Category: NFT Tech

Blur’s NFT Market Domination

Posted on by Tiffany Behnam

Blur.io has taken the NFT marketplace by storm since its launch in October 2022. The platform has quickly become the largest trading platform for NFTs by volume, with a user-friendly interface that caters more to professional NFT traders than retail users.

Unlike other marketplaces, Blur offers batch shelf and floor-sweeping transactions in addition to order book NFT transactions, allowing traders to make batch operations more conveniently (buying NFTs with the lowest price at once). Buyers can not only browse NFTs on Blur but also on other NFT marketplaces and place orders directly through Blur with instant liquidity.

In terms of fees, Blur has a very trader-friendly fee structure and does not charge any transaction fees for users on the platform. In terms of royalties, which are mandatory for a certain percentage of secondary transactions on other marketplaces, Blur recommends a default royalty rate of 0.5% for buyers. However, this can be customized and even set to 0 if the user wishes. Overall, Blur.io offers a more convenient and cost-effective platform for professional NFT traders.

Blur was founded by PacmanBlur, an MIT-graduate and member of the Peter Thiel Fellowship. The product was built in conjunction with support from leading venture capitalists, such as Paradigm. The platform recently completed its $BLUR token airdrop after Season 1 of the incentivization program finished. Users were rewarded ‘Care Packages’ for providing liquidity and trading on the platform, which were available to be opened on the 14th of February. Some traders earned up to $3 million in $BLUR tokens and the project launched at an eye-watering $400 million valuation.

Blur has minted 3 billion BLUR tokens, which will be made accessible over 4 to 5 years. The token allocation is divided into 51% for the community, 29% for past and future core contributors, 19% for investors, and 1% for advisors. A community treasury of 360m BLUR tokens, equivalent to 12% of the total token supply, can be claimed by NFT traders, historical users of Blur, and creators.

The community treasury will distribute 39% of the BLUR supply through contributor grants, community initiatives, and incentive programs, with 10% allocated to the next incentive release. The vesting of BLUR tokens will occur continuously according to a set schedule for each group of token recipients.

Blur has grown to become the largest NFT Marketplace in the world with the help of their incentives program. It has successfully flipped OpenSea within 6 months of release due to its user-friendly UI, low fees, and deeper liquidity for NFTs. The platform boasts impressive stats with over 400,000 active users and $1.4 billion in traded volume according to Dune Analytics.

The Blur platform runs ten times faster than other NFT aggregators, displays the pending transactions on the NFT in less than one second, and updates the list every four seconds. The fast display of pending transactions, together with the nearly real-time metadata update on the collection art display, constitutes a huge advantage for users who want to quickly come in and out. In addition, Blur’s gas priority preset can help traders to outperform the competitors who purchase NFT through other exchanges or aggregators. Most importantly, the contract in Blur is more optimized than that in other markets, saving up to 17% on gas fees.

Another popular feature of Blur is that it can clearly show the rarity of different NFTs and the floor price under specific attributes. Rather than using sales history or a series list to evaluate NFTs that are priced higher than the floor price, Blur’s platform instead searches for the lowest priced NFTs based on their individual characteristics. This function can greatly simplify the process of finding undervalued NFTs, and thus it has become one of the main reasons why collectors and investors are drawn to Blur.

Additionally, the Blur team has also put a lot of effort into improving the user experience of their platform. The website is user-friendly, visually appealing, and easy to navigate, which makes it accessible to even those who are new to the world of NFTs. The team has also made sure that the platform is secure, reliable, and can handle a high volume of transactions without any technical glitches or issues. This has resulted in a seamless experience for users, which has contributed to the platform’s success.

Comparison to other platforms

Blur has emerged as a dominant player in the NFT marketplace due to its unique features, user-friendly interface, and emphasis on security and reliability. With the growing popularity of NFTs, it will be interesting to see how Blur continues to innovate and stay ahead of the competition in the coming years.

The launch of Blur has immediately pushed OpenSea to launch OpenSea Pro, their version of an aggregator. OpenSea Pro aims to compete with this by offering a similar experience, but with added benefits.

