Introduction
In the previous article, We Demonstrated How to build an application using Algorand and PureStake API. Here we further demonstrate another Important Topic, which is Minting NFTs. So we will be going to learn how to create Algorand Standard Assets(ASAs)
What are Algorand Standard Assets (ASAs)
Algorand Stanard Assets (ASA) provide a standardized layer-1 mechanism for representing all types of assets on the Algorand Blockchain. These can include fungible, non-fungible, restricted fungible, and restricted non-fungible assets. Example asset types are :
| FUNGIBLE TOKEN | NON-FUNGIBLE TOKEN | RESTRICTED FUNGIBLE TOKEN | RESTRICTED NON-FUNGIBLE TOKEN |
|---|---|---|---|
| - In-game Points - Stable Coins - loyalty points - System credits - Cryptocurrency | - In-game items - Supply chain - Real Estate - identity - Certifications - Collectables | - Securities - Gov's issued Fiat - Certifications | - Real Estate - Ownership Registries - Regulatory Certifications |
What is a Non-Fungible Token(NFT)
NFT is a mechanism that allows the purchaser of your products to verify what they have purchased while ensuring that what you will selling cannot be traded. It enables participants in an ecosystem to ensure what they and what value they hold will not be affected by any other user or service.
It also prevents third-party players from making copies of what you are selling, which is essentially what happens in the case of digital products that can be duplicated and sold.
Non-fungible tokens represent unique digital assets. One NFT can't exchange for another, which represents the same thing in the same way. For example, one token might represent a cat, while another represents a house in monopoly.
How to create NFTs
We are going to create NFT using Algorand Standard Assets(ASAs), which are constructed into the protocol and created using different types of transactions. This is distinct from some other blockchains where a smart contract is necessary to represent assets. But here you just need to specify a few parameters to identify it as an NFT and link to the metadata so that potential owners have the information they need to validate the integrity of the asset. For instance, you just need to set the total amount of units you want to create for the asset to 1 and set the number of decimals to 0. This ensures you create precisely one unit of your Algorand Standard Assets(ASA) and can't divide the newly minted asset. However, you can set the number of decimals to any number according to NFT Standard up to the protocol limit.
