Non-fungible tokens (NFTs) have exploded in popularity in recent years, becoming an essential part of the digital landscape. NFTs are a type of crypto token that represents a single asset. They function as verifiable proof of authenticity and ownership within a blockchain. NFTs can represent real-world items such as works of art, real estate, property rights, and individual identities.
Despite the promise of NFTs, the public nature of the blockchain often makes it difficult for buyers to feel like the true owner of their tokens. In this article, you will learn about private NFTs and how they are made.
Public NFTs vs Private NFTs
Private and public NFTs are two types of NFTs. By nature, they are both non-fungible, meaning they are non-divisible tokens and hold their own separate values. Records of subsequent transactions for both private and public NFTs appear on the blockchain.
However, despite the similarities, the fundamental difference between private and public NFTs is how ownership is displayed. Private NFTs enable private ownership, ensuring that assets and transactions do not need to be exposed to everyone. On the other hand, ownership and all transactions relating to traditional NFTs are open to everyone. In other words, anyone with a traditional NFT can be openly identified.
Private NFTs solve this problem by protecting the visibility of ownership with private NFTs –– validation of fungibility occurs without opening verifiability to everyone. This means that the validation process takes place without compromising private data, including transfers and proofs of authenticity. Unlike public NFTs, private NFTs can obtain these privacy features for the following main reasons:
Private metadata: Unlike public NFTs built on Ethereum, Binance Smart Chain, Solana, or other similar platforms, private NFTs provide an optional private metadata field. This option unlocks use cases like NFT art with embedded secret links to high-quality images, hidden abilities, and gameplay items.
Private property: Private ownership is supported by private NFTs, so all properties and transactions can be hidden from the public.
Access control: Private NFTs allow creators to choose who has full access to their content.
Currently, private NFTs are rare. Therefore, if an individual wishes to make the content private, they will typically sell a public NFT which grants access to the private content through a private Discord server.
How to create a private NFT
Minting is the process of tokenizing a digital file with cryptography. Tokenization turns an asset into a digital token that can be stored, moved, and recorded on the blockchain. Although there are many NFT markets where you can start hitting, the following discussion will focus on the Secret Network.
What is the Secret Network?
The secret network is touted as the first blockchain with default data privacy, allowing users to build and use privacy-preserving apps without permission. This unique feature secures applications, protects users, and opens up hundreds of new use cases for Web3.
Secret NFTs are NFTs with programmable privacy features that live on Secret Network. Unlike Ethereum and Solana NFTs which are public, secret NFTs can be classified as private NFTs. To accomplish this, the privacy aspects of Secret Network’s SNIP-20 standard used for secret tokens have been adapted for NFTs, with a new standard called SNIP-721. The SNIP-721 standard retains all of the privacy attributes of SNIP-20 while allowing assets to be non-fungible.
How do you do secret Mint NFTs?
The typing process can be broken down into five steps:
- Buy SCRT: The Binance platform supports the SCRT/USDT trading pair. To buy SCRT, place a market buy order.
- Configure the Keplr wallet: Keplr Wallet is an open-source, non-custodial decentralized wallet application (dApp) that supports all Cosmos-SDK based blockchains including Secret Network and SCRT.
- Transfer SCRT to your Keplr wallet: Withdraw SCRT from your chosen exchange to your Keplr Wallet Secret Network address.
- Wrap SCRT in sSCRT via the Keplr wallet: When you wrap SCRT in sSCRT, you make the tokens private. These private tokens are what you will use to create secret NFTs. Choose the amount of SCRT you want to convert to sSCRT and click Convert.
- NFT Mint Secret: Finally, go to the Secret NFT mint site that you are going to mint. Next, connect your Keplr wallet and locate and click on the Mint button. It is important to note that you should only connect to the minting website using official project links, as phishing scams are common.
How to make NFT art
After hearing that someone paid $69 million for a digital painting of Beeple, it’s understandable why so many artists and designers are flocking to the NFT space. More and more people want to know how to make NFT art in hopes of getting rich quick or boosting their online presence as a public figure.
The first step in creating NFT art is choosing the artwork. In theory, NFTs can represent any digital file. You can make an NFT of a text, a piece of music, a video or a digital painting. After all, NFTs themselves are not assets; they are a token form of an underlying asset that exists on the blockchain. It is important to note that simply creating an NFT does not mean that people will buy your art. As a creator, you need to give value to the underlying asset in some way, such as providing access to exclusive content.
Once you have chosen your digital asset, determine the platform you want to use to create the NFT. If you are interested in creating a private NFT, click here for a step-by-step guide to creating your first secret NFT on the secret network.
Can NFTs on Ethereum be private?
Generally speaking, traditional NFTs built on Ethereum do not support private ownership or private metadata (metadata is descriptive information that identifies your communications and other activities). The Ethereum blockchain is not privacy priority by default. However, following ERC-721, with the use of a custom mint method and a pointer to the off-chain asset via an NFT’s metadata (for more information, click here), the blockchain Ethereum may allow privacy-enabled NFTs. Indeed, this method allows NFT owners to interact with private data via off-chain data stores
What are private NFTs used for?
The unique attributes of secret NFTs enable many use cases, as this infographic illustrates:
Source: Secret Network
Are NFTs a joke or are they here to stay?
Ultimately, while it is true that the majority of NFTs today will lose value in the long run, there is huge untapped potential in the NFT market. NFTs extend Web3 and have the ability to generate value by redistributing ownership power to creators and the community. These benefits include storing an individual’s medical records without compromising confidentiality or proving ownership of any piece of content or intellectual property. As the market grows, private NFTs will continue to play an important role in improving the privacy and security of creators and collectors within the space.