One of the key features of OpenSea Pro is its advanced search capabilities. Users can filter and sort through millions of NFTs with ease, making it easier to find exactly what they’re looking for. It also offers better curation tools, enabling collectors to create and manage collections of their favorite NFTs.

OpenSea Pro also boasts faster transaction times and lower gas fees than the regular OpenSea platform. This is due to its integration with a Layer 2 solution called Polygon. Transactions on Polygon are faster and cheaper than on the Ethereum network, which is the main blockchain used by OpenSea.

Another advantage of OpenSea Pro is its dedicated customer support team. OpenSea has received criticism in the past for its lack of customer support, and OpenSea Pro aims to address this by offering a dedicated team that is available to answer questions and resolve issues.

OpenSea Pro is currently in beta, but it’s already making waves in the NFT community. Its advanced features and improved user experience make it a strong competitor to other platforms, including Blur. If you’re an NFT collector or seller, it’s definitely worth checking out.

NFT Royalties Explained: What Are They & How Do They Work

Posted on by Anthony Georgiades

NFT royalties are payments sent to the creator of an NFT each time it is resold on the secondary market. NFT royalties function similarly to traditional royalties. In business, for example, the owner of a product receives a percentage of the sales or profits. 

In the case of NFTs, the creator can set the royalty percentage during the minting of the NFT.

So, while NFT royalties make it possible for an artist to earn recurring revenue on their work (as long as it’s being re-sold in secondary markets), they’ve been a point of dispute for the various parties.

The following guide explores how NFT royalties work and more. 

How Do NFT Royalties Work?

NFT royalties are calculated as a percentage of the sales price specified by the creator. However, this is not a standardized method as each NFT marketplace, like OpenSea and LooksRare, will use different smart contracts to calculate and handle NFT royalties. If the royalty fee calculation ends in a remainder, it can be rounded up or down to 5 or 10 percent. 

Royalties apply to almost any type of NFT, whether physical or digital. These can be in-game items and collectibles from blockchain games, artwork, PFPs, tokenized music albums, videos, etc. 

The underlying smart contract makes sure the process of each secondary sale is carried out accordingly, depending on the platform. After the sale is verified, the smart contract reserves a percentage, delivering it to the creator’s cryptocurrency wallet. The currency of payment is usually the one supported by the platform. For example, OpenSea supports Ethereum and Polygon, an Ethereum sidechain, so the internal economy runs using ETH.

The percentage of the price sale is pre-defined by the creator, typically 5% – 10%, and this is predefined in the minting stage. So, whenever you buy an NFT directly from the person or project who created it, and then you re-sell it, 5% or 10% of that secondary sale goes to the creator. It’s similar to a company’s shares being traded in the stock market after being sold in an Initial Public Offering (IPO).

An NFT will have a royalty percentage fixed. Some people may think that royalties fluctuate with the market; it’s actually the sale price of the NFT that varies through time and therefore causes variations in the amount of profits creators receive. Price fluctuation will depend on multiple factors, most commonly: market demand, scarcity, and utility.

Why Are NFT Royalties Important?

NFT royalties are a way for digital creators to capitalize on the value of their work through secondary sales. No matter who owns the NFT, a smart contract will ensure the creator receives its fair share.

It’s not just about the minting price; NFT royalties are an appealing (and necessary) source of income for creators. Last year, over $1.8 billion worth of royalties were paid out to creators of Ethereum-based NFTs. 

Depending on how well an NFT or a collection is sold, royalties can generate a substantial amount of profits in the long run. In 2021, Beeple, a popular NFT artist, launched an NFT artwork called Crossroads and received around $6.6 million in royalties.

Pros and Cons of Royalties

NFT royalties, while at first glance can be a simple concept, have become a frustrating topic for marketplaces, creators, and buyers; all clashing on how to properly define the sale process so each party benefits somehow. This caused marketplaces and NFT platforms to devise and employ new royalty methods, such as optional creator earnings (explored in the section below).

