{"id":10429,"date":"2023-02-14T15:54:34","date_gmt":"2023-02-14T15:54:34","guid":{"rendered":"https:\/\/www.bitnovo.com\/blog\/?p=10429"},"modified":"2025-09-10T15:23:00","modified_gmt":"2025-09-10T15:23:00","slug":"what-are-nft-tokens-and-how-do-they-work","status":"publish","type":"post","link":"https:\/\/www.bitnovo.com\/blog\/en\/what-are-nft-tokens-and-how-do-they-work","title":{"rendered":"What are NFT tokens and how do they work?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Alternar tabla de contenidos\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-are-nft-tokens-and-how-do-they-work\/#history_of_nft_tokens\" >History of NFT Tokens<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-are-nft-tokens-and-how-do-they-work\/#how_does_an_nft_token_work\" >How does an NFT token work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-are-nft-tokens-and-how-do-they-work\/#use_of_nft_tokens\" >Use of NFT tokens<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span><p>You may have heard about NFT tokens or\u00a0<strong>non-fungible<\/strong>\u00a0tokens. Today we will tell you all about them. These tokens are the\u00a0<strong>solution<\/strong>\u00a0that allows us to create objects on the\u00a0<strong>blockchain<\/strong>\u00a0with unique, indivisible and unrepeatable qualities.<\/p>\n<p>These tokens, in a nutshell are special cryptographic tokens that are responsible for representing something unique. They are not\u00a0<strong>exchangeable<\/strong>\u00a0unlike other cryptocurrencies such as Bitcoin and most\u00a0<strong>fungible<\/strong>\u00a0tokens.<\/p>\n<p>As I said, NFT tokens are\u00a0<strong>unique, transferable, indivisible<\/strong>\u00a0and have the ability to prove their\u00a0<strong>shortage<\/strong>. Therefore, one of their main functions is to create provable digital scarcity. They can provide a\u00a0<strong>digital property<\/strong>\u00a0and enable cross-platform file operability.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"history_of_nft_tokens\"><\/span><strong>History of NFT Tokens<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>Most users think that the origin of NFT tokens began with the creation of Ethereum, however its origin is in<strong>\u00a0Bitcoin<\/strong>. This is because during the years\u00a0<strong>2012 and 2013<\/strong>\u00a0in Bitcoin began the development of\u00a0<strong>Colored Coins<\/strong>. This was a special type of token that offered the possibility to use BTC coins and the network to represent other assets, unique objects or tokens.<\/p>\n<p>The creator of this idea was\u00a0<strong>Yoni Assia<\/strong>\u00a0and it all started with the presentation of a paper where he explained his idea. As a result of this presentation, projects such as OmniLayer, Bisq, CounterParty and RSK among others were born. With this, the first NFT token known as Rare Pepe was born. It is worth noting that this token is still active today in the\u00a0<strong>CounterParty<\/strong>\u00a0and Bitcoin network, accumulating its value.<\/p>\n<p>However, not everything is idealized. The Bitcoin programming language known as\u00a0<strong>Bitcoin Script<\/strong>\u00a0is not configured for tasks such as NFT tokens. This causes designing highly interactive NFT platforms to become challenging. This is where\u00a0<strong>Ethereum\u2019s<\/strong>\u00a0role in its development comes in.<\/p>\n<p>Thanks to Ethereum\u2019s ability to make\u00a0<strong>smart contracts<\/strong>\u00a0it is possible to create more complex NFTs. Because of this feature Ethereum managed to become the largest NFT platform in the entire crypto network. They are expected to get even better with the use of\u00a0<strong>ERC-20 and ERC-1155<\/strong>\u00a0standards. These allow creating much more powerful\u00a0<strong>NFT<\/strong>\u00a0tokens\u00a0<strong>easily<\/strong>\u00a0through a shared standard and highly integrable to various services.<\/p>\n<p>Ethereum and Bitcoin are not the only platforms capable of creating NFT tokens, as\u00a0<strong>blockchains<\/strong>\u00a0such as TRON, Solana, Tezos and EOS also have this capability.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div id=\"image_1883287166\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img fetchpriority=\"high\" decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/04\/Qu%C3%A9-es-un-Token-NFT1.jpg\" sizes=\"(max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/04\/Qu\u00e9-es-un-Token-NFT1.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/04\/Qu\u00e9-es-un-Token-NFT1-300x205.jpg 300w\" alt=\"Qu\u00e9-es-un-Token-NFT\" width=\"768\" height=\"526\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/04\/Qu\u00e9-es-un-Token-NFT1.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/04\/Qu\u00e9-es-un-Token-NFT1-300x205.