What is NFT

Non-fungible tokens (NFTs) are cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other. In the case of images, video, and audio, only the link to the digital asset is written to the blockchain, usually stored in IPFS.

NFT metadata, in addition to information about the asset, usually includes the creator's (author's) wallet, data about the smart-contract, sales history, instructions for marketplaces about the number of royalties transferred to the author, and much more.

In the case of generative art, if it is specified that it is stored on-chain (as in Art Blocks), all the code that generates the art is written to the blockchain. In most cases, the browser interprets this code, but other interpreters can also be used for this.

The creation of the NFT is called Minting. Minting refers to creating new NFTs on a blockchain, most commonly Ethereum. When you mint an NFT, you’re recording data that comprises a new NFT in a new block that’s then added to a blockchain.

Minting an NFT typically comes with fees. For NFT systems that use the Ethereum blockchain, this cost is paid in gas. Gas refers to the unit that measures the amount of computational effort required to execute specific operations on the Ethereum network.

Most of the NFT market is the game industry play-to-earn such as [Axie Infinity] and in-game items, PFP (profile picture) projects such as Crypto Punks and Bored Apes Yacht Club. A small part is occupied by the art market. The main platforms for selling art in the form of NFT are: