm will make will be made in this course isn't that exciting so and we'll be showing you how we go through that process awesome so let's get started over here in the settings panel right we're going to open that up seems like there's a small bug here so let's go back to openc and then let's click it and then let's say account my collections right and then let's say create create and manage collections of unique nfts to share and sell and then we'll create the collection and as part of the collection we need to have a logo image so that logo image is going to be this image we'll open that up and then featured image this image will be used for featuring your collection on the home page category collections promotions etc and so for that you know you select a different image and we're going to go with the basic ctm branding if anything which will be our branding image for both the site wide and the regular image like the banner and the featured image and then we'll say what's the name of our collection well we'll call it origin and that will be the origin of ztm's openc collection oh that name is already taken so we'll call it zero to mastery and you have to find a collection name that's actually available for you right you can also customize the url if you wanted to so we'll do zero to mastery as a url and we'll do our standard learn to code get hired as a description right what category are we art trading cards collectibles sports utility well i'll put us an art you can select a maximum of one category that's very important to note here and then there are certain links that you could fill out here for your collection royalties that can be paid out collect the fee when a user resells your item this is deducted from the final sales price and paid out on a monthly basis and we can fill out percentage and then we can say what are the payment tokens that we accept right do we accept ethereum or polygon we're going to stick to ethereum and you can fill out the percentage of royalties you want to get for your collection based on what you think is fair then display a theme we'll do contained covered padded these are how your nfts will be displayed in your collection explicit or sensitive content right and so some of this is very important uh if you need to set your collection as explicit content you toggle this toggle over here so we're gonna go with covered uh we do not have explicit content and then you can go and create a collection and that's how it goes oh also don't forget if you fill in a royalty you have to fill in the address that it needs to go to and so once we hit create over here you can see the zero to mastery collection currently there are no items in the collection and we'll be minting the very first item right here right now now that we have a collection and we have it all set up with everything that we need right we have our own personal profile the ztm profile we now have a collection on the marketplace the collection on the marketplace isn't the nfts yet it's just openc's way of pooling together all of the items that you want under what you would call a project so your art pieces you can put in different collections if you wanted to make specific collections for specific things so now let's go ahead and add an item over here you can see the create a new item form this is where openc allows us to actually upload our image or video or mp3 whatever the case may be and so what we're going to upload is our very first nft the ztm biker and we're going to call him the ztm biker so here you can see the uploaded you can do jpeg png gif svg mp3 all of the above and if you have a project externally right if you have a bigger project where you have a website with all the information around the art you're trying to make you can link the specific item with extra information so that they can go view your project now over here you can fill in the description here we'll fill in the very first ztm nft the ztm biker and then we'll add it to the collection zero to mastery because that's the only collection we have and here you can see that you can add properties to it right you could have properties like character age all that stuff so what we're gonna do is we'll give it a character but we're gonna call the character number one because it's the very first nft you can give it levels you can give it stats you could even give it unlockable content unlockable content being a specific access key and email something to contact someone or a specific item code that you could redeem for something and who knows maybe we'll put something in here so that's where you can put unlockable content next to that you can mark it as explicit content just in case it's not for young people and you can determine on what blockchain so openc supports ethereum and polygon polygon is a gas free blockchain experience that works with ethereum so you can determine on which chain you basically want to sell it and then once you hit create you create it but once you hit create it actually goes through the process of creating your nft on the openc platform now at that point it hasn't been distributed to the marketplace just yet it just says you created the ztm biker now that we've completed the creation of our nft it is time for us to get ready to sell it and over here on the overview page of our asset we can see that we have an edit and a cell button where we can edit the nft and we can list it to sell and so when we go to the sale page right where we're going to put it up for sale we have the option between putting it up for a fixed price or putting it up for an auction and putting it up for an auction just says that you put in a starting price and then over seven days you can bid and so we're gonna do it for a fixed price and we're gonna select 0.19 ethereum which is 800 once we hit complete listing we are going to get prompted to initialize our wallet and over here you can see that the gas fees are estimated to be 0.05 eth right and so with that we're spending 259 dollars to initialize our wallet so this is the very very first time we're selling on openc and because it's the very first time that we are selling on openc we need to initialize our wallet we need to get set up for the first time in order to be able to sell on openc as an account you only do this once the very first time that you list something and then it's good to go so we'll hit confirm here and then once we confirm it should be able to go through so make sure that you have ethereum in your wallet and then we'll go to ether scan and over here you can see that the transaction has not yet been processed so once the transaction has been processed that's when it will go through so there's one transaction i
2022-01-15