First, NFT royalties allow artists to generate passive income while their work is being sold in secondary markets. It also gives creators an idea of how much value their NFT is garnering through time. The more popularity it acquires in the market, the creator’s reputation strengthens —most likely. 

In the case of Beeple, for example, “Everydays – The First 5000 Days” became the artist’s most well-known work of art, selling for $69 million. His subsequent work didn’t need much promotion as he already established a name in the community, helping him profit millions in royalties from secondary sales.

The cons of NFT royalties would be the price volatility —digital creators cannot expect a steady stream of income from royalties as NFT prices could (and most likely will) fluctuate in short periods of time.

Also, some NFT traders that want to speculate resales don’t like the idea of paying a fair share to creators. In 2022, some NFT marketplaces like X2Y2 eliminated royalties from their platforms and instead enforced optional royalties, which outraged digital artists and caused a sharp decline in trading volume. 

Optional Royalties

Optional royalties, or optional creator earnings, allow NFT owners to choose whether or not they want to pay creators a percentage each time they sell their NFTs. In 2023, several NFT marketplaces jumped on this trend, like OpenSea and LooksRare.

LooksRare eliminated default royalties and now grants optional royalties. This means buyers can choose to pay royalties at checkout, making NFT trading more profitable. However, the platform distributes 25% of platform fees to creators and collection owners.

Other NFT marketplaces can provide different types of NFT royalty systems. For example, Ditto Music allows fans to acquire shares in songs from their favorite bands and get paid monthly royalties via Bluebox, the company’s blockchain platform. 

Popular NFT Marketplaces Offering Royalties

Not all NFT marketplaces offer NFT royalties. Here’s a quick list of the most popular platforms with the best royalties:

  • OpenSea: the largest NFT marketplace by volume, offers optional royalties with 0.5% as the minimum for the creator.
  • LooksRare: offers optional royalties, while creators will automatically receive 25% of trading fees.
  • Nifty Gateway: enforced royalties; the marketplace takes 5% of the sale price plus 30 cents to cover credit card processing fees.
  • Rarible: enforced royalties; the marketplace takes 1% on the seller side and 1% from the buyer side for service fees.
  • SuperRare: enforced royalties; the marketplace takes 15% of the primary sale. Each secondary sale will distribute 90% of the sale to the collector, and the original artist receives a minimum of 10% as a royalty.

Final Thoughts: The Future of NFT Royalties

NFT royalties have been a fairly contentious topic lately. Marketplaces, artists, and collectors alike have differing opinions when discussing an ideal royalty system that benefits all the parties involved. However, NFT royalties have helped all kinds of artists globally create a better source of revenue for their work. 

In the art world, royalties are a way to protect artists from having their work unjustly sold without giving them a fair share of the profit. In NFT music, for example, royalties play a slightly different role. NFT albums have become a popular way for artists to sell 99.9% of their work to fans while giving them a small percentage as royalty. This not only allows a broader connection between the artist and the fans but also eliminates intermediaries, like music labels, who take a considerable cut of their revenue. 

What Are NFT Smart Contracts & How Do They Work?

Posted on by Andrew Amarosa

NFTs, wouldn’t exist without smart contracts, and digital agreements written with computer code and deployed on a blockchain. Their main function is to execute one or multiple actions if conditions are met, often following simple “if/when-then” statements, e.g., if X is true, then Y will happen. 

These programs automate execution, and workflow, and streamline the outcome of an agreement between one or multiple parties without the need for an intermediary. These actions, for example, could be the transfer of funds from one wallet to another, storing an NFT, locking deposited funds into a liquidity pool, and more

NFT smart contracts have an important role in keeping the NFT ecosystem healthy and honest Some of their most important functions include handling royalties, ensuring the NFT is unique and non-replicable, verifying ownership rights, and enabling access to exclusive NFT merchandise or events (NFT projects usually throw around exclusive benefits to those who buy a specific NFT from their collection).

What are NFT Smart Contracts?

The versatility of NFT smart contracts plays a key role in the development of the metaverse and the Web3 industry. 

NFT smart contracts are smart contracts specifically designed to create the relatively complex requirements of NFTs, such as provenance, non-fungibility, authenticity, and the hosting on a blockchain network. 

