NFTs For Dummies
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Tiana Laurence. NFTs For Dummies
NFTs For Dummies® To view this book's Cheat Sheet, simply go to www.dummies.com and search for “NFTs For Dummies Cheat Sheet” in the Search box. Table of Contents
List of Illustrations
Guide
Pages
Introduction
About This Book
Foolish Assumptions
Icons Used in This Book
Beyond the Book
Where to Go from Here
Getting Started with NFTs
Introducing Non-Fungible Tokens
Beginning at the Beginning: What Is a Non-Fungible Good?
Exploring Uses for NFTs
Finding Out How an NFT Works
Buying NFTs
Why buy NFTs
NFTs as investments
Proceeding on Your NFT Journey
Owning Your Own NFT
Where It All Began: Non-Fungible Kitties
Blockchain for the masses
Not just a passing fad
The impact of NFTs
Democratizing blockchain
Representing ownership
Trading between users
Enabling smart contracts
Creating digital scarcity
Solving problems
The game mechanics of CryptoKitties
What’s In Your Wallet? Setting Up MetaMask
Setting Up Coinbase
Creating your Coinbase account
Verifying your phone number
Adding your personal information
Verifying your identity and adding your bank account
Adding funds to your wallet
Collecting, Breeding, and Selling Your Very Own Non-Fungible (Crypto)Kitties
Buying your first CryptoKitty
Using the Offer function
Breeding your kitties
The Future of NFTs
Dissecting the Anatomy of a $69 Million NFT
DIVING INTO THE DARK WEB
Redefining Property Rights (NFTs Are Not Just about Digital Art and Kitties!)
NFTs and Digital Property
Music, movies, and books
Photos and other digital art
Game assets
NFTs and Real Property
Homes, cars, and nondigital pets
Art, jewelry, wine, and other collectibles
Imagining the Possibilities
Buying and Selling NFTs
Getting In on the NFT Game
Knowing the Ins and Outs of Buying NFTs
Examining the success of early NFTs
The NBA’s Top Shot
Music artists
Internet memes
Unusual NFTs
Thinking about NFTs as an investment
Artist popularity
Blockchain security
Understanding the Risks of Hot Wallets like MetaMask
Comparing hot wallets
Weighing the pros and cons of hot wallets
Uncovering Your MetaMask Wallet
Installing MetaMask
MetaMask for Chrome
MetaMask for Firefox
MetaMask for Brave
Securing your MetaMask wallet for Chrome and Firefox
Buying Ether for Your MetaMask Wallet
Exploring NFT Marketplaces
Navigating the OpenSea of NFTs
Common token types on OpenSea
Buying NFTs on OpenSea
Creating your own NFT on OpenSea
The Nifty Gateway
Discovering Nifties and drops
Setting up a Nifty account and making a purchase
Rarible’s decentralized governance
Getting up and running on Rarible
Creating an auction with a royalty structure
Investing In NFTs
Understanding NFTs Are Not Cryptocurrency
Introducing NFT Investing
Deciding Whether NFT Investing Is for You
NFT Investing Strategies for Beginners
Valuing your NFT
Brand
Scarcity
Market
Choosing your strategy
Discovering the Best-Performing NFTs
Exploring Popular NFT Types
Digital art
Collectibles
Games
Music
Popular memes
Reporting NFT Gains and Paying Taxes on NFTs
Developing Your Knowledge: A Step-by-Step Guide to Programming Your Own NFT
What Is Ethereum?
Revealing the Ethereum Virtual Machine
Ether: The Gas That Fuels Your Transactions
The journey of a transaction
Compensating the (proof-of-) workers: What’s in it for the miners?
From happy hour to surge pricing: Determining a reasonable gas price
Setting your budget: Is the sky the (gas) limit?
Transaction fees
Scenario 1: Transaction successfully executes
Scenario 2: Transaction runs out of gas
The Blockchain: Where It’s All Stored and Secured
Ethash and proof of work: What makes Ethereum tamper-proof?
Miners and nonces and bears — oh, my!
How many “confirmations” until I’m actually confirmed?
Uncles and orphans
Hard forks: Updates to the underlying protocol
THE GREAT ETHEREUM CIVIL WAR
Smart Contracts Make the EVM Go Round
The nascent life of a smart contract
Exciting possibilities
Notable limitations
Oracles: How to Connect to the “Outside” World
Shining a Light on Ethereum’s Fundamental Structure
The big picture
Nuts-and-bolts of the blockchain
Gas essentials
Things that make the EVM an interesting place
Creating an Ethereum Account
Understanding Externally Owned Accounts
What it means to create an account
Private versus public keys
Digital signatures
Discovering Contract Accounts
Knowing the Difference Between Public Networks and Private Environments
Local development environments
Test networks
Main network
Preparing Your Accounts (on MetaMask)
Renaming accounts on MetaMask
Adding different ETH to different accounts
Funding your testnet account
Exploring the Ropsten testnet blockchain
“Disappearing” balances
Setting Up a Development Environment
Exploring Your Ethereum Solution Stack
Elements of the Ethereum stack
Here a stack, there a stack: Pre-made stacks
Put On Your Hard Hat: Constructing Your Environment
Setting up your local blockchain test environment
Connecting a custom (Ganache) network to your MetaMask wallet
Adding local (Ganache) accounts to your MetaMask wallet
Synching the Remix IDE to your MetaMask wallet
Deploying Your First Smart Contract
Working with Smart Contract Languages
Starting with the Solidity version pragma
Going from source code to bytecode
Key Elements of a Smart Contract
Data
Functions
Event logs
No Need to Reinvent the Wheel: Using Smart Contract Libraries
Ready for Takeoff: Launching Your Smart Contract
Beginning with a simple template
Compiling before takeoff
Deploying
Discovering Token Standards
Introducing Ethereum Development Standards
Ensuring interoperability and composability
Learning the ABCs of EIPs and ERCs
Understanding Standard Token Interfaces
ERC-20 token standard
ERC-721 non-fungible token standard
Other token standards on Ethereum
Building an ERC-721 Token
Writing and Compiling Your NFT
The code
The play-by-play
Deploying Your NFT
Deploying on Ganache
Deploying on Ropsten
Deploying on Mainnet
Nurturing Your NFT
Following your NFT on the blockchain
Interacting with your NFT
The Part of Tens
Ten Marketplaces for Your NFTs
The OpenSea Marketplace
The Axie Infinity Marketplace
The CryptoPunks Marketplace
The NBA Top Shot Marketplace
The Rarible Marketplace
SuperRare Marketplace
The Alcor NFT Marketplace
The Binance NFT Marketplace
The Foundation NFT Marketplace
The Crypto.com NFT Platform
The Ten Most Expensive NFTs
EVERYDAYS: THE FIRST 5000 DAYS
CryptoPunk #7523
CryptoPunk #3100
CryptoPunk #7804
CROSSROAD
OCEAN FRONT
CryptoPunk #5217
World Wide Web Source Code
Stay Free
CryptoPunk #7252
Index. A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
Y
About the Authors
Dedication
Authors’ Acknowledgments
WILEY END USER LICENSE AGREEMENT
Отрывок из книги
Welcome to NFTs For Dummies! If you’re curious about NFTs — their origin, use cases, and underlying technology — this is the book for you.
In this book, you can find helpful information and advice for exploring the world of NFTs. You can also find useful step-by-step guides that teach you how to set up a hot wallet to store NFTs, how to navigate NFT marketplaces, and even how to code up your very own NFT.
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Thus, our mutant apes are part of a greater decentralized ecosystem where records are kept in a public and trustless manner, which means that we don’t need a trusted central party, such as Bank of America, to maintain a reliable and secure system to track our mutant apes for us. In their peculiar way, these mutant apes are bringing further awareness to the burgeoning landscape of decentralized finance (DeFi) and decentralized autonomous organizations (DAOs). (To read more about DAOs, check out Chapters 4 and 6.)
The majority of NFTs are minted as ERC-721 tokens on Ethereum. Thus, as shown in Figure 1-6, the provenance of each token is memorialized on the public Ethereum blockchain. Each subsequent transaction is validated and executed by a distributed network of miners — much like the system securing the Bitcoin blockchain.
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