A Step-by-Step Guide to Creating and Selling Non-Fungible Tokens Built With Bitcoin Cash
In the summer of 2019, our newsdesk published a step-by-step guide on how to create a non-fungible token (NFT) asset by leveraging the Simple Ledger Protocol built on top of the Bitcoin Cash blockchain. The following guide is an updated walkthrough on the process of creating an NFT collectible using the blockchain network with artwork uploaded to the Inter-Planetary File System (IPFS).
How to Create an SLP-Based Non-Fungible Token Using the Electron Cash Wallet
Non-fungible token (NFT) assets have become all the rage in 2020 and into the new year. In 2021, NFT sellers have sold millions of dollars worth of NFT artwork and collectibles. NFT solutions have been prominent on the ETH chain, even though the process was first popularized on the BTC chain with the original Rare Pepe collection.
Token solutions and NFTs have also spread to other blockchain networks and back in 2019, news.Bitcoin.com published a walkthrough on how to leverage the Simple Ledger Protocol (SLP) in order to create an NFT. The NFT tech on the Bitcoin Cash network is still young and needs to grow more robust, however, it has matured a great deal since our original NFT creation guide using the SLP framework.
The process explained in the following article is an update of that step-by-step guide, and how a person can sell an NFT after the minting process. In order to get started, you will need the latest version of the Electron Cash SLP version (3.6.6). PGP signatures and file hashes are located at the project’s Github repository.
In addition to the wallet, you will also need a small fraction of Bitcoin Cash (BCH) to create and send SLP-based tokens. This is similar to the gas function used by Ethereum in order to mint and push ERC20 token transactions. However, you can create and send SLP tokens with only a nickel ($0.05) in order to follow along with this guide.
From here, you should download the desktop version of the Inter-Planetary File System (IPFS), which will allow you to upload a file to the IPFS network of nodes. Once there’s a small fraction of bitcoin cash (BCH) in your newly created Electron Cash SLP wallet, you can then proceed to customize a new SLP NFT1 type token.
The wallet’s interface has eight tabs you can choose from, and one of them says “tokens.” At this point simply press the “tokens” tab and at the bottom of the wallet, there’s another tab that says “create new token.”
This will open a window in the Electron Cash SLP version wallet that allows you to customize SLP tokens and make a single non-fungible asset as well. In order to complete my experiment, I created a token called “Hysteria (HYS)” and documentation on my NFT can be seen here. Using the wallet I entered the “token name,” “token symbol,” and the “document URL.”
This is where IPFS comes into play, because before you create the token, you need to upload the file to IPFS and after it is uploaded, you obtain an IPFS URL link. The IPFS link leads directly to the collectible’s artwork or text document file.
Continuing with the wallet customization fields after adding the IPFS URL link to the “document URL” field, you also need to make sure the “fixed supply” and “NFT Parent” tabs are checked as well. Because the NFT is non-fungible, the token does not have any decimals, which basically means it cannot be split into fractions.
Before creating the token, you can get an advanced look at the creation by pressing “preview” on the Electron Cash SLP wallet. If everything is satisfactory, you simply press “create new token,” and the minting process will begin.
Selling the BCH Crafted NFT and the Waifu NFT Faucet
The NFT that I created on Tuesday evening was minted at approximately 3/2/2021, 8:13:35 p.m. (ET) and confirmed at BCH block height 677,074. After minting HYS, I could choose to sell the NFT via the BCH NFT Exchange in a noncustodial and trustless manner.
The web portal BCH NFT Exchange also has a walkthrough guide so people can learn how to sell Bitcoin Cash-based NFTs. After learning the platform’s swapping process, you or anyone can simply press generate a swap transaction to create an onchain swap without risks from counterparties.
People interested in swapping BCH-based NFTs can visit the Reddit forum /r/slpswap/ in order to advertise an offer. SLP-based non-fungible token creators can also opt to sell their NFTs using the web portal memo.cash, which also hosts an SLP trading exchange.
Because Bitcoin Cash NFTs are still in their nascent stages, there needs to be a plethora of wallets that can recognize the IPFS URL links or some universal framework. For instance, there’s the website waifufaucet.com where people can obtain free and unique NFTs of 2D anime art that’s been minted on the BCH chain.
The creators of Waifu NFTs also have a “Waifu Research Telegram Group” which can be used to discuss Waifus and NFT technology. Currently, most wallets do not recognize IPFS URLs and the tethered artwork, which essentially means the NFT held in a non-compatible wallet doesn’t show a picture if there is artwork (jpeg, png file) attached.
This probably won’t be the case for very long, as SLP improvements have been relentless since the protocol was created three years ago.
What do you think about the Electron Cash SLP wallet and the ability to create NFTs on Bitcoin Cash with ease? Let us know what you think about this subject in the comments section below.