Non-fungible tokens (NFTs) emerged as a solution to combat counterfeiting and replication of various unique assets. As a result, NFT is a modern way to represent ownership of unique assets which are digitally stored on the blockchain.
However, with NFT applications expanding to physical NFTs with real-world assets rather than just digital art, collectibles, and in-game assets, several creators are beginning to sell physical assets as NFTs.
Physical NFTs are digital ownership tokens that are linked to a physical asset. These assets combine digital and physical components and can be used to establish ownership of real-world assets such as paintings, clothing, jewelry, property deeds, tickets, and more.
Practically any physical asset can be tokenized and offered for sale as an NFT, as this is the most appealing application for NFTs. In light of this, the question remains: how do you sell physical assets as NFT?
How To Sell Physical Items As NFT
Since ownership is properly documented on the blockchain and less manual work and fraud are involved, asset tokenization has evolved into a modern sales process. Anyone can mint and sell physical NFTs by following simple procedures. So, here's the simple approach.
This entails manually digitizing the physical item and creating a digital twin of it on the blockchain. For example, if you want to sell a painting as NFT, take a high-resolution professional photograph of it and create a virtual file with all of the painting's information documented, such as size, the technique used, the author, and so on. These details are metadata stored on the blockchain and contain the link between the documents, indicating ownership of the painting.
After digitizing your physical NFTs, you must decide which blockchain to store them on. Choosing a blockchain network is determined by the physical item and the potential marketplace where the NFT can be sold.
As a result, it is critical to recognize that blockchains have different strengths and weaknesses and that each blockchain has its community with its own set of values, some of which are fundamentally opposed to those of other blockchain communities. So, knowing where your physical item fits is critical.
Once you've decided on a blockchain, you can begin minting the item as NFTs to be listed and sold on any trustworthy NFT marketplaces of your choice. However, it's important to remember that an NFT can't be changed after it's been minted. It would be best to be careful while creating your NFT metadata and finalizing all details before minting and linking digital assets to physical items.
On the other hand, you'll need to set up storage for the physical items and decide how they can be claimed. Remember that collectors may prefer to remain anonymous, so it is up to you to contact the collector and make any necessary delivery arrangements. However, this process can be complicated when the item is sold on a secondary market.
Benefits Of Selling Physical Item As NFTs
Provenance and Authenticity
The ability to prove authenticity and provenance is the most significant advantage of creating physical NFTs because tampering or forgery is nearly impossible because the product's digital record is stored on the blockchain.
Royalties on Secondary Sales
You can only profit from the first sale when you sell a physical item, even if the buyer resells it to someone else for a higher price. However, when you sell your physical item as NFT, you can set a percentage of royalties and earn recurring profits each time that item is resold. As a result, Physical NFT enables you to generate a steady income from your physical item.
Steps Involved In Selling A Physical Item as an NFT?
Here is a breakdown of steps on how you can sell your physical item as an NFT:
- Create a crypto wallet that holds your cryptocurrency and other digital assets.
- Create your unique digital assets from your physical item.
- Choose a trustworthy NFT marketplace.
- Connect your wallet to the marketplace.
- Upload the file you've created for the physical item
- Set a price to sell your physical NFT.
Furthermore, to access and use the NFT marketplace features, you must first have a crypto wallet containing the cryptocurrency that the marketplace supports. You can buy, sell and swap NFT tokens on Cwallet.
Cwallet allows you to deposit, withdraw, and swap any cryptocurrency fast and at the lowest possible fee. NFT tokens can be traded among the 800+ cryptocurrencies accessible on Cwallet. Whether doing a cross-chain swap or an "on-chain swap," Cwallet provides the lowest transaction fees.
Finally, regardless of the marketplace network you choose to sell your physical NFTs, you can transfer and view your NFT on Cwallet.
Cwallet does not charge any deposits, withdrawals, and token swap fees. Therefore, using Cwallet is absolutely FREE!
So, what are you waiting for?
Download the Cwallet NOW!