How much does it cost to create NFTs?

Non-fungible tokens (NFT) have been around for a while. However, their explosion in popularity was seen later in 2021. The NFTs came into the limelight after the sale of one of the most expensive NFTs ever sold. Minting NFTs also contributed to their rise in popularity as they cost much more than normal blockchain transactions such as DeFi, authentication and token exchange. NFTs in most cases end up making headlines when celebrities get involved. So if you decide to venture into NFTs, we make you understand the cost of minting NFTs.

What exactly is NFT?

The NFT phenomenon has been in play since 2014. However, after Pak’s sale, they have grown incredibly popular. Before the introduction of social tokens and NFTs, commerce was a big part of the digital world. People have been buying/selling or holding digital assets for a long time, but the security and ownership of digital assets was difficult to define.

When social tokens and NFTs were invented, it became easy to demonstrate ownership of digital assets and the encryptions made it much safer. So, in short, an NFT acts as a digital certificate of ownership for digital assets, which can be anything similar to real-world objects and art, such as paintings, music, photography and videography, games, virtual real estate, etc.

NFTs have their own metadata codes stored on the digital ledgers using blockchain technology to establish uniqueness and ownership. Non-fungible tokens are one-of-a-kind, meaning that one token cannot be exchanged for another. Each NFT’s value is different.

How are NFTs made?

In blockchain terminology, creating an NFT is known as NFT minting. NFT minting includes deciding where, when and how to build NFTs and what tools and technologies must be used.

The first step in making a mark on NFT is to create a unique digital resource. It can be anything from digital art to in-game weapons. It should be followed by selecting and setting up the crypto wallet and NFT Marketplace.

The next step is to create and list the NFTs on NFT marketplaces. You need to upload your digital asset file to the marketplace and create the metadata. Once the digital resource has been uploaded, you have finished creating the NFT. Finally, you can list or display the NFTs in a marketplace where people can buy them, commonly known as a listing.

The Costs of minting NFTpp

Anyone can create an NFT and it is also easy to set up accounts on all major platforms, such as Opensea, Rarible or Mintable. The most exciting thing about such platforms is that they offer at least two, if not more, blockchains to choose from when minting an NFT.

It is important to note that NFT creation depends on the chosen blockchain. Create an NFT range from $0.05 to over $60. The most expensive blockchain to create an NFT is Ethereum. On the other hand, Solana is the cheapest. However, this does not include marketplace fees, which range from 2.5% to 5%.

Therefore, some blockchains appear to be preferable to others. It’s crazy to know that the Ethereum blockchain has had fees of over $500 to Mint NFTs at its busiest.

Thus, one can choose between blockchains, choose the cheapest one between them.

We break down the costs of creating an NFT between blockchains in the table below.

The reason for the indifference between Ethereum and other blockchains is the Ethereum network’s consensus mechanism. However, Ethereum has undergone massive updates, changing it from a Proof-of-Work (PoW) to a Proof-of-Stake model. After this update, transactions will likely slow down and speed up.

We see this in a blockchain like Solana, using PoS and the proof-of-history (PoH) protocol. The dual protocols enable Solana to provide a more efficient experience. As a result, it is possible to carry out 65,000 TPS.

Regardless of which blockchain you choose to create your NFT, however, there are other transaction costs you are likely to face. Such are:

Minting

Minting involves publishing your token on the blockchain. As such, it is necessary to pay a fee to the miners who are actively working to publish your NFT. Minting comes as the most expensive process of creating an NFT.

Marketplace fee

Marketplace fees vary depending on the marketplace you use to create your NFT. It is through such fees that the compensation of the marketplace services takes place. Creating an NFT on any marketplace, regardless of the blockchain, means you are subject to the transaction fees. Each marketplace will have fees ranging from 2.5% to 5%.

Is it possible to create NFTs for free?

You can create an NFT for free using the Polygon blockchain. Using the lazy minting feature, you can create an NFT for free for your NFT seller. Otherwise, it is best to use cheap blockchains like Solana, Tezos, Avalanche or WAX to create an NFT for cheap.

Very few NFT marketplaces and even fewer blockchains allow you to create an NFT for free, understandably. Since one person does not run blockchains, a number of people around the world spend time and resources maintaining each blockchain, so users must pay a fee.

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This analysis concludes that it does not cost much to create an NFT. It can be completely free if you choose a popular platform like OpenSea, Rarible or Mintable and check the lazy minting option.

The cost of creating NFTs mainly depends on the blockchain you choose. Understand the different blockchains and choose the best one for your art, collectibles or digital assets.

Vincent Munene is a freelance writer and a big blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return he enjoys educating people and keeping them updated on all things blockchain. He is a biochemist by profession and also loves to play the piano.