First, let’s have a quick refresher on what a smart contract is. Then we’ll explore how they’re used in the NFT world. 

Smart Contracts: Benefits and Main Functions

Smart contracts are being applied to a wide variety of industries –home sales, supply chain, data sharing between multiple institutions, digital identity, banking —the list is long. 

For example, blockchain supply chain solutions counter the typical setbacks within this industry (data disparity, labor shortage, reliable shipping source, etc.) using smart contracts to automate the shipping process by keeping track of items, administrating and structuring important data, and performing specific tasks if conditions are met.

Some of the main benefits of smart contracts are:

  • Transparency and trust: they facilitate transactions for multiple users in a network without them having to know or trust each other. Everything is carried out by the smart contract and not the user, and participants in a private and public blockchain can see them.
  • Speed, lower costs, and accuracy: by eliminating intermediaries and paperwork and only executing actions they’re programmed to do when terms and conditions are met.
  • Versatility: smart contracts can be programmed to perform a wide variety of tasks, and can be reprogrammed after being deployed on the blockchain to fix bugs or eliminate vulnerabilities.
  • Security: smart contracts are highly secure programs since transaction records are encrypted.

Creating an NFT with Smart Contracts

Minting an NFT refers to the process of converting digital files, like jpegs, videos, and sounds, into an NFT recorded on the blockchain, making it available for everyone to see and purchase. When you mint an NFT, you’re playing with the underlying smart contract that defines the properties of your asset.

Most people experience minting an NFT through a designed, user-friendly website where all you do is press a button that says “MINT NOW” after connecting a wallet, but you can actually mint an NFT directly from its smart contract.

The smart contract assigns the ownership of the NFT to the buyer, but if they decide to sell it at some point, the smart contract of the NFT will automatically transfer ownership rights to the new owner —if conditions and terms are met. 

If an NFT is minted, NFT marketplaces like OpenSea would use another set of smart contracts to carry out the auction. For example, a popular auctioning method is a Dutch auction, which is usually created using an ERC721 NFT smart contract (explored below).

Minting NFTs has become much simpler than when they were introduced in Ethereum’s early days. SmartMint by Pastel Network, for example, is a no-code way to design and deploy an NFT smart contract. 

NFT Smart Contract Standards

There are several types of smart contract standards for creating NFTs; ERC-721 and ERC-1155 are the most widely common. ERC stands for Ethereum Request for Comment, and they refer to a set of technical guidelines for creating smart contracts or digital assets to run on the Ethereum network. 

ERC-721 is the first standard designed for the creation of non-fungible tokens, and it strictly requires all tokens to be non-fungible and have their own unique metadata. ERC-721 only supports NFTs, and each NFT can only be transferred in a single transaction, which tends to  cause congestion if network activity is high. 

On the other hand, ERC-1155 supports the transfer of multiple batches of NFTs and supports the conversion of fungible tokens (such as ERC-20) into non-fungible tokens, and vice versa. Typically, projects building blockchain games will use ERC-1155 to move their NFTs due to the higher level of versatility. 

Ethereum is the most popular option for creating or using NFT smart contracts. Other blockchain networks can have their own set of NFT smart contract standards. Still, a small problem is that, by not having a universal standard, NFTs created on different networks, such as TRON, for example, cannot be traded on marketplaces that support Ethereum, or Ethereum-related chains only like Polygon.

The Role of NFT Smart Contracts in the Metaverse

The metaverse refers to a digital ecosystem in which creators, artists, players, and anyone can explore virtual landscapes, play, socialize, interact with other users, buy and sell NFTs —and much more. 

The metaverse, popularized by Web3 projects like Decentraland and The Sandbox, is, therefore, an opportunity to bridge the financial world with the digital world, but the physical world also jumps in on the equation; physical real estate can be purchased as NFTs, using an underlying smart contract to carry out the process. 

NFT smart contracts in real estate eliminate the burden of intermediaries and hefty paperwork by granting (and verifying) the ownership and rights of a property to the respective party. One famous example of this is Michael Arrington, the founder of TechCrunch and Arrington Capital, who sold his apartment in Kyiv as an NFT.

