NFT Creating and Minting NFTs 2 — Questions and Answers
Question 1: What does 'lazy minting' mean in the NFT context?
- Minting an NFT with low-quality artwork
- Deferring on-chain minting until the NFT is purchased (Correct answer)
- Minting NFTs on a slow blockchain
- Creating NFTs without metadata
Correct answer: Deferring on-chain minting until the NFT is purchased
Lazy minting lets creators list NFTs off-chain and only triggers the actual blockchain minting when a buyer purchases, saving upfront gas fees.
Question 2: Which file format is most commonly recommended for high-quality NFT art that also supports animation?
- JPEG
- BMP
- GIF (Correct answer)
- SVG
Correct answer: GIF
GIF supports animation frames and is widely accepted across NFT marketplaces, making it popular for animated NFT art.
Question 3: What is a 'collection' in NFT terminology when minting art?
- A single NFT with multiple owners
- A smart contract grouping multiple related NFTs under one identity (Correct answer)
- A physical gallery displaying digital art
- An NFT stored on multiple blockchains simultaneously
Correct answer: A smart contract grouping multiple related NFTs under one identity
A collection is a smart contract that groups related NFTs together, giving them a shared identity, floor price, and metadata structure on marketplaces.
Question 4: When setting royalties during NFT minting, what percentage range is typical for digital artists on most platforms?
- 0–1%
- 5–10% (Correct answer)
- 20–30%
- 50–75%
Correct answer: 5–10%
Most NFT artists set royalties between 5% and 10% of secondary sale price, balancing collector appeal with ongoing creator revenue.
Question 5: What is the purpose of the 'token URI' stored in an NFT's smart contract?
- To set the NFT's market price
- To point to the metadata JSON file describing the NFT (Correct answer)
- To record the buyer's wallet address
- To store the image file directly on-chain
Correct answer: To point to the metadata JSON file describing the NFT
The token URI is a URL or IPFS hash pointing to a JSON metadata file that contains the NFT's name, description, image link, and attributes.
Question 6: Which of the following best describes 'on-chain' NFT storage?
- Storing image files on a centralized server referenced by the token
- Encoding the artwork and metadata directly into the blockchain itself (Correct answer)
- Uploading artwork to IPFS and linking from the token
- Keeping artwork on the artist's personal hard drive
Correct answer: Encoding the artwork and metadata directly into the blockchain itself
On-chain storage encodes the actual artwork data (often as SVG or base64) directly in the smart contract, making it permanent without external dependencies.
Question 7: What risk does an NFT face if its metadata is hosted on a centralized server (not IPFS or on-chain)?
- The NFT becomes non-transferable
- The metadata or image can disappear if the server goes offline (Correct answer)
- The royalty rate automatically resets to zero
- The NFT becomes visible to anyone on the internet
Correct answer: The metadata or image can disappear if the server goes offline
Centralized hosting means the server owner can remove or change the image and metadata at any time, potentially leaving buyers with a broken or altered NFT.
NFT Creating and Minting NFTs 2
What does 'lazy minting' mean in the NFT context?