NFTs, or non-fungible tokens, are a type of token native to the Ethereum ecosystem. Defined in ERC-721, NFTs are a provably unique digital asset where end users can easily distinguish each NFT from another. Whenever a NFT transaction occurs, it is recorded by the block chain.
NFTs can represent anything from digital art to actual physical assets.
Understanding NFTs: The Basics
Before delving into the creation process of an NFT, it's crucial to grasp what an NFT fundamentally represents. Standing for Non-Fungible Tokens, NFTs are distinct digital assets, ensuring that each token is inherently unique. Imagine each NFT as having a digital fingerprint; even if two NFTs might visually appear identical, their unique digital codes differentiate them.
This uniqueness is what significantly empowers digital creators. Previously, digital artworks could be replicated indefinitely without a method to distinguish the original from its copies. NFTs change that dynamic, introducing a way to verify authenticity and ownership of digital files, marking a revolutionary shift in how we perceive and value digital creations.
For a more detailed exploration of NFTs and their capabilities, consider reading our intro to NFTs.
For a primer into NFT use cases, refer to our article 10 Ways Enterprise NFTs Will Change How We Do Business.
Understanding NFT Minting
To "mint" an NFT is to generate a unique digital token on a blockchain platform. This action embeds the digital item within the blockchain, making it an official part of the ledger.
The minting phase is critical for defining what exactly is encapsulated within the NFT. Sometimes, this includes the full digital artwork, resulting in all aspects of the NFT and its associated data being recorded directly on the blockchain ("on-chain").
Alternatively, the NFT might simply act as a pointer to data stored elsewhere ("off-chain"), such as on the InterPlanetary File System (IPFS). Essentially, minting can be viewed as the foundational step in bringing an NFT into existence.
Why Mint NFTs on Kaleido?
Kaleido makes it very simple to deploy your own NFT smart contract and start minting NFTs. There are many reasons to mint a NFT on Kaleido. For one, minting and transferring NFTs on our NFTPlatform requires nogas, meaning there is 0 transaction cost to you! On platforms such as Opensea, Rarible, or others, NFTs are hosted on public chains. You will need to connect and fund a wallet with an appropriate cryptocurrency in order to do any sort of transaction because those chains require gas to pay for the transaction..
A second reason is platforms such as Opensea, Rarible, and others are inherently centralized. For example, Opensea takes a service fee of 2.5% in addition to gas fees for any sales of NFTs. On Kaleido you are able to mint NFTs on your own chain and dictate custom properties.
For the purposes of transparency, Kaleido also offers tethering services to public Ethereum which allows you to share the state of your private ledger which gives you history re-write protection from thousands of public Ethereum nodes, while retaining the privacy of a private chain. For more information on tethering, refer to our article, Pin State Proofs From Your Private Chain to Public Ethereum Networks.
In this article we'll go through the four simple steps needed to mint a NFT on Kaleido—all of which can be done in 5 minutes or less.
4 Steps to Create an ERC721 Token on Kaleido
Step 1: Create a Kaleido Account
If you haven’t already, sign up for a Kaleido account here. Create an account and password and you will be all set. NFTs can be created with any plan on Kaleido, starter tier (free) included!
Step 2: Create a Blockchain Network
To get started, create a blockchain network. You will need to name your network and select deployment region(s). This is where your resources will be hosted and there are various options for AWS and Microsoft Azure.
After your network is created you will need to create an environment. There are options for different protocols, however, to mint a NFT make sure you create an “Ethereum” one. You will also need to select a provider.
For our purposes any will do but if you are curious about the differences here is a technical overview.
You’re almost there. Once your environment is created, set up a node and leave the default configurations of “small” and “signer” on the final panel.
Step 3: Create a Token Pool
Now that your blockchain network is created, navigate to the “digital assets” selection in the left panel and click “tokens”. Select the Signing Account as the node you created in the previous step which will be used to deploy the token contract to the blockchain and create using our Token Factory. To mint a NFT, make sure to select either KaleidoERC721Mintable or KaleidoERC721MintableBurnable.
Next, give your token a name and symbol and click “deploy token instance”.
Step 4: Mint Your NFT
Now that you have deployed a ERC721 contract, the next step is to mint your NFT. Go back to the left navigation and click on “tokens”. You should now see your created NFT. In the top right, click “select signing account” and pick the same account you used to create your NFT.
Next click mint, give your token an unique numerical ID, and token URI if applicable.
The token URI is used to point to a unique image for the NFT which contains metadata (example below).
{
"name": "NFTexample",
"description": "Example of a NFT",
"image": "https://example.com/NFTexample.png",
"attributes": [
{
"trait_type": "ease_of_use",
"value": 100
}
]
}
The URI is optional but recommended and more information can be found here.
After creating your ERC721 token, click on the Digital Assets tab on the left nav and select Token. From there deploy the contract if you haven’t already. Once the contract is deployed, click into the details to see a screen like below:
Select your signing account and the MINT button should become clickable. Click “Mint” and you will be given prompts to enter the Token ID, URI, and optional target address. For token ID you may assign any numerical digit but keep in mind that each NFT that is minted needs to have a unique Token ID. This means the same NFT contract cannot have two NFTs with Token IDs of 1. For this example, we will give the Token ID a value of 1. Click the Mint button and you should see a successful mint pop up.
