What is an NFT collection?
Introduction to NFT collections
Non-fungible tokens (NFTs) have brought new life to the collectibles, memorabilia, and art markets since they took the world by storm in 2021.
By tokenizing real-world and intangible items using blockchain technology, NFTs have made it possible to transparently and immutably establish proof of ownership over anything.
According to recent data, over tens of millions of people have already purchased these types of digital assets.
Many of these NFTs belong to a broader body of work, known as an NFT collection.
How do NFT collections work?
While each NFT is unique, many of the most popular NFTs are part of a larger body of work known as an NFT collection.
A single NFT collection can consist of many individual NFTs, in the same way Andy Warhol’s “Campbell’s Soup Cans” series contains 32 different artworks.
Oftentimes, non-fungible token collections follow a particular aesthetic theme and include a wide variety of unique traits. Different combinations of traits allow creators to incorporate varying degrees of rarity throughout their NFT collections.
For example, the famous Profile Picture (PFP) NFT collection, CryptoPunks, consists of 10,000 different pixelated characters. Differentiating these characters are three tiers of traits: Punk type, attribute, and number of attributes.
Within the first tier, there are four Punk types. "Male" is the collection's most common Punk type, while "Alien" is the more rare type. Next, there are 87 different attributes.
These include clothing items such as tiaras, chokers, and welding goggles, as well as physical attributes like rosy cheeks and big beards. Finally, Punks can have no attributes at all or as many as seven.
If you want to learn more about the NFT collection that kicked off the NFT revolution, you can check out the Kraken Learn Center article What are CryptoPunks?
Crypto Punk #5822 is one of the rarest CryptoPunks in the collection. In addition to being one of only 9 Alien types, it also bears the ultra-rare bandana attribute. This combination gives the NFT a uniquely high rarity ranking.
Rarity ranking tools are something many NFT marketplaces offer to help prospective buyers easily identify how rare an NFT is within its associated collection.
If you want to learn more about how to track the rarity of different NFTs, you can check out the Kraken Learn Center article What is an NFT rarity ranking?
How do you create an NFT collection?
Creating an NFT collection might sound daunting, but dozens of platforms now exist that handle every part of the process for you. The best part is, no coding experience is required.
One Mint, NFT-inator, and UniqMyNFT are just a handful of example applications that allow people to create their own NFT collections without coding. These vary in price and complexity, but can be a good solution for those who want to launch a unique NFT collection fast.
It's important to remember that once you've created a collection, you'll need to store the metadata safely. Interplanetary File System (IPFS) is the most common system used. You can find the official IPFS instructions for NFT storage here.
Why NFT collections are important
NFT collections have emerged as a revolutionary and dynamic force within the digital realm.
In just a few short years, NFTs have transformed the way many people perceived, valued, and interacted with the collectibles market.
They are a way for creators to represent unique items that all fit within the united theme of a larger body of work.
As technology and the market evolve, it's likely artists and their communities will continue pushing the boundaries of what is possible with NFT collections.
Why buy or create an NFT collection?
Buying an NFT that belongs to a collection can be advantageous for many reasons. A key factor being access to its corresponding NFT communities.
If you want to learn more about the community benefits of NFT ownership, you can check out our blog post Why buy an NFT: Community membership.
NFT communities most often exist primarily as online forums for connecting like-minded enthusiasts, granting early access to new launches, and organizing in-person events.
Another beneficial factor is liquidity. Collections released by highly sought after artists, major brand labels, or new up-and-coming talent can sometimes attract many prospective buyers and trading volume. For NFT holders trying to flip their assets for a profit, higher trading volume often makes it easier to find a new buyer for these digital asset.
NFT collections aren't just confined to digital art. Blockchain-based games, called play-to-earn games, also incorporate NFT collections. These collections often represent game items and characters that players use in the game. Purchasing these types of NFTs may grant players increased abilities and boost their revenue-generating opportunities.
For NFT creators, launching NFTs as part of a collection opens the door to several opportunities.
Beyond creative expression, the blockchain-based nature of NFTs can allow NFT creators to automatically receive creator earnings from secondary market sales of their works. By releasing large collections of NFTs, they stand to potentially earn from multiple secondary market sales, as opposed to relying on single NFTs to sell and resell.
NFT collections also invite a larger number of buyers into a creator's community. Different rarity levels can allow buyers with lower sums of money to access the collection. This factor may help boost interest in any future NFT collection launches, and encourage the creation of new community-driven utilities around popular collections.
Community-inspired merchandise centered around the collection, or holders offering unique promotional discounts on products or services to other collectors, are all examples of these additional utilities.
Ready to buy an NFT?
Purchasing your first NFT can be an exciting and rewarding experience.
By exploring popular NFT marketplace sites and participating in public mints and pre-sales, you can expand your digital collection.
Remember to set up a secure crypto wallet and follow best practices to protect and store your non-fungible assets safely.
Embrace the world of NFTs and enjoy the unique and creative possibilities it offers.