A non fungible token (NFT) is a unique item, a token certifying it's one-of -a-kind such as drawings, music, original artwork, baseball and basketball cards, digital video or animations and even original written content, articles, research and the like which can be bought and sold and resold an unlimited number of times, using secure blockchain crypto token transactions such as Ethereum. The NFT allows eCommerce marketplace consumers to buy and resell original items, often abstract in nature, but ensures authentic ownership in a digital space, and certifies it's one of a kind, thus securing its value as unique.
So, a non-fungible token (NFT) is a unit of data on a digital ledger called a blockchain, where each NFT can represent a unique digital item, and thus they are not interchangeable. NFTs can represent digital files such as art, audio, videos, written content such as articles, research or books, even items in video games and other forms of creative work reports Smart-Results.net
To put it in simple terms of physical art collecting : anyone can buy a Monet print. But only one person can own the original using NFT. Terms or smart contracts, maybe attached within the NFT to expand opportunities for even greater value for unique items and content.
For example, a person can write an original research article, digitize and upload it for NFT eCommerce sale, then attached terms, say 10% residual income upon any future resales using an embedded NFT smart contract, wherein if the article content is resold, the original creator would automatically receive money with each resale of the unique item or content for life.
Here are the basics of creating NFTs :
An NFT is a digital file with a unique identity.
An NFT is built on a blockchain using specific token standards, most commonly Ethereum ERC-721.
Creating an NFT requires uploading your digital file to an NFT marketplace. NOTE : If your item is a large artwork painting use high resolution camera to photograph. If your item is smaller, try high resolution scanner to create digital file for NFT.
Blockchain allows you to verify the authenticity of an NFT, which is a large part of its appeal.
By having a one of a kind unique copy available in digital space on Internet marketplaces, creates scarcity i.e. a unique token, which drives up the value, and creates greater demand.
NOTE : Bitcoin cryptocurrency is very different from a NFT like Ethereum which enables ownership of a unique digital asset i.e. one-of-a-kind, art, music, card, video or image in digital space. The scarcity of owning a one-of-kind item makes the value much greater.
What is a Non-Fungible Token?
A Non-Fungible Token (NFT) is used to identify something or someone in a unique way. This type of Token is perfect to be used on platforms that offer collectible items, access keys, lottery tickets, numbered seats for concerts and sports matches, etc. This special type of Token is robust, so it deserves a proper Standard, and the ERC-721 is the solution.
What is ERC-721?
The ERC-721 introduces a standard for NFT, in other words, this type of Token is unique and can have different value than another Token from the same Smart Contract, maybe due to its age, rarity or even something else like its visual features, making it highly pliable.
What are the NFT Fees :
Like most early stage technologies, the NFT minting process to upload and certify an unique item in digital space is expensive and the standard process across platforms may differ. So, generally here are the NFT fees, you'll be facing to get started ...
Minting Fee or"gas fee" range from $1 to $1,000 for each item varies by platform
Digital Wallet conversion fee to convert your NFT tokens into actual dollars upon CASH out
NOTE : To start go slow using NFT marketplaces, and test listing one or two items for sale. Once you've experienced the process, you may want to try a few different platforms, as comparison. Then choose the one or two that best fit your eCommerce marketplace goals.
Like most of other early stage technologies, it will take a few years for the NFT marketplace and industry standard platforms to develop into a mainstream easy to use consumer application with lower NFT marketplace user fee terms. But the future for NFT marketplace eCommerce seems bright, given our digital world. And the features embedded within NFT applications is robust with tremendous promise long-term. Particularly, the ability to program "smart contracts" makes the NFT a potentially great way to sell and buy and resell items, and creates the unique ability of consumers to bid on items both abstract and physical assets which may change the business model for future retail sales, enabling the marketplace price controls to shift into a greater consumer demand metric. The ability to sell and buy abstract NFT images, video, audio etc. opens up whole new industries, and economic opportunities that provide new revenue streams reports Smart-Results.net