php editor Xinyi will introduce to you the buying and selling process of NFT digital collections. With the development of blockchain technology, NFT digital collections have gradually become the new favorite of the art market. Want to learn how to buy and sell NFT digital collectibles? This article will give you detailed answers. From creating a digital wallet to choosing a trading platform to making buy and sell transactions, do it all. Whether you are an art lover or an investor, I believe this article can help you better understand and participate in the purchase and sale of NFT digital collections.
NFT digital collection transactions are usually conducted on online platforms. According to different trading platforms, they can be divided into two categories. One type is the official website operated by the copyright holder himself, which is similar to the "self-operated area" within the platform. The other type is a third-party trading platform, where the copyright owner or its authorized entities publish NFT digital collections. The platform makes money by charging site fees and drawing a certain percentage of service fees from each transaction.
At the same time, the NFT trading market can be divided into primary market and secondary market. The primary market refers to the market where NFT digital works are first issued and sold to the public. The secondary market refers to the subsequent circulation market. It should be noted that in order to prevent NFT digital collections from being given financial attributes, most of China's NFT trading platforms currently do not open the secondary market. For example, the user agreement of the "Whale Detective" mini program launched by Alipay clearly stipulates that only buyers are allowed to transfer the product free of charge. Such restrictions are intended to prevent speculation about digital collections. However, some platforms that open for secondary trading have experienced speculation in digital collections. For example, the transaction prices of the "Su Xiaomei" and "CBA" series of digital collections launched by the "Unique Art" platform have soared from tens of yuan to tens of thousands of yuan.
At present, it is mainstream to buy and sell NFT digital collections on third-party trading service platforms.
For issuers, the first step in the operation process is to create an account. Taking KnownOrigin as an example, publishers need to apply to become artists. In this step, they must create a profile page and fill in their profile picture, resume, and social accounts such as Instagram. After creating a profile, publishers need to apply via the artist application form. The platform takes the time to review and verify artists through direct communication on social media and email, performing a high level of due diligence. In addition, users usually need to connect their wallet to the trading platform.
In the second step, the publisher uploads the digital artwork stored on the computer to the platform, and then fills in basic information such as the name of the work, description information, classification attributes, etc. Some other platforms have additional functions, such as settings File password, redemption code, and information can be set to be displayed to the buyer only after the transaction is successful. The platform will store digital artwork files in a centralized cloud storage service or IPES (a distributed storage solution). These files are given unique identifiers and can track the chain of custody and provenance.
The third step is to set the trading conditions. The issuer can choose the number of copies to exist, which results in scarcity. At the same time, you can set the transaction price and sales method. You can choose bidding auction or fixed price, or you can set the sales time and floating price. Some platforms, such as KnownOrigin, also allow you to set the sales royalty rate, allowing the initial buyer to Get a certain percentage of the price.
Finally, select the underlying smart contract for this transaction. Generally speaking, most trading platforms use the Ethernet ERC-721 standard Smart contracts, which are discrete computer program components deployed in blockchain nodes, can be automatically executed, and then the NFT "minting" service fee is paid through a digital wallet or other payment methods. At this time, an NFT is "minted". .
For buyers on the trading platform, after discovering the NFT digital collection they are interested in on the trading platform, they pay the price through the payment method given by the trading platform, and the buyer immediately becomes the NFT digital on the trading platform. For the owner of the collection (as shown below, you can find the NFT digital collection you purchased on the app), the "if-then" statement embedded in the smart contract is triggered, and new owner information is generated on the blockchain. The buyer forms a quasi-possession state of the NFT digital collection.
The core value of digital collections (NFT) lies in the following three aspects:
1. Make digital content assets change. Under the current Internet, we only have the right to use digital content and cannot truly make digital content our assets. The emergence of digital collections (NFT) has broadened the boundaries of digital assets. Digital assets no longer just refer to digital currencies. Any unique asset can be cast into a digital collection (NFT), whether it is a physical asset or a variety of Digital content, such as pictures, audio and video, game props, etc., which improves the tradability of digital content.
2. Rely on blockchain technology to ensure the uniqueness, authenticity and permanence of assets, and effectively solve the problem of ownership confirmation. This has three benefits. First, decentralized storage ensures the permanent existence of assets and will not disappear when the centralized platform stops operating. Second, it provides new ideas for intellectual property protection. Third, it improves the efficiency of asset transactions. And reduce transaction costs (such as the cost of identifying the authenticity of collectibles), enhance the liquidity of assets, and attract more buyers of digital assets to conduct trading activities.
3. The decentralized transaction model improves the commercial status of content creators to a certain extent and reduces the commission share of centralized platforms. Through the smart contracts embedded in digital collections (NFT), creators can obtain continuous royalties from subsequent circulation.
In fact, there are still many problems in the entire digital collection market. After all, the development of NFT in our country is still in an early stage, and digital collections are originally a Chinese localization concept created to weaken the financial attributes of NFT. . Digital collections now have a series of issues such as compliance issues on the sales platform, lack of market supervision, consumer awareness issues, digital collection (NFT) quality issues, market risk prevention and control issues, platform technology storage risks, and the impact of quantum computer technology. .
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