Final Thoughts: NFT Smart Contracts and You 

NFT smart contracts are the technical backbone of the digital collectible industry. There are several NFT smart contract templates from different blockchains, each competing to provide the best technical guidelines and feasibility to users, NFT projects, and marketplaces.

That being said, NFT smart contracts are already playing a key role in the development of Web3 beyond PFPs of Bored Apes or digital samurais like Azukies. 

NFT smart contracts underpin a trustless and efficient pathway for everyone in the decentralized world to interact with NFTs. Blockchain gaming projects, companies and corporations from traditional industries such as fashion and food and beverage, and financial entities have taken a stab at what might be the next iteration of the internet —and smart contracts are the main pillar of the ecosystem.

2022 In Review & 2023 Roadmap

Posted on by Tiffany Behnam

2022 was a big year for Pastel Network. In 2021, we made a massive shift to focus on opening our infrastructure such as Sense and Cascade to the entire Web3 ecosystem. By the end of 2021, we were poised to increase exposure and bring our vision of an ecosystem supported by Pastel’s suite of products to fruition. Despite market conditions, we kept our foot on the pedal to develop and refine Pastel’s mission critical infrastructure technology and seek out new partnerships and collaborations. We worked tirelessly to deliver new solutions to the market.

Below, we recap some of our largest achievements of 2022 including the Cezanne Mainnet Release and launch of SmartMint.

Cezanne Mainnet Release — Our Biggest Upgrade Yet

After having been under development for over 8 months, we released Cezanne in August as our largest release to date. Cezanne marks the beginning of a new chapter for the Pastel Network. The release brings countless improvements to both end-user & NFT functionality — such as registration, minting, transferring, and trading — alongside unrestricted access to advanced protocols like Sense and Cascade via interoperable Open-APIs, seamless composability, improved token economics, and the most powerful protocol standard for the Web3 ecosystem.

This upgrade includes:

  • Improvements to NFT Minting and Collections
  • Support for NFT Transfers, Trades, and Auctions
  • Interchain account identification via PastelIDs
  • Cross-chain network access via Web3 APIs
  • Dramatic upgrades to Sense (our near-duplicate NFT detection protocol)
  • Enhancements to Cascade (our distributed NFT storage protocol)
  • User-friendly utility services via PastelUp
  • Improvements to network optimization and security
  • And more!

SmartMint by Pastel — A No-Code NFT Minting Platform.

SmartMint is a no-code NFT minting platform where creators can easily create, manage, and mint NFTs on their own custom smart contracts. The tool also provides creators with additional peace of mind as it leverage Pastel’s infrastructure for near-duplicate NFT detection (Sense) and permanent NFT data storage (Cascade). SmartMint enables creators to mint NFTs on Ethereum, Solana, Pastel, and more.

SmartMint by Pastel enables creators to do what they love without the hassle and complexities of minting and deploying NFTs across various platforms and blockchains. Easily create smart contracts and NFTs in seconds via our no-code tool powered by Pastel’s advanced technologies for guaranteed NFT security, storage, and counterfeit protection.

Below is a detailed list of all our accomplishments from 2022.

