Have you ever heard of the word NFT?
Do you know how important the term has become, especially in the gaming industry?
No right?
Although NFTs have gained a lot of popularity, a huge section of people don’t know about these NFTs or how they work, let alone the transformation they can bring to the gaming industry. This is why perhaps, they don’t know that to develop an NFT, one gets paid. Keeping this in mind, we have created a brief guide on what NFT is, its utility in the gaming industry, its connection with the metaverse, and the total cost of developing one NFT.
What is the average cost of making an NFT?
The cost of making NFT is subjective. It means the cost can vary and is usually controlled by several factors. Being a digital currency with no centralized value fixed for the development cost, you need to be prepared to see fluctuations in the cost of the same. Making an NFT is based on the minting process, the availability of smart contracts, the NFT marketplace chose, and the current supply and demand chain condition.
Perhaps this is why knowing more about the factors influencing the cost of NFT is crucial.
Factors on which the NFT making cost depends:
1. Account fees
The account fee is the amount you must pay once you make a user account in the NFT marketplace and incorporate your crypto wallet with the platform. You won’t be paying the same amount for different marketplaces because they set their charges, and you need to pay the exact amount to gain access to the marketplace and mint NFT.
2. Gas fees
Another factor on which the total minting cost of NFT will depend is the gas fee. Any charge application on the transaction of NFT will be listed under the gas fees. For example, if the blockchain on which the NFT was minted were high in demand, the gas fees would also be high. Similarly, if the transaction cost at the time of ownership transfer of the NFT was low, the overall cost for minting will also be low.
3. Technique chosen
Although NFT is mainly minted on a blockchain, several other technologies or techniques specifically can be used to process the minting of the tokens. For instance, one can mint NFT through the marketplace or existing cryptocurrency in the wallet. NFT is a smart contract initiated based on the Ethereum blockchain. Therefore, if a cryptocurrency is traded or exchanged on the Ethereum blockchain or in the form of ether currency, NFT can be minted. The minting cost will depend on the exchange transaction and the price of the ether token at that time.
4. Complexity
Another factor on which the cost of minting NFT depends is the complexity. Since it is based on smart contracts, the complexity will vary from one project to another. In addition, if the NFTs are mined for sole ownership of the crypto assets, the project’s complexity won’t be much. But if we consider the minting process for a high-end game where lots of NFTs will be needed or for the metaverse, the cost will be high due to the involvement of complex processes.
5. Listing fees
Once the NFTs are minted, one needs to list them on the NFT marketplace. Here also, a person needs to pay the listing fee as determined by the marketplace terms and conditions. Therefore, we can say that you need to pay a certain amount to book a slot where you can list the NFTs made and make them available for purchase. The listing fee depends on the type of marketplace you have chosen. So, thoroughly explore different marketplaces and then list the NFT.
6. Supply and demand
Lastly, the cost of making the NFT will also depend on the supply and demand chain. The higher the demand, the more the cost will be, and vice versa. On the contrary, if the supply of NFT is more, the cost of making one token will be much less.
Why is the cost of making NFTs so high?
NFTs or non fungible tokens are still a novice technology. Unlike cryptocurrency, which is already circulated in the trade markets, the number of NFTs in the liquidity pool is significantly less. Furthermore, it is a digital token that cannot be manufactured in the same way as physical currencies are made in mint. Software programming and development lifecycle are implemented to mine one NFT.
This is why the entire process is so complex that the total cost of making one NFT is so high. Besides, there is no hash program involved in NFT, so developers can easily develop new tokens and release them into the liquidity pool. The professionals often have to develop the tokens from scratch, making the total cost much higher.
How is NFT bringing revolution to the world?
We cannot ignore the potential of NFT in bringing revolution to the digital world. The non-fungible-tokens will guarantee ownership on purchasing any asset with it. It will play a huge role in the metaverse, especially in the virtual real estate market, where people can buy a piece of land by paying a certain amount and having NFT transferred to their name.
Similarly, there are several games where gamer can make enough purchases with NFTs and choose their avatars, get special weapons and accessories, and so on. Therefore, the technology will bring a huge revolution in the digital world alongside metaverse and web 3.0.
Although many people consider NFT to be similar to crypto, there are a substantial number of differences between them. For instance, crypto does not offer sole ownership unlike NFT. Therefore, the impacts of both these forms of digital currencies will be different in the future. NFT strongly relates to metaverse, which has been accepted widely across the world. Therefore, it can bring revolution in the way blockchain operates, especially the Ethereum blockchain.
Conclusion
Now that you know the cost of making one non fungible token, we are certain you can make a proper decision and invest the right amount to have the NFT. If you think the valuation of these decentralized entities is not up to the mark compared to cryptocurrencies or any other digital tokens, you don’t have to worry a lot.
This is because the use of NFT will increase once the concepts of metaverse and web 3.0 are accepted worldwide. The gaming industry has already allowed companies and gamer to deal with NFT instead of regular Fiat currencies, making the tokens popular and highly used. The investment sector is also accepting the tokens eventually. Therefore, the demand for new NFTs will soon skyrocket, and the overall cost of making one single token may increase due to the demand.
Juego Studios is leading a NFT game development company to help you create your next hit game. From providing the software and frameworks, all the way through development with cross-platform compatibility in Unreal or Unity3D – they have everything that’s needed for creating interactive adventures! They offer end-to-cross-platform apps as well as specialized game design for VR or metaverse projects.