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/04\/Qu\u00e9-es-un-Token-NFT1.jpg\" data-sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"how_does_an_nft_token_work\"><\/span><strong>How does an NFT token work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>NFT tokens do not have a fixed operation, as this may\u00a0<strong>vary<\/strong>\u00a0depending on the\u00a0<strong>platform<\/strong>\u00a0where they are executed. It all depends on the\u00a0<strong>blockchain<\/strong>, since each one has\u00a0<strong>capabilities<\/strong>\u00a0that condition the tokens in one way or another.<\/p>\n<p>To see it more clearly, let\u2019s take the example of the Ethereum network. The NFTs of this network present\u00a0<strong>differences<\/strong>\u00a0with respect to the NFTs of other networks such as\u00a0<strong>TRON<\/strong>\u00a0at the internal level. These differences are not very noticeable, as they are mostly small\u00a0<strong>adjustments<\/strong>\u00a0to ensure the compatibility of smart contracts with the structure of the blockchain where they are executed.<\/p>\n<p>Otherwise, the tokens follow a certain functioning dictated by some\u00a0<strong>parameters<\/strong>, rather standards that follow the structure of\u00a0<strong>ERC-721 and ERC-1155<\/strong>. After the creation of these two standards Ethereum developed tools that make it easier to develop NFT platforms.<\/p>\n<p>This is achieved by providing both\u00a0<strong>standard smart contracts<\/strong>\u00a0with certain functions that every NFT needs for its control and development. Therefore, all ERC-721 and ERC-1155 can\u00a0<strong>create, modify, transfer or destroy<\/strong>\u00a0NFTs.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>&nbsp;<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"use_of_nft_tokens\"><\/span><strong>Use of NFT tokens<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>The uses of NFT tokens are countless. Currently many of them are used in\u00a0<strong>game development<\/strong>\u00a0or for\u00a0<strong>digital collections<\/strong>. Yes, they are collectible. Many are interested in their rarity and have a high value to their owners.<\/p>\n<p>Over time, the gaming industry has become more and more interested in this field. To understand it better, if we investigate about some Role Play Game we may be making use of NFT tokens for the\u00a0<strong>representation<\/strong>\u00a0of objects within the game. The idea is that such objects are extremely rare or unique in the game, as this makes it more\u00a0<strong>valuable<\/strong>\u00a0to the player.<\/p>\n<p>The best thing is that the games of this class have a market where we can\u00a0<strong>exchange<\/strong>\u00a0these objects. Thanks to this capability, an in-game economy can be created with valuable objects. This would be the real\u00a0<strong>application<\/strong>\u00a0of these tokens in the gaming industry. Thanks to this, the game developer company could earn large amounts of\u00a0<strong>money<\/strong>.<\/p>\n<p>Regarding collectibles we can talk about\u00a0<strong>chromes<\/strong>, paintings, curious images and even memes. All these collectibles can be\u00a0<strong>represented<\/strong>\u00a0by an NFT and can be worth millions of dollars. They can be<strong>\u00a0traded<\/strong>\u00a0or sold in markets that offer these transactions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span>You may have heard about NFT tokens or\u00a0non-fungible\u00a0tokens. Today we will tell you all about them. These tokens are the\u00a0solution\u00a0that allows us to create objects on the\u00a0blockchain\u00a0with unique, indivisible and unrepeatable qualities. These tokens, in a nutshell are special cryptographic tokens that are responsible for representing something unique. They are not\u00a0exchangeable\u00a0unlike other cryptocurrencies such as [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7964,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[185],"tags":[],"class_list":["post-10429","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-en"],"_links":{"self":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10429","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/comments?post=10429"}],"version-history":[{"count":2,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10429\/revisions"}],"predecessor-version":[{"id":24657,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10429\/revisions\/24657"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media\/7964"}],"wp:attachment":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media?parent=10429"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/categories?post=10429"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/tags?post=10429"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}