2022 Overview of Pastel Network

  • Partnership with Nervos: to provide permanent storage to and protect their NFT ecosystem against NFT copymint, fraud & scams
  • Launch of the SuperNode Founder Program: this program was created to reward early network users/participants for their contributions and activity in Pastel’s ecosystem as well as encourage long term decentralization.
  • Ambassador Program: this was launched to strengthen the Pastel Community and ensure its growth and long term social media success.
  • PSL Listed on KuCoin: KuCoin began the trading of Pastel’s native utility token, PSL, on the KuCoin Exchange and commenced a PSL Staking Program
  • Cezanne Testnet Release: Cezanne brings countless improvements to both user & NFT functionality such as registration, minting, transferring, and trading.
  • Collaboration with Polygon Studios: to bring Sense and Cascade to the Polygon NFT ecosystem
  • Milestone Launch of SmartMint: a no-code NFT minting platform where creators can easily create, manage, and mint NFTs on their own custom smart contracts. The tool also enables creators to mint NFTs on multiple networks while leveraging Pastel’s infrastructure for near-duplicate NFT detection (Sense) and permanent NFT data storage (Cascade).
  • Partnership with Ava Labs: to bring Sense and Cascade to the Avalanche NFT ecosystem
  • Partnership with Parity Technologies: to bring Sense and Cascade to the Polkadot NFT ecosystem
  • SmartMint Banff Upgrade: refined functionality of SmartMint’s core workflows, added a number of features to enhance user experience and minting capabilities, and extended SmartMint compatibility to support minting NFTs directly on Solana.
  • Cezanne Mainnet Upgrade: having been under development for over 8 months, Cezanne is Pastel’s largest release to date that brings significant enhancements to the Pastel blockchain and improved functionality.

2023 Roadmap

This year, we aim to capitalize on the momentum we created over the past year and focus on what is vital for Pastel Network to continue to cement ourselves as the preeminent Web3 protocol standard. We will continue to execute our vision across interoperability, user experience, and versatility.

In 2023, we are focused on:

  • Expediting development release cycles of Testnet and Mainnet upgrades — such as with versions Monet and Van Gogh;
  • Building stronger cross-chain bridges, specifically with Ethereum Polygon, and Polkadot;
  • Enhancing SmartMint and developing new features;
  • Refining user and partner experience with the roll-out of new technical resources and tools;
  • Expanding our network of partners across more L2s, DApps, enterprise user-cases, native L1s; and
  • Further increasing our exposure to the community of technical users, non-technical users, and creators.

In spite of the broader uncertainty in the market and ever-changing landscape, we believe that delivering upon our roadmap will position Pastel for success in years to come.

Please see below for Pastel Network’s target 2023 release schedule. Note that all releases and milestones are subject to change.

Q1 2023

Mainnet Upgrade: Monet Release 1.2

  • Supernode Storage Challenges— A novel mechanism by which Pastel Supernodes verify that other nodes are following the rules of the protocol and storing all files they are supposed to be
  • Self-Healing — Intrinsic storage redundancy of Cascade to replace lost or missing symbol files resulting from Supernodes leaving the network
  • Supernode Health and State Challenges
  • Sense Stabilization — Includes refactoring of the core protocol and asynchronous execution

Explorer

  • Upgrade for additional features and analytics including support for parsing of comprehensive ticket data and additional historical statistics

OpenAPI

  • Production OpenAPI 2.0 supported via Mainnet
  • UI/UX for user account management

Network Tools

  • Release of Testnet Faucet

Smartmint

  • Integration of Pastel’s Sense & Cascade protocols
  • Additional network support (Binance Smart Chain)

Documentation/Services

  • Complete overhaul of documentation including client setup docs for Node, Walletnode, and Supernode
  • Endpoint exposure via PastelID RPC

Business Development Tools

  • Cascade Demo for third party partners

Q2 2023

Mainnet Upgrade: Monet Release 1.3

  • Further support for ownership transfer —Gifting of NFTs, Bridging NFTs and assets across Ethereum, enhancement of PastelID
  • New PastelId APIs to work with light wallets
  • PastelId Blockchain-less API Mode — API execution via light clients (i.e., does not require running a full copy of the blockchain)
  • Wallet Enhancements — Support for new address types and additional functionality such as import/export
  • Objectless Ticket APIs — Buy, sell, trade and return both created and signed TXs as ‘hex’ instead of submitting it directly to the blockchain

Open API

  • ERC-721 NFT functionality with to bridge and Wrap/Unwrap
  • API for ownership transfer (e.g. gift, wrap/unwrap PSL/wPSL)
  • API to expose set of core Pastel APIs to work with blockchain-less API, such as acceping ticket TXs

Network Tools

  • Release of DevNet
  • Streamlined support for multiple networks (across Mainnet, Testnet, and Regtest)
  • Continuous running of automatic stress tests