Click the x in the top left and you should see that the Address Button has now updated to 1 with the account address. Congratulations you have now minted your first NFT!
Step 5: Transfer Your NFT to Metamask
In the same screen click the Transfer button.
You may either provide an address from your blockchain environment or a custom address. To get another address in your blockchain environment simply create a second node. In this tutorial we will show how to get your token into Metamask.
If you haven’t setup a Metamask wallet before, this guide will help you make one.
In your Metamask account, click the networks dropdown and click “Add Network.”
This will bring you to your Metamask settings screen where you will need to “Add a network manually”.
For Network name, you may name this anything. To get the RPC URL and Chain ID, navigate back to your Kaleido console and go to the Blockchain section. On the Blockchain dashboard select “View Node” for your node.
Then click Connect App and create a new app cred called “metamask”. The RPC URL will be listed under JSON/RPC HTTP endpoint. Copy this value into Metamask.
To get your Chain ID, click on the Settings section. Your Chain ID will be under Environment Info.
Once you have all the information click save in the Metamask settings.
Next, click “Import tokens” which should prompt you for the token address. The token address may be found in the Tokens section under Token Info.
Copy this value and your token symbol and decimals should auto-populate. Finally, transfer tokens to your Metamask account by copying your Metamask wallet address.
Select an amount to transfer which will be 1 and the Token ID will be the value you had entered in the previous step. Then click Transfer. Once you get a “Successful Transaction” message go back to your Metamask wallet.
Refresh and your balance should now appear.
Practical Applications for NFTs
NFTs have a wide array of applications across industries, largely driven by their ability to ensure the uniqueness, ownership, and provenance of both digital and physical assets. Digital asset tokenization is also a popular trend in the enterprise space. Where once tokens were synonymous with a public chain-based cryptocurrency, today businesses are tokenizing many real world assets to digitize legacy systems.
Tokens are especially helpful when transferring assets on a shared business network because they are well-defined, traceable, and secure. You can essentially create a token, or digital twin, out of any real-world item. This includes holdings, contracts, even property.
Understanding these applications and making them function in a business setting may require knowledge of technology, law, art, finance, and more. But getting started with NFTs has never been easier. Tools like our NFT Platform let you create dedicated experiences that customers will enjoy.
Benefits of NFTs
NFTs present an excellent opportunity to build, reward, and monetize an audience. The digital nature eliminates concerns related to physical transportation or storage. Another advantage of NFTs is how simple they are to create, especially when you use a platform like Kaleido’s.
Once your NFT is created, it gains the characteristics of a traditional asset, enabling trade or sale. This enhanced fluidity simplifies the process of turning digital arts and assets into a financial gain.
Safeguarding of Your NFTs
When it comes to custody solutions for blockchain assets, there's no one-size-fits-all approach. Depending on the type of asset and the level of security required, different custody solutions may be necessary.
By considering the unique features of tokenized assets, such as their underlying physical assets and regulatory requirements, we can develop custody solutions that provide the necessary level of security and compliance.
Kaleido makes all this much, much simpler. With native wallet integrations, click-button connections to third-party custody providers, and the ability to map wallets to users at scale, we’re the partner to help you solve your digital asset custody challenges.
Storing NFTs on IPFS
Kaleido simplifies the process of storing Non-Fungible Tokens (NFTs) on the InterPlanetary File System (IPFS) through our platform, offering a streamlined approach to integrating blockchain technology with IPFS for NFT storage.
Here’s how Kaleido facilitates this process:
- Integrated IPFS Storage Solutions: We provide integrated solutions that allow users to seamlessly store NFT metadata and assets on IPFS directly through the platform. This integration removes the complexity of managing separate IPFS nodes or handling the storage infrastructure yourself.
- Easy-to-Use Interface: With a user-friendly interface, we help users, even those with limited blockchain experience, to mint NFTs and store associated data on IPFS without delving into the technical details. This makes it accessible for creators and businesses to launch their NFT projects quickly.
- Automated Metadata Handling: When creating NFTs on Kaleido, the platform can automatically handle the metadata and asset linking to IPFS. Users simply upload their digital assets, and we take care of generating the IPFS hash and linking it to the NFT, ensuring the data is securely and permanently stored.
- Scalability and Performance: Our infrastructure is designed for scalability and high performance, ensuring that NFTs and their associated data are easily accessible and reliably stored on IPFS. This is crucial for projects that require the efficient handling of a large volume of NFTs.
- Security and Reliability: By leveraging IPFS through Kaleido, users benefit from the decentralized and resilient nature of IPFS storage, enhancing the security and longevity of their NFTs. Our platform further adds layers of security and compliance features, making it suitable for enterprise-grade applications.
- Comprehensive Blockchain Solutions: Beyond IPFS storage, we offer a suite of tools and services for the complete lifecycle of NFT creation, management, and sale. This includes smart contract deployment, marketplace creation, and transaction monitoring, providing a holistic ecosystem for NFT projects.
Kaleido's approach to integrating IPFS for NFT storage significantly lowers the barrier to entry for creators and businesses looking to engage with blockchain technology and NFTs, offering a robust, secure, and user-friendly platform for the digital asset economy.
Additional Support Resources
Minting a NFT is just one of many things you can do using Kaleido. Be sure to check out Kaleido’s YouTube channel, blogposts, and docs for more information and other tutorials about how to use the platform.
