What is NFT? How to create an NFT?

The transition from the internet of information to the internet of value has been greatly accelerated by the emergence and maturation of digital asset protocols. Among them, non-fungible tokens (NFTs) represent the most important breakthrough in establishing ownership, authenticity and programmability for unique assets in the digital space. Moving beyond the initial speculative craze, NFTs in 2025 have reshaped into a structured asset class, deeply integrated into industries from art, to video games, to real world assets (RWA) management and digital identity. This report provides an in-depth look at the operational mechanisms, network infrastructure, and technical implementation processes that are shaping the future of NFTs.

Economic Nature and Asset Classification in the Digital Age

To understand the impact of NFTs, it is necessary to unpack the philosophical and technical distinction between fungibility and non-fungibility in the context of chain economics block.

Token Classification System: Exchangeable vs. Non-Fungible

Fungible Tokens act as a standard currency. Each unit is identical and can be completely replaced without losing its original value. In contrast, NFTs represent a unique entity with distinct identifying characteristics recorded through metadata and a unique identifier (ID) on the blockchain.

Detailed comparison of characteristics:

• Fungibility:Fungible tokens are fungible 1:1 (like 1 ETH for 1 ETH); NFTs are unique, non-substitutable.

• Value:Fungible tokens have uniform value; NFTs have variable value based on individual characteristics, rarity, and market demand.

• Divisibility:Fungible tokens are divisible (e.g., 0.0001 BTC); NFTs are typically monolithic, although fractionalization solutions are now available.

• Technical standards: The most common are ERC-20 for fungible tokens and ERC-721 or ERC-1155 for NFTs.

• Liquidity: Exchangeable tokens have high liquidity on exchanges; NFTs have lower liquidity due to their unique nature.

The Meaning of Originality and Proof of Ownership

The core value of NFTs lies in their ability to create digital scarcity. By attaching a digital signature to an asset, blockchain creates an immutable record of ownership and transaction history (provenance). This allows content creators to escape dependence on intermediary platforms, allowing them to directly interact with and receive value from a community of supporters.

Technical Architecture: Smart Contracts and Token Standards

NFT is governed by smart contracts on the blockchain, defining how tokens are created and transferred transfer.

• ERC-721: Native standard for NFTs, ensuring each token is unique and has a unique ID.

• ERC-1155: Multi-token standard, allowing a single contract to manage both one-off and bulk items, helping to optimize transaction fees in gaming.

• ERC-721A:An optimized variant that significantly reduces gas fees when minting multiple NFTs at the same time.

Decentralized Storage and Metadata Mechanism

Metadata contains detailed information about the NFT such as name, description, and properties. Due to the very high cost of on-chain storage, most NFTs use off-chain links. Using centralized servers (Web2) carries the risk of "link rot" (broken link). Therefore, the Interplanetary File System (IPFS) is preferred thanks to its content hash identification (CID) mechanism, ensuring data is unchanged and always available on the decentralized network.

Blockchain Ecosystem Analysis 2025

Choosing a blockchain platform is a strategic decision in terms of cost and accessibility:

• Ethereum: Network Leading in security and liquidity but high gas fees (average $15 - $50 for complex operations).

• Solana: Stands out with a processing speed of 65,000 transactions per second and near-zero fees ($0.00025).

• Polygon: Layer 2 solution that balances Ethereum's security with low costs, suitable for community and commercial projects.

• BNB Chain: Deep integration with Binance ecosystem, low transaction fees and fast speed.

Implementation roadmap: How to create a successful NFT

To deploy a professional NFT project, businesses can accompany Tan Phat Digital - a unit specializing in Blockchain solutions and Web3 Marketing in Ho Chi Minh City.

Step 1: Wallet and Security Infrastructure Confidential

Users need to set up a personal wallet (such as MetaMask or Phantom) and keep the recovery phrase (Seed Phrase) absolutely confidential. Experts at Tan Phat Digital always emphasize offline storage and use of cold wallets for high-value assets.

Step 2: Prepare Assets and Metadata

Creators need to prepare digital files (photos, videos, music) and upload to IPFS through services like Pinata. A standard JSON metadata file (usually OpenSea standard) is then initialized to link the asset to the blockchain.

Step 3: NFT Minting

Use exchanges like OpenSea, Magic Eden or Rarible to execute the minting order. This process will record ownership information on the blockchain. If you need a bespoke platform, Tan Phat Digital provides custom smart contract programming and website design services upon request.

Cybersecurity and Risk Management

The 2025 NFT market faces many sophisticated forms of fraud:

• Airdrop Poisoning: Hackers send fake NFTs to wallets to trick users into signing malicious transactions to drain assets.

• Currency Confusion: Using junk tokens with the same name as value tokens to make fake buy/sell orders.

• P2P Fraud: Forging proof of payment or bank receipts in live transactions.

To avoid, always follow the 5-minute check rule, do not interact with unfamiliar tokens and periodically check applications' access to your wallet.

The Future of NFTs

NFTs are shifting from speculation to actual utility through the Tokenization of Real Assets (RWA). A home or a physical piece of art can now be represented by an NFT, allowing for transparent transfer and fractional ownership. This trend opens up great opportunities for businesses to digitize traditional business models.

Understanding what NFTs are and how to create them is the first step to entering the digital economy. With technical support from reputable partners such as Tan Phat Digital, businesses not only own a high-speed, SEO-standard technology solution but also ensure the safety and sustainability of their digital assets in the Web3 era.