August 3, 2022

Intro to NFTs on Flow Blockchain

Written by: 

Flowverse

flowjames_

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Table of contents

Introduction to NFTs

  • What is an "NFT"?
  • What's a Flow "NFT" and why Flow Blockchain?
  • Can't I just screenshot an NFT, why do they have value?

Flow Blockchain Wallets

  • What's a Crypto Wallet?
  • How to set up and fund Dapper wallet
  • How to set up and fund Blocto wallet

Buying NFTs

  • Buying direct from the creator
  • Buying second-hand

Selling NFTs

What can I do with my NFTs

Introduction to NFTs

What is an “NFT”?

NFT stands for non-fungible token. In simple terms, an NFT is a one-of-a-kind digital asset. Like physical assets, NFTs can be sold by their owners for a profit (or loss...)

People buy NFTs for many reasons including collecting, investment, trading to make a profit, supporting a creator, to access an NFT-gated event or purely for the art. On the creator end, NFTs can be hugely beneficial as they can program into the NFT the ability to have a royalty every time the NFT is resold and passes hands.

There are many different use cases of NFTs including artwork, games, souvenirs, tickets real estate and more. One of the more widely-known NFTs is NBA Top Shot. NBA Top Shot enables people to own, sell, and trade official video clip highlights of the NBA's greatest plays and players. In this use case, the NFTs are like classic physical trading cards but digital, and people can  collect, trade and invest in them as an asset automatically without needing to keep the card in good condition, ship the card or manually verify its authenticity.

What's a Flow "NFT" and why Flow Blockchain?

A Flow NFT is an NFT with ownership tracked on the Flow Blockchain (Flow) instead of another blockchain like Solana or Ethereum. NBA Top Shot is built on Flow. You may have heard of very high fees on Ethereum to buy NFTs which can be even higher than the cost of the NFT you want to buy. On Flow there are no fees in buying NFTs. On top of this, Flow is the leading blockchain by energy efficiency requiring less energy to create than a Google search to create an NFT. You can check out Flow's energy use in this report.

Due to having no fees and being environmentally friendly, the biggest brands in the world have released their digital collectibles (NFTs) on Flow Blockchain including Dr Seuss, Billboard, NBA, NFL and the UFC.

Flow Blockchain's energy usage

Can't I just screenshot an NFT, why do they have value?

Screenshotting an NFT is a big no no. It's the equivalent to buying a fake Gucci shirt, or a replica of the Mono Lisa. Wearing the fake Gucci shirt does not feel good, and the replica Mono Lisa has nowhere near the value of the real art piece. NFTs enable people to track the true owner of an item i.e. who owns the real version of it whether it be a photo of a monkey, or a video highlight from the NBA or even a real-world property.

Flow Blockchain Wallets

What's a Crypto Wallet?

When you buy or receive an NFT, you store it in a crypto wallet. A crypto wallet is a piece of software that you store your cryptocurrency and NFTs inside of. It also enables you to send crypto and NFTs to other people's wallets and in many ways is like a bank account or a stock holding account.

There are several different types of wallets with varying features and levels of security.

On Flow Blockchain there are three main wallets: Dapper, Blocto and Lilico. Dapper and Blocto are the most widely used.

In most cases, you will need to create one of these wallets and fund it with the correct currency. Then when you go to the website to buy the NFT you will login with the wallet similar to how you'd login to a regular website with your Facebook, Gmail or Apple account.

A list of NFTs using the Dapper Wallet login can be found here. All other NFTs require either a Blocto Wallet, Lilico Wallet or use their own internal wallet. If an NFT uses it's own internal wallet, you will usually just be able to login to the website and pay with debit/ credit card avoiding the wallet creation process entirely. This is rare and despite seeming more convenient does have its own set of disadvantageous i.e. how decentralised is an application that uses it's own inbuilt wallet?

