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What are NFT Tokens and Why Are They Needed in 2025?

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In 2025, the crypto market reached a mature stage. Smart contracts have become part of everyday architecture, metaverses have gained influence, and digital assets have become the standard in business. In this context, the question of what NFT tokens are has become particularly relevant: not as a passing trend, but as the basis for the digitalization of rights, identity, and ownership in the Web3 economy.

What are NFT tokens?

NFT (non-fungible tokens) means “non-fungible tokens”. Each of them represents a separate digital object recorded on the blockchain. Unlike fungible tokens (e.g. USDT, ETH), which can be exchanged one-to-one, each NFT has an individual identifier and metadata that cannot be forged or cloned.

What are NFT tokens in technical terms? They are records in a smart contract with built-in information: authorship, creation date, file URI, license, and transaction history. This structure makes possession a proof of authenticity, unrepeatability and ownership, which cannot be lost or replaced by a simple copy.

The Market in 2025: Reinvented

What are NFT tokens?By 2025, the NFT market will have abandoned inflationary collectibles and focused on utility objects. The focus has shifted from art and advertising to practical solutions. Asset owners will gain access to services, features, leasing, DAO voting, rating verification, and even digital identity. What are NFT tokens today: a club pass, an event ticket, a letter of credit, a subscription, a certificate, API access, or a share on a decentralized platform? Instruments have become legally meaningful objects with respect to corporate law.

Practical application: what are NFT tokens?

NFTs are used in logistics, real estate, education, insurance, music, film, and sports. Thanks to tokenization, the design, distribution, and control of assets have become dozens of times easier. By 2025, the asset will be used as:

a key to launching applications and subscriptions (access via token);

  • a voting tool in DAOs and decentralized games;
  • KYC identification element without revealing personal data;
  • registration of intellectual property rights;
  • digital receipt of a financial loan;
  • access to a rented physical or digital asset;
  • certificate of completion of a course or exam;
  • Internal currency of the metaverse with a specific purpose.

Smart contracts and the ERC standard

NFTs are created according to the ERC-721 standard (or derivatives ERC-1155, ERC-3525, etc.). The standards define which functions a token must support: verification of the owner, translation, URI binding and creation and destruction events.

At the smart contract level, the functionality is fully automated. The owner has the ability to freely dispose of the token, independently of a third-party intermediary. It can be transferred, sold, burned, delegated or used as collateral in DeFi protocols. What are NFT tokens in the eyes of a developer? An object with a clear ABI interface and integration into the blockchain infrastructure. No bank, registrar or notary approval is required for its implementation. The code automates everything.

Law and identity: the new role of NFTs in the digital society

The legal recognition of NFTs is a logical step in the digital transformation. In 2025, the token began to fulfill the function of digital identity. Instead of usernames and passwords, users provide a token that is linked to a wallet and confirmed by a series of smart contracts. NFTs have become not only an asset, but also an ‘identity key’: a digital signature, a business card and an ID in one.

In education, objects such as diplomas are used. The admissions committee, employer or client receives an NFT certificate with immutable metadata: course name, study hours, completion date and name of the teacher. This excludes forgery and makes it easier to verify data.

What are NFT tokens in metaverses: building blocks?

The gaming industry continues to use NFTs as modular components in virtual worlds. Virtual lands, buildings, skins, artifacts, and contracts are created as assets, allowing the user to own and control the content created in the game outside of the platform. Players sell character skins, rent out arenas, collect equipment in the form of tokens, and use them in projects ranging from role-playing games to e-sports. In metaverses, NFTs fulfill multiple functions: land rights, event tickets, access to private clubs, personalized avatars, and branded visuals.

Financial ecosystem: DeFi and NFT in one package

Decentralized finance (DeFi) goes beyond using NFTs as art. Tokens have become collateral in lending protocols, a guarantee for launching new projects, and a digital asset that can be fractionalized, traded, and used to generate liquidity. A project with real estate-backed NFTs gives investors access to rental income. On DeFi platforms, you can earn interest with tokens, participate in staking or receive an airdrop that you can store in your wallet.

Markets and infrastructure: a system of mature solutions

To work with NFTs in 2025, a whole range of tools are used: wallets (MetaMask, Rabby, Phantom), marketplaces (OpenSea, Rarible, LooksRare), collection generators, API integrations, minting tools and airdrops.

Smart contracts are created in visual designers without code. Object owners subscribe to automatic actions: notifications, updates, rollups, DAO participation. What are NFT tokens in this context? An interface between the user and the platform, secured by the blockchain. Thanks to the infrastructure, any brand could launch them without the intervention of a programmer. This is the democratized Web3. Token creation, metadata management, and connection to registries have been simplified, and cross-chain support has been introduced.

Copyright: Protection of content in digital media

Creators use NFTs as a legally meaningful mechanism to protect rights. An artist, musician, or writer obtains authorship of a digital work through a smart contract. The token records the date of creation, the hash file, the creator’s name, and metadata. These are all stored on the blockchain and cannot be edited. This makes counterfeiting impossible and disputes easy to resolve. What are NFT tokens for content creators in 2025? The act of registration. The creator is given a tool that replaces the notary, lawyer, and copyright registry. Marketplaces support royalty payments. When assets are resold, a percentage of the proceeds is automatically transferred to the author. This mechanism provides passive income and makes creativity not only free, but also permanently monetizable.

Business Challenges: B2B Value

Companies are implementing NFTs for access control, employee certification, transaction verification and customer loyalty. Each employee card or specialist badge is issued as a token. Access to sensitive information, areas, files or equipment depends on the presence of assets in the wallet.

Retail chains use them as bonus cards. The customer receives a token with a purchase history, unique offers and the ability to upgrade. In the document flow of companies, these tools replace physical signatures and in logistics they record traces of goods movements. What are NFT tokens for companies? A tool to reduce costs, increase transparency and automate internal processes.

Conclusion

Practical application: what are NFT tokens?NFTs are no longer a hype. In 2025, they will be a technologically mature, legally formalized and economically applicable instrument. Each token is an encoded carrier of a unique digital or physical right. They are used in education, the gaming industry, finance, law, business and identity management. What are NFT tokens today? A bridge between the digital and the real world. They register authorship, provide access, manage rights, facilitate interaction and generate trust. The era of superficial views on tools is over.

Related posts

Blockchain technology now extends far beyond cryptocurrencies. This innovative method of data storage offers transparency, security and decentralisation, making it attractive for a wide range of industries. Investing in blockchain is a strategic move today for anyone who wants to preserve and grow capital. Companies such as IBM, Microsoft and Amazon are already investing billions of dollars in the development of these technologies, which they see as the future of the digital economy.

The importance of blockchain is growing against the backdrop of the global economic crisis. In times of crisis and inflation, technologies that guarantee the security and reliability of data storage are crucial for businesses. In this article, we discuss promising blockchain projects, startups, ETFS and security tokens.

How to invest in blockchain: basic methods and strategies

Investing in blockchain offers you countless opportunities to grow your capital. There are different investment methods, each of which suits a different level of knowledge and risk appetite. Beginners should be careful when buying popular cryptocurrencies such as Bitcoin or Ethereum. Experienced investors may consider startups and participate in ICOS, IEOS, and STOS.

Available methods:

  1. Buy cryptocurrency. One of the easiest and most popular methods. Binance, Coinbase, and Kraken offer access to dozens of cryptocurrencies. It is important to consider the fees for buying, storing, and withdrawing funds. Storing your assets in secure wallets such as Ledger or Trezor protects your investments from hacks and scams.
  2. Invest in ETFS. With the Grayscale Bitcoin Trust and Bitwise 10 Crypto Index Fund, exchange-traded funds, you can access multiple blockchain assets at once. This reduces risk through diversification and is suitable for long-term investments.
  3. Participate in ICO, IEO, and STO. Initial coin offerings allow investors to buy coins from new blockchain projects at an early stage. Successful ICOS can generate multiple returns, but they require careful analysis.
  4. Venture capital investments in blockchain startups. Investing in young companies offers the opportunity to achieve high returns if the project is successful. Platforms such as AngelList and Crunchbase help to find startups with great potential. Successful examples are Chainlink, Polkadot and Filecoin.

Each investment method has its characteristics and risks. The right choice of strategy depends on the investor’s goals, experience and the current market situation.

Investments in blockchain startups and promising projects

How to invest in blockchain: basic methods and strategiesStartups operating in sectors such as financial technology, logistics, healthcare, and decentralized finance (DeFi) are attracting the attention of venture capitalists and private investors. How to choose a promising blockchain startup? Pay attention to:

  1. Team experience. Successful startups are led by developers and managers with extensive experience in blockchain and IT.
  2. Technological foundation. Using proven blockchain protocols such as Ethereum, Solana, and Polkadot.
  3. Idea and singularity. A solution to a real-world problem or an innovative improvement on an existing technology.
  4. Market size. Potential audience and product demand.

Examples of successful startups:

  1. Chainlink, which enables data transfer between the blockchain and external sources.
  2. Filecoin is a decentralized storage network.
  3. Polkadot: a platform for building interoperable blockchain networks.

Early-stage investments carry risks, but successful projects can deliver multiple returns on investment.

Investing in Cryptocurrencies: How to Choose the Right Assets

Cryptocurrencies are still one of the most popular ways to invest in blockchain. But how do you choose a reliable asset from the thousands of options available? There are a number of important factors to consider if you want to invest successfully.

Main types of cryptocurrencies:

  1. Bitcoin (BTC). The first and most famous cryptocurrency with a market cap of over $500 billion. Bitcoin remains ‘digital gold’ and the basis for storing wealth.
  2. Ethereum (ETH). The leading platform for creating smart contracts and decentralized applications.
  3. Stablecoins. Currencies pegged to the US dollar: USDT, USDC. It is used to hedge against volatility and perform calculations.
  4. Alternative currencies. Promising cryptocurrencies with new technologies: Solana, Polkadot, Cardano.

Blockchain ETFs allow you to diversify your portfolio without having to buy virtual currencies directly. This will limit the risk and ensure the stability of your investment. To make a decision, it is important to perform technical and fundamental analysis, follow the news and study the opinions of experts.

Blockchain investment trends in 2024

In 2024, blockchain investments will focus on new technologies and innovative solutions. Key areas:

  1. NFT and digital artwork. Platforms such as MidJourney create unique digital assets. Investing in NFTs will allow you to earn money from unique artwork and collectibles.
  2. Tokenization of assets. Blockchain technology makes it possible to tokenize real estate, stocks and other valuable assets. This ensures transparency and liquidity of investments.
  3. Metaverses and Web 3.0. Projects such as Decentraland and The Sandbox create virtual worlds where users can work, learn and play.
  4. Artificial intelligence. AI technologies improve security and process automation on platforms.

In 2025, the aforementioned trends will gain even more momentum.

Risks and pitfalls of blockchain investments

Every investment involves risks. Market volatility, fraud and technical errors can lead to losses. To minimize risks, it is necessary to conduct a thorough analysis of projects and use reliable platforms to store assets.

Typical mistakes of investors:

  1. Insufficient analysis. Investing without studying the project leads to losses.
  2. Emotional decisions. Panic when the market falls and greed when the market rises hinder a rational approach.
  3. Use of untrusted platforms. Storing assets on unreliable exchanges can lead to asset losses.

Conclusion

Investing in Cryptocurrencies: How to Choose the Right AssetsBlockchain investments offer significant opportunities for capital growth. By buying cryptocurrencies, investing in startups, ETFs and tokenizing assets, you can diversify your portfolio and minimize risks. An expert approach and careful analysis guarantee successful investments and financial stability.

Originally associated exclusively with cryptocurrencies, blockchain has evolved into a tool that can transform the way businesses, governments, and social systems work. Classifying systems is important to understanding their functionality and selecting the right scheme for specific tasks. Classifying blockchain technology into types helps identify the best models for different applications: finance, healthcare, logistics, and energy.

Type 1: Public blockchain: transparency and decentralisation in action

A public blockchain is an open, decentralised network where any participant can be part of the ecosystem, verify transactions and use internal resources. This approach offers high transparency, reliability and independence from centralised authorities.

Public networks are based on the principles of openness and equality. Anyone can connect, without having to go through complicated registration procedures or provide personal information.

Characteristics of public networks:

  1. Decentralisation. Management is performed by multiple nodes in the network, to the exclusion of a single control.
  2. Cryptographic protection. Each transaction is encrypted and recorded in an immutable log.
  3. Transparency. All transactions can be viewed by any participant.

Examples

Some of the best-known representatives are Bitcoin and Ethereum. These networks set the standard for the entire industry:

  1. Bitcoin, launched in 2009, was the first example of the use of a public blockchain. It provides secure storage and transfer of digital assets and protects data using the Proof-of-Work (POW) algorithm. It has a maximum processing speed of up to 7 transactions per second.
  2. Ethereum focuses on creating decentralised applications and supporting smart contracts. The network is widely used in DeFi (decentralised finance) and NFT (non-fungible tokens) projects.

Challenges and limitations

Despite its advantages, the public type of blockchain has some limitations:

  1. Scalability. Limited network bandwidth, especially at times of high demand.
  2. Energy consumption. Using the POW algorithm consumes a lot of resources. The bitcoin network consumes about 130 terawatt hours of energy per year, equivalent to the energy consumption of a small country.
  3. High cost. During periods of blockchain congestion, users face higher transaction costs. In 2021, Ethereum’s cost was $40 per transaction.

The format is actively used in cryptocurrencies, decentralised autonomous organisations (DAOS) and digital finance, demonstrating resilience and efficiency.

Type 2: private blockchain – a tool for internal transactions

Type 1: Public blockchain: transparency and decentralisation in actionA private blockchain, unlike a public blockchain, is a closed network with limited access, where participants are subject to strict verification. These systems are managed by one or more organisations, ensuring control and security of transactions.

Private blockchains are designed to solve business problems and are characterised by high speed, low cost and flexibility. Access to the technology is limited and management is concentrated in the hands of specific users or organisations.

Features:

  1. Access control. Only authorised subscribers can perform transactions or view data.
  2. High performance. Average transaction speed of up to 1,000 transactions per second.
  3. Configuration flexibility. Ability to adapt network rules to business needs.
  4. Power saving. Private networks use algorithms that consume fewer resources, such as Proof-of-Authority (POA) or Practical Byzantine Fault Tolerance (PBFT).

Application examples

The best-known platforms are:

  1. Hyperledger. Hyperledger was developed by the Linux Foundation and is used in logistics, finance and healthcare. Its purpose is to track deliveries in real time. Hyperledger Fabric processes up to 20,000 transactions per second.
  2. Corda. Platform aimed at the financial sector. Corda helps automate interbank settlements, reducing costs and speeding up transactions.

Comparison

Private types of blockchain compare favourably with public ones in a business environment, but also have limitations.

Advantages:

  • High data processing speed;
  • closed structure reduces risk of hacker attacks;
  • lower security costs.

Disadvantages:

  • Centralised management;
  • limited decentralisation reduces user trust;
  • vulnerability to insider threats.

Type 3: Hybrid blockchain – balance between privacy and openness

Hybrid blockchains are a unique combination of public and private technologies. This structure allows organisations to customise data access, offer open services to customers and protect internal processes. Systems can choose which information is public and which remains private.

Features:

  1. Customisable access. Ability to customise the degree of openness of data.
  2. Interoperability with public networks. Benefits of both technologies can be exploited.
  3. Flexibility of application. The system is simultaneously suitable for private and public purposes.

Application examples:

  1. Dragonchain. The system developed by Disney supports intellectual property protection and contract management. Dragonchain enables the integration of open and closed platforms and ensures high performance and security.
  2. XinFin. A hybrid blockchain to optimise international trade. XinFin is used in logistics and finance and provides transparency and cost reduction.

Type 4: consortium blockchain – joint data management

A consortium blockchain is a network managed by a group of organisations, making it a partially decentralised technology. These networks establish trust between participants by sharing control and responsibility.

This type of blockchain focuses on sharing data between a limited number of users. Management of the network and validation of transactions are shared between different companies to reduce the risk of misuse.

Characteristics:

  1. Partial decentralisation. The network is managed by a group of participants, ensuring equal rights and greater trust.
  2. Transparency. All activities on the platform can only be inspected by specific nodes.
  3. High performance. The speed of transactions is higher than public blockchains: it reaches several thousand transactions per second.
  4. Flexibility. Adjustment of network parameters to adapt it to the specific objectives of the consortium.

Examples of use cases:

  1. Quorum, developed on Ethereum, is used in supply chain management and financial transactions. This platform supports data privacy and is therefore sought after in the banking sector.
  2. B3i (Blockchain Insurance Industry Initiative) is a project in the insurance sector. A consortium of large insurers is using the platform to simplify settlements between market participants and increase process transparency.

Conclusion

Type 3: Hybrid blockchain - balance between privacy and opennessThe classification of the technologies helps determine which approach best suits the needs of a particular task. Each of the four systems has unique features and application scenarios. Choosing the type of blockchain depends on the objective. For example, a public network is suitable for digital finance, while a consortium network is suitable for supply chain management. By understanding the differences, users can optimise the use of the technology to solve business problems.