SmartMint

  • PFP Generator
  • Additional Network Support (Pastel, ImmutableX)

Documentation/Services

  • PastelId blockchainless API mode

Bridges

  • Ethereum
  • Polygon

User Tools

  • Pastel Hub — Browser-based application that interacts with Wallet via Web App and support consumer facing services for direct exposure to just Sense and Cascade

Q3

Mainnet Upgrade: Van Gogh Release 2.0

  • Hardening access protection to NFT and Cascade files — IP whitelisting layer (e.g. Supernodes will only respond for file access calls from other registered Supernodes)
  • Activation of WN-2-SN-2-SN encryption
  • Sense Enhancements— Support for additional file types
  • Bug fixes

Open API

  • “Host your own OpenAPI” package — dockerized or containerized solution that any user can acquire and run to have their own OpenAPI server for whatever purpose)

Light/Mobile Wallet

  • Browser extension wallet

SmartMint

  • Additional Network Support (Flow, Avalanche)

Documentation/Services

  • PastelId blockchainless API mode (see above)

Bridges

  • Polkadot — Includes the native deployment of a Parachain to seamlessly interact with the Polkadot ecosystem

Q4

Mainnet Upgrade: Van Gogh Release 2.1

  • NFT Auctions — Add functionality to run various auction formats
  • Sense Enhancements — Includes sharding, correlation optimization techniques, and tSNE
  • Client Reputation Tracking — Include across various client types to aggregate various indicators like Supernode storage challenges, successful registrations, and manual user complaints
  • Bug fixes

Security / Infrastructure

  • Harden against DDOS attacks (random IPs via VPN / whitelist / blacklist)
  • Simple load balancer

Business Development Tools

  • Sandbox for Layer 1 Partner PoC

Bridges

  • Avalanche, Solana

About Pastel Network

Pastel Network is a fully decentralized, developer-friendly layer-1 blockchain serving as the preeminent protocol standard for non-fungible tokens (“NFTs”) and Web3 technology.

Pastel allows for the development of third-party decentralized-applications (“DApps”) to sit on top of its Network, enabling developers to enjoy the scalable registration features, storage processes, and security of the broader ecosystem. Lightweight protocols such as Sense — which was built to assess the relative rareness of a given NFT against near-duplicate metadata — and Cascade — which conducts permanent, distributed storage of underlying NFT data — can be integrated cross-chain across various layer-1 blockchains, layer-2 protocols, or other third-party apps.

Pastel is managed by world-class developers, cryptographers, and technologists, supported alongside an experienced and extensive network of marketers, influencers, and third-party agencies. Pastel is backed by key stakeholders including Innovating Capital, a prominent venture fund.

For more information on Pastel Network, visit https://pastel.network/.

Originally Published on Pastel Network’s Medium

What Does Minting Mean When It Comes to NFTs?

Posted on by Anthony Georgiades

Minting is the process of creating an asset on the blockchain. It’s the process used to create non-fungible tokens (NFTs,) which are blockchain-based tokens that prove ownership of an item such as a piece of music, profile picture, or image. 

They first grew in popularity in 2021, with collections like Bored Ape Yacht Club and CryptoPunks making international headlines for their huge price tags. Since then, brands such as Nike and Adidas have created their collections, doubling the number of collections in just one year. 

So what exactly is minting an NFT? How does minting work, and what does it cost? In this article, we’ll answer each of these questions: how long it takes to mint an NFT, the most famous mints, and how an NFT gas war can impact the minting price.

What Is Minting An NFT?

Minting an NFT is the process of creating an asset stored on the blockchain, where its authenticity and ownership are proven. The blockchain itself can’t be edited, which makes ownership indisputable.

Minting an NFT is usually completed on platforms like OpenSea, which provides users with the tools to mint their collection. In addition to these tools, creators will also need the art they plan to use and details of unique accessories and features. Some general knowledge about blockchain technology is also useful but not essential. 

To mint a collection, creators will need a crypto wallet with the cryptocurrency needed to put their collection on the blockchain. Most NFTs are created with Ether (ETH), though Solana (SOL) and Cardano (ADA) are also popular options. 

