Algorand is the perfect layer 1 blockchain for NFTs. It’s fast, cheap and perhaps most importantly it is green. Thanks to the efficient network design, minting and transacting NFTs on Algorand uses very low energy consumption. Given the public misconception around NFTs being bad for the environment Algorand is the perfect example that this doesn’t have to be the case.
The NFT community on Algorand has been growing rapidly since early 2021. Since we launched in Septemnber ’21 we have seen the number and quality of projects explode and seen rapid growth in transaction volume. This has lead to the growth of NFT platforms such as marketplaces and analytics tools.
So let’s dive in, here’s the Goanna guide to “How to Algo NFT”
To interact with the blockchain you need a wallet provider. MyAlgo wallet is a browser based wallet that is the most widely supported across all platforms. The other popular option is the official mobile wallet, Pera. This has seen lots of adoption and a newly updated interface but isn’t currently as widely supported as MyAlgo.
Whenever using a blockchain wallet, ensure you keep secure backups of your Mnemonic seed phrase and never reveal this to anyone. It is best practice to use a hardware solution such as Ledger.
Algorand has a growing number of market places and each is starting to find their own niche. We have listed the main players in order of volume. Currently the majority of volume is through Rand Gallery which is the longest running and most established marketplace on Algorand.
Algorand Standard Assets
Algo NFTs are a little different to other chains. Where NFTs on Ethereum etc are often created as smart contract, Algorand uses a native ASA (Algorand Standard Asset) where each NFT is a unique token on the chain. Read more about ASAs here https://www.algorand.com/technology
Asset Opt In
Algorand has a unique “opt in” function. This means you can only send an NFT to a wallet which has “opted in” or added that specific ASA. This is helpful as can prevent mistakes sending to wrong wallets and also means people can’t spam airdrop you like on other chains. You opt in by clicking “add asset” within the wallets. When buying from marketplaces the optin part of the transaction is built into the process so it handles it for you automatically.
Primary Sales (Drops)
Due to Algorand using the native ASA standard in general NFTs are minted prior to being released in their first public sale. As a result various drop styles have developed, some of which are unique to Algorand.
Currently the most popular style of drop, shuffles, are essentially a “gumball” style release. All the NFTs are preminted and held in a shuffle wallet. Buyers can purchase an NFT and receive a randomly assigned one from the collection that isnt revealed until the purchase is complete. Both Rand Gallery and AlgoXnft support shuffles and have facilities for scheduling, limiting no per wallet and white listing addresses.
Other methods include, Auctions, Dutch (Reverse) Auctions and Buy it Now Listings. These tend to be less widely utilised since the development of the shuffle drop. Smaller artists who release their work over a period of time as opposed to a single release are more likely to use one of these alternative methods.
Viewing your NFTs
Once you have purchased your NFTs they will show up in your wallet but the major wallets aren’t always ideal for viewing your collection of NFTs.
You can enter wallet addresses into the marketplaces to see which NFTs they are holding, including your own. You can also connect your wallet to the marketplaces and from here it is easy to send NFTs as you can see the items visually which isnt supported on all wallets. If you end up going full degen and having hundreds of NFTs being able to sort by collection and see the one you are looking for is a big time saver.
Secondary Sales (Buying)
To confrim NFts are official you can look up the creator address and check against the registered creator address on platforms like NFTexplorer. If using Rand Gallery they only allow verified collections to be bought/sold so you dont need to worry. With some of the other marketplaces you need to be more careful. The safest way is to discover NFTs that are for sale by starting on NFTexplorer and Asalytic.
Secondary Sales (Selling)
Create listings on the popular marketplaces. They will support a range of options including buy it now, auctions and also allow you to receive offers on your listed NFTs.
When buying or selling NFTs on the secondary market, there will normally be royalties attached to the sale. This is included in the advertised sale price and automatically deducted from the transaction and sent to the creator by the marketplace.
The standard royalty amount is around 5%. While Rand Gallery empowers the creators to set their own % and then enforces that on the platform, AlgoX allows the seller to decide, even setting amounts as low as 1%. With royalties being vital in allowing creators the funding to develop and innovate we advise secondary sellers to follow the 5% rule.
If doing p2p trades you can use swapper sites to create an atomic swap. You set the price, the NFT to be traded and the receiver address. It then generates an link to share with the buyer. The buyer can only buy with the wallet used as the receiver address. If the full amount isnt included the swap will fail. This allows you to trustless trade with people even for high value NFTs.
You can purchase an NFD which allows you to link your wallet address to a specific on chain domain name. This makes it super easy to send and receive assets, for example we use goanna.algo amongst other names.
Non Fungible Domains: https://nf.domains/