How to set up and fund Dapper wallet

How to set up a Dapper Wallet

To create a Dapper wallet you need to go to meetdapper.com. Next click the 'Continue to Dapper' button.

On the next page, you can either Continue with Google to create an account with your Gmail, or enter an email and password.

That's it, you're done!

How to fund Dapper wallet

One you have logged into your dapper account via click 'Home' from the left menu.

Then input the amount you want to add to the 'Add funds to your balance'. Agree to the terms & conditions and click 'Add Funds'

Select your payment method from the available options and follow the prompts.

Booooom, all done!

How to set up and fund Blocto wallet

How to set up a Blocto Wallet

To create a Blocto Wallet you need to download the Blocto app from this page.

Once the app is downloaded, open the app and either Sign In or Create an Account. (Pro-tip: Have your email handy to get the 6-digit code)

Next go to the 'Wallet' tab at the bottom of the screen, click the + button and add $FLOW to create your Flow wallet, done!!!

How to fund Blocto wallet

Add the token you need to purchase the NFT (usually this is $USDC, $FLOW or $FUSD) by clicking the + button on the 'Wallet' tab.

Then click the shopping cart button to the bottom right and then ‘Cryptocurrency’

From the drop down select FLOW (Flow), USDC (Flow) or FUSD (Flow) depending on which one you need to buy the NFT. Next, follow the prompts.

Sometimes the method above can fail so there are alternatives if you are having trouble getting $FUSD or $FLOW from the above method. Flowty cover these alternative methods well in their very useful article How to Acquire / Sell FUSD & FLOW

Buying NFTs

Once you have set up and funded both your Blocto or Lilico and Dapper wallet, you are ready to buy Flow Blockchain NFTs.

NFTs can be purchased directly from the original creator, or bought from someone who is reselling the NFT. This is the equivalent to buying a physical good like a t-shirt brand new or second-hand.

Buying direct from the creator

To buy a Flow NFT direct from the original creator, you can check out our NFT drop calendar for upcoming launches. Once you see a drop you like, you can click on the drop and then click "Go to Drop" to go straight to the website that will enable you to buy the NFT.

Buying second-hand

If instead you would like to buy an NFT from someone else, you can check out our NFT directory of all collections on Flow Blockchain. Here you can select a filter to choose NFTs in different categories such as Metaverse, Games or Sports. Then click on an NFT and click "Trade this NFT" to go to the marketplace which will enable you to buy it. Some NFTs also have analytics available. Click the "Analytics" button to view statistics of the NFT over time. If the NFT doesn't have the analytics button, you may also be able to view some high level stats on the Flowverse rankings page.

Selling NFTs

Once you have bought or acquired a Flow NFT, you can choose to sell it. To sell the NFT, you can go to the NFT directory on Flowverse and click on the NFT you want to sell. Then click 'trade this NFT' to go to the marketplace which will enable you to connect your wallet and sell your NFT. NFTs that can be sold once purchased are highlighted under the 'tradeable' tab.

What can I do with my NFTs?

Depending on the NFT, they can be used for many different purposes.

  • Access events: Some NFTs can be used as tickets or memberships to access real life or digital events. For example, Hoodlums allows you to access high profile parties.
  • Show them off: You can display NFTs publicly by setting your Twitter profile photo to be the NFT or setting up a web profile to display them on .find.
  • Access community: You can use your NFT as a ticket to login to certain websites that support it. For example, most NFT collections have a private Discord group where only holders of the NFT can chat and receive extra information.
  • Get airdrops: Holding some NFTs allow you to receive free extra NFTs called airdrops. Be on the lookout for which NFTs offer this. Some examples of this happening previously were Ballerz holders being airdropped the Sneakerz collection, Party Goobz holders receiving Party beers and Flowverse Socks holders getting a free Flowverse x Zeedz collab airdrop.
  • Investment: Many people view NFTs as a speculative investment i.e. buying NFTs and then selling if they go up in value.