How Much Does it Cost to Create an NFT and What is the Proof of Cost?

How Much Does it Cost to Create an NFT and What is the Proof of Cost?

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The advancement of blockchain technology has continuously simplified processes to the point it is now much easier to create assets and interact with the various protocols (the so-called decentralized applications), making them accessible to all with just a login.


The whole said “assets” can also be understood as NFTs, the recent phenomenon that has been driving the Internet by storm as tremendous opportunities arise, more and more people have been searching for ways to create, sell or exchange their own NFTs.


Lucky for us, the various steps including extreme designing and coding required to create NFTs have been greatly simplified and have made some platforms real points of reference in this sector, for example, OpenSea that we find on the Ethereum blockchain.


Even if the various steps are simple to carry out, there are always some things and information that are necessary to understand and evaluate, especially when launching a crypto project, such as NFTs, which will then be based on the blockchain that we will have chosen and expertly evaluated.


Speaking of the creation of any NFT, we see that it is necessary to have cryptocurrencies to be able to pay the cost of the transaction and to do so we will have to recover these cryptocurrencies.


The simplest and most immediate way to do this is to go through an exchange centralized Coinbase type.


But to understand how many cryptos we have to buy, we must know how much it costs to complete the whole process that goes from the creation of the NFT and its collection to the sale of the NFT itself, as for each transaction we will have to spend a variable amount.


The cost of these transactions, however, depends a lot on the blockchain on which we are operating and also on the intrinsic value of the crypto asset as with the increase in the price of the crypto but with the same consumption of fees, we will pay a higher cost.


How much does it cost to create an NFT on Ethereum?


Let’s analyze this cost in more detail. We must first note the type of platform we are going to choose to create our NFTs, as the common and less experienced user will tend to use these “intermediaries” rather than develop it himself smart-contract necessary to realize its NFTs.


Furthermore, there are various costs that we must keep in mind, such as that of the creation of the collection, those related to the actual NFTs, and those related to the sale of the NFTs, therefore in general, the whole process involves 3 different transactions and all these they will have a cost based on the complexity of the transaction, the cost of the asset at that time, and also the congestion of the Ethereum network, since, in peak moments on this blockchain, the cost of the transaction tends to increase a lot.


Knowing these dynamics, there is no fixed price to pay for these transactions and therefore they vary, but we can estimate and approximate the relative cost of all these operations which ranges between €30 and €500 per single NFT, but there have been even peaks of even € 3000, so in the long run, using this blockchain could turn out to be more expensive than the collection and the NFT itself.


”But I use Polygon to save money!”


How many times have we heard this sentence, and each time we must always point out different things that most people ignore and are not aware of, as there are several problems and disadvantages in using this blockchain:

  • First of all this blockchain is already quite saturated with current transactions and this means that as transactions increase, the blockchain starts to flood and slow down, and to solve this problem, the cost of the transaction is increased as has already been done in past, but this implies that in the long run, we will have the same current scenario as Ethereum that little by little the cost of the transaction has risen from those insignificant €0.05 to over €30 today, we are talking about an increase of 59900%!
  • Another disadvantage of using the same with OpenSea is the lack of transparency of the NFTs themselves on the blockchain side as, for the moment, the various NFTs created on Polygon are on servers maintained by OpenSea itself and therefore centralized, thus undermining the robustness of ours collection;
  • The prestige that a more important and “more expensive” blockchain gives to the collection itself should not be underestimated those who invest in NFTs tend to prefer collections on more important blockchains because if you already have to spend a lot to create 1 NFT, then the whole collection will involve a considerable cost and shows the will and the investment made by the creator himself on the outside, rather than a collection on Polygon costing a few tens of euros.

How to save on the cost of transactions?


What people often don’t know is that there is no need to use temporary systems to cover the exorbitant and unmanageable costs of Ethereum, but the wise choice is to check other blockchains and other decentralized platforms that allow you to obtain the same results, if not better results then the current ones.


One of these blockchains that offers a range of considerable opportunities is certainly that of EOS, as it not only can process over 900 million transactions per day and without crashing (Polygon already has problems with 8 million transactions), but in addition, the EOS blockchain itself is also carbon-neutral, i.e. all the energy consumed by this blockchain comes from renewable sources.


But the most important advantage of using this blockchain is its system of accounts that are easy to remember and use as they are composed of an alphanumeric string of up to 12 characters, and in addition, transactions on EOS always cost 0.0002 EOS or 0, 0002 euros, that with different wallets such as Anchor Wallet or Wombat Wallet, this cost is completely zeroed and we are creating NFTs at no cost (we are talking about the cost of the transaction only).


But even if transactions cost 0 on EOS, how can I demonstrate my commitment to the project and my investment?


A more than a legitimate question, and here one of the most important resources of this blockchain comes into play and that distinguishes it from the others, that is the RAM resource, which we can assimilate in the same way as mass memory, that is a hard disk or SSD, where it acts as a digital container for various information including NFTs.


And it is thanks to this resource that the collection obtains greater value, as if the classic 10,000-plus NFT project were to be built on the EOS blockchain, then we see that the amount to invest already has some zeros, a figure that is only a serious project has the ability and willingness to deal with.


What is the Proof of Cost?


This is also reflected in the skimming that an investor makes as he prefers projects where the team behind the development has already invested of his own, whether it concerns a new project or whether it is a new collection by an artist, as this expense that is done to create the project, we can assimilate it to a “proof of cost” that is a proof of expenditure that was made on the blockchain and that the team behind it had to go out to pay for the transactions.


The more one has invested in one’s project, the more it has greater credibility in the eyes of those who invest, actually selecting only those projects that are truly interesting and that can eventually lead to a profit.

Hoken Tech stands in this scenario, which thanks to the experience of its team that has chosen to focus on this blockchain and for the various advantages that we have illustrated, makes its NFT creation service on demand available to everyone. created to measure of the project and which is carried out by paying attention to all these aspects and also to the marketing and implementation strategy of the NFTs themselves, as a project may require only a few NFTs, while other thousands of NFTs, with obviously the various costs to be support to cover the cost of the blockchain quantified above all in the purchase of RAM on the EOS blockchain.


For those interested in knowing more details, you can send an email to the Hoken Tech team here: hokentechitalia@gmail.com

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