NFT LIFE CYCLE

How does the process work for creating and buying an NFT?

1 CONTENT CREATION

The creator produces the original content but they retain the original copyright.

2 STARTING THE PROCESS

NFTS are typically traded with cryptocurrency, so the first stage is for the creator to pay to list their NFT.

3 MINTING

The term for creating an NFT is known as ‘minting’ the digital asset.

4 UNIQUE TOKEN

On the Ethereum blockchain the NFT is given a corresponding unique token.

5 OWNERSHIP DATA

The blockchain records history of transactions, while metadata includes background information on the asset.

6 GOING TO MARKET

The NFT can be listed on specialist sites, but they have also been sold at famous ‘realworld’ auction houses.

7 MAKING THE SALE

A buyer spots the NFT they want and pays for it, usually with cryptocurrency. The transaction is recorded on a blockchain.

8 TAKING OWNERSHIP

The buyer gets the digital token, which ratifies their ownership of the NFT digital asset. This is their ‘proof’.