After paying all fees and uploading the necessary files to create a new token, the platform you use will register your new asset on the blockchain, which can be listed on exchanges to generate a crypto income,

How Does NFT Minting Work?

Minting For Creators

As a creator, minting an NFT lets creators create scarcity, secondary earnings, and verified ownership. Creators can create limited edition pieces, specialized collections, and more, all of which are validated on the blockchain. 

Minting also lets creators build communities and perks for collectors who buy their NFTs and generate a passive income through “creator fees,” which charge a small percentage of each secondary sale. 

Creators can complete the process on platforms like Solsea and Opensea, which cover all complex coding, allowing creators to focus on the art. 

Minting For Collectors

As a collector, minting allows you to become part of a community. When minting from a new project, collectors become the first-ever owner of a particular NFT. Minting from a new collection is like buying a pack of collectible cards; you never know how rare the NFT will be. 

Minting as a collector requires you to go to the developer’s website. On the website, there will be an option to “Mint.” Connect your wallet, pay all fees, and your NFT will arrive in around 30 minutes. 

How Much Does Minting Cost?

The cost of minting depends on the “gas price” (transaction fee.) This is paid to the blockchain and will vary depending on the time of day and overall activity. Minting an NFT can cost as little as $0.01 but can go as high as $500 to a few thousand dollars. If gas fees are particularly high when minting an NFT, you can always return later to mint at a lower price. Just make sure the collection won’t sell out before then!

How Long Does It Take to Mint an NFT?

Minting an NFT can take anywhere from 30 minutes to 3-4 hours, depending on how experienced you are with the platform. 

The actual minting process is the stage at which your NFT is published. Before minting, you need to create the art for the collection and decide how many NFTs you plan to create and how you plan to promote the collection.

Most Famous Mints

CryptoPunks

CryptoPunks was first released in June 2017 and became the most popular NFT collection of all time. What makes this mint famous is that it was completely free. Anyone with an Ethereum wallet could claim a CryptoPunk.

Following its release, many collections replicated the 10k profile picture trend, and CryptoPunks went on to sell for millions. As of December 2022, CryptoPunks remains the most valuable NFT collection on the planet. 

Quantum 

Quantum is commonly cited as the first NFT ever minted. It was minted in May 2014

(May 2014) on a site known as Namecoin. After its initial mint, Quantum was forgotten about for years until going on auction at Sotheby’s in June 2021, where it sold for over $1 million. 

The Eternal

The Eternal is the fastest-selling NFT collection to be minted, selling out in just seven minutes. It was released by Anthony Hopkins, who partnered with NFT company Orange Comet. It was sold on 13th October and showcased 1000 NFTs consisting of 10 unique animation NFTs and 990 unique images. 

What Is an NFT Gas War?

An NFT gas war is a bit like a bidding contest with too many bidders. It starts when the demand for an NFT is higher than its supply- for example when a popular new NFT collection is released. This increase in demand causes the blockchain to slow, and consequently, some investors tip blockchain validators to speed up the transaction. As a result, the gas fee increases based on the tip. 

To beat other bidders, investors will keep paying higher fees until most investors can’t afford the gas fees. This causes the overall traffic to decrease and prioritizes the highest bidders, which can be frustrating for investors with smaller budgets as it could price them out completely. 

It’s important to note that gas fees will also differ based on the platform and the time of day. In some situations, the gas fee can be higher than the listed sale price of the NFT. Therefore, it’s important you research the gas fee before selling or buying an NFT. 

Final Thoughts: Minting Isn’t As Complex As You May Think 

Minting an NFT isn’t quite as complex as it’s made out to be. While you need to consider factors such as gas fees and the platform to mint, once you have the designs in place, most platforms will take care of everything for you. Be diligent with your research beforehand and ensure that the gas fee is within your budget- the last thing you want to do is bid for an asset only to realize you can afford the gas. 

Minting is a great way to make money as a digital creator. As NFT technology advances, its use cases and widespread adoption will also increase, making it a great time to get involved in the market. 

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