NFT is the latest trend in blockchain technology. According to an NFT market report, the NFT market has surpassed $40 billion in value by the end of 2021 and revenue has grown from $350 million in 2020 to $2 billion by 2021.
But how does that affect writers? What exactly are NFT books, and how are they different from digital books? And what are the best platforms for publishing NFT books? In this article. We will explore all these questions.
What is an NFT?
Before going into the details of NFT books, we must understand what NFT is.
Think of NFT as ownership of a digital file. The term itself stands for a non-fungible token, which is a digital asset that exists and is traded on a blockchain. This token is, by definition, non-fungible, giving it more value because of its digital scarcity. It can be anything digital, from artwork to video games and music.
Minting is the process of adding these digital files as NFTs to a blockchain. The best-known blockchain currently hosting NFT is Ethereum. Mining puts data in a public ledger that cannot be changed or deleted. This allows us to track all NFT transactions and sales.
However, NFT minting is not free; there is a fee to be paid to add these transactions to the public ledger. This cost is called a “gas fee” and is paid in cryptocurrency.
There are now many online marketplaces where these tokens are sold to investors. The transactions that take place between the seller and the buyer are governed by the smart contract as well as the royalties.
What exactly is an NFT book?
Now we understand how NFT works. So let’s take a look at the NFT books. Just like e-books, NFT books can contain interactive and multimedia elements. While e-books exist as downloadable files that anyone can purchase from online e-book retailers, NFT books can only be purchased from marketplaces on the blockchain, transferring ownership of books from the seller to the buyer—this does not include copyright. This makes it like a single digital asset, like buying the first edition of a printed book or a signed copy of the author.
Unlike e-books, the number of copies of an NFT book is limited, usually around 100. This applies to the NFT concept of digital scarcity. These books are also often offered as special editions with some unique advantages. For example, by purchasing an NFT book, the reader also unlocks a master class or gets a face-to-face interview with the author.
The other great thing about publishing NFTs to authors is that there can be a secondary market for resale where the author gets a percentage of every resale made. And since this book is in limited quantity, it is worth more than the normal e-book.
Why Should Authors Take Into Account Publishing NFT Books?
- Full ownership: Once you have printed your book as NFT, it belongs to you; This means you can sell it to anyone publishing company.
- Immediate compensation: Unlike publishing platforms where authors have to wait weeks or even months to receive royalties for their book when you sell an NFT book, you’re compensated immediately. This happens through smart contracts that exist on the blockchain and is executed after the sale has taken place.
- Extra value for your fans: You can add value to your NFT book by making it come with additional perks, such as an exclusive course, one-on-one consultation, or some sort of partnership opportunity. This will both increase your fan base and increase the value of the NFT for your fans.
- Increase in value over time: NFTs are treated more like memorabilia. This means that they often increase in value and popularity over time.
- Copyright Privacy: There is no room for piracy when it comes to NFT books, as every copy of the book, as well as its owner, is recorded on the blockchain. When ownership changes, royalties are paid.
- Royalties with each resale: Selling in the secondary market have royalties that you, as the author, can receive. So when the person who bought your book decides to sell it, you get a percentage of that sale and any subsequent transactions. This empowers authors and fans alike, giving them a sense of sensitivity and ownership over their brand.
What Aspects Should an Author Bear in Mind When Writing NFT Books?
If you decide to write an NFT book, you should think about the writing and publishing process and need to try to figure out what makes the reader want to read into your book. So before you do this, you need to consider:
- Create a community: However, one thing you have to keep in mind before starting the whole process is that you better have a community to support you. It’s hard for books by new, independent authors to get noticed in the sea of NFTs out there without a fan base.
- Limited number of copies available: Offering a limited number of copies increases the value of your book, making it more appealing and therefore increasing its price.
- Add extra value: Make the NFT book a special edition by adding additional resources, such as an illustration for a scene from the book or an interview with the author.
- Offer unique versions of books: Another way to add value is to make each copy of the limited edition NFT something truly unique, like a twist on the wording or the art of the book.
How to make an NFT book?
How much does it cost to make NFT books?
The cost of making an NFT book depends on the market you are in and how busy it is at the time you use it. For example, the first fee to create an account on OpenSea can vary from $70 to $300 and the good news is that they just announced a Collection Manager that allows merchants to create NFTs without paying gasoline.
Of course, this does not apply to all markets. That’s why you may want to keep an eye on gas prices to know the best time to cast, and you can also use a gas tracker, such as Ether Scan, to help you with that.
What are common royalties from selling NFT books?
Selling NFT books is different from using publishers, whether to publish digital or paper books. While publishers typically pay authors royalties ranging from 15% to 70%, depending on the publisher, when you sell an NFT book, you get the full price, minus commissions received by the market.
When your NFT is resold, you will receive a percentage of each subsequent sale. These are the royalties you receive, which typically range from 5% to 10%. In most markets, creators can choose the NFT royalty rate they want.
What is the best marketplace for NFT books?
It is only natural for new book-focused marketplaces to emerge given the burgeoning NFT marketplace. To increase the likelihood that your book will be seen, you might think about minting it on a book-specific marketplace in addition to the well-known NFT marketplaces like OpenSea, Rarible, and SuperRare.
The following are a few of the new NFT book markets:
Above I have shown you the instructions for the NFT book. There are several types of books that are suitable for investors, while others are better suited for artists creating and selling NFTs. There are also a number of tutorials available for everyone to use, and the good news is that they are all written for the inexperienced. Just be aware that NFTs are speculative and use caution when buying, selling, or investing and do so on a reputable marketplace like OpenSea or Nifty Gateway.
In the end, participating in NFTs will be fun and exciting. The NFT books will give you a good foundation to better understand and enjoy this fascinating technology.
If you are a startup, you have no experience in approaching NFT. Please contact Satom Venture Studio for support.