An NFT, or non-interchangeable token, is a unit of record that is used to create a digital cast for any unique item. These can include: paintings, photos, videos, music, gifs – in short, any content that claims to be at least somewhat unique. They are a great value among collectors, gamers and art lovers, and are bought and sold through auctions.

These tokens are stored in what is known as a blockchain – a huge chain of blocks, each containing information.

A token is just a record in one of the blocks, and as a rule, there can be a lot of records of the same type. For example, each individual bitcoin is an exact copy of another bitcoin of the same type, making it possible to match them with a currency.

But what if you need to create a unique token that has no counterparts? The answer is NFT.

The main value of NFT is exclusivity
An NFT token is a way to translate unique items from the real world into blockchain. Each of these tokens is unique, indivisible and exists in a single number. In addition, the blockchain securely stores all necessary information about it.

The uniqueness can vary. Thus, the first SMS was sold for $150,000 and the first tweet of Jack Dorsey, the founder of Twitter, sold for almost $3 million.

How are files transferred to NFT-tokens?
There are many platforms where you can place your tokens. Some of them even have a narrow specialization – for example, only gaming items or only art.

The most popular are OpenSea, SuperRare, Foundation and Rarible. As a rule, the sites charge a commission in Ethereum cryptocurrency, or ether, as it is called in common parlance. The amount of commission varies, but it’s usually a few tens of dollars (this cost is due to the fact that the new token will need to be included in the blockchain).

What is cryptocurrency
The commission is always charged at the time the token is created, but depending on the site, it could be either immediately after the file is uploaded or at the time of sale.

Ways to make money with NFT
Although by design NFT tokens were created as an opportunity for creators of digital content to make money from collectors, gamers and just art connoisseurs, the main focus now is monetization of popularity.

The prototypes of NFT were colored bitcoins, which worked in a similar way
For example, Elon Musk, the founder of Tesla, auctioned off his tweet with a track about NFT for $1 million. In the end, it was never sold, but it attracted a lot of attention from online media.