What is Cardano Blockchain?
Cardano is a blockchain network that supports smart contracts. This blockchain network also hosts NFTs. Cardano network uses the proof-of-stake consensus mechanism that makes it more energy conservative.
At the same time, Cardano blockchain is also an ecosystem for hosting decentralized applications. The native currency of this network is ADA coin. However, NFTs hosted on the Cardano network are gaining more traction in recent times.
Working Mechanism of Cardano NFTs
There are three main components of NFTs that are hosted on Cardano’s blockchain given as under:
Cardano users can access Cardano wallets or custodial services for storing, managing, and trading their NFTs. Wallet services providers such as Yoroi, Gero, and Deadalus support trading activities on Cardano’s blockchain.
There are many NFT platforms that are based on the Cardano’s blockchain. Popular forums include jpg.store and CNFT.io. Cryptocurrency investors can purchase, sell, and mint NFTs on these platform using the native currency of the Cardano blockchain namely ADA.
Cardano is a smart contract blockchain meaning that it is also a host for decentralized applications or dApps. Developers use Cardano blockchain tools to create different types of NFT protocols offering various functions for the investors.
On account of massive development activity on the blockchain there are various NFT products on the platform that offer services such as lending, fractional purchases, and royalties system etc.
How to Create NFTs on Cardano Blockchain?
There are a few simple and easy steps to use the Cardano blockchain for minting new NFTs:
Creating Digital Artwork
The first step in creating an NFT on Cardano’s blockchain is coming up with original artwork or digital representation. The more value the artwork carries, the better the chances of its promotion and sales.
NFTs are essentially digitized visual files versions such as Jpg, pdf, or png etc. Some NFTs are also video or audio files depending on the medium that the artist wants to utilize.
Choosing the Developer Tools
The next step is to convert the digitized version of the artwork into an NFT. It is important for the artists to ensure that their work is unique and does not violate the intellectual property rights.
The artists can access the suitable tools on a given NFT dApps or others such as NFT-Maker.io and CNFT.io to convert their artwork into an NFT.
Metadata and Token Policy
For best results, the artists should add Metadata to their artwork such as the name of their collection, description, and credentials. Another good practice is to add NFT policies and uniqueness to the NFTs as a way to ensure their scarcity.
Minting and Distribution
The final step is to upload the artwork in digitized form with the added metadata and token policy to the selected NFT minting platform. Once the NFT is minted, the protocol will transfer it automatically to the wallet address.
From here, the artists can list on an NFT market place to start bidding and selling.
How to Trade NFTs on Cardano Blockchain
Here are some user-friendly steps to purchase or sell NFTs on Cardano’s blockchain:
Add Cardano Wallet
It is important to add a wallet address on the NFT marketplace to store the product. At the same time, wallet account allows the investors to pay for their purchases using the relevant cryptocurrency.
Users have the option to look up NFTs that are relevant to their requirements. There are filters to sieve though listed options based on rarity, metadata, and prices.
Bid and Sales Offer
Once the NFT is finalized, the investors can make a sales offer to the artist.
If the artist accepts the bid or sales offers, the buyer can pay them in the form of ADA tokens. From there the ownership of the NFT will be transferred to buyer and it will be sent to their Cardano wallet.
The NFT marketplace is evolving at a rapid pace. There are new projects, features, and options added to the mix on regular basis. The developers on Cardano’s blockchain are working on bringing better services and infrastructure to facilitate the NFT collectors and investors.