How NFT Works: How Can NFTs Make Money?

Jakarta, Pintu News – In the ever-evolving digital era, NFTs (Non-Fungible Tokens) have become one of the hot topics that attracts the attention of many-from artists, collectors, to crypto investors.

Although it is often heard, many still wonder: how exactly does NFT work, and how can digital objects such as images, videos, or even virtual properties make money?

Definition of NFT

Non-fungible tokens (NFTs) are digital assets that can be artworks, digital content, or videos that have been tokenized through blockchain technology. These tokens are created from metadata using encryption functions, resulting in a unique identification code that distinguishes one NFT from another.

Read also: What is the Difference between NFT and Crypto?

The tokens are stored in a digital ledger, while the original assets are usually kept in a separate location. This relationship between tokens and assets is what makes NFTs unique.

NFTs can be traded or exchanged for money, cryptocurrency, and even other NFTs-all depending on the value assigned by the market and the owner. For example, you can draw a smiley face on a banana, photograph it (with metadata attached), and then make it an NFT on the blockchain. Whoever has the private key of that token is the rightful owner of the rights you have assigned to that asset.

How NFT Works

NFTs are created through a process called minting, which is where an asset’s information is encrypted and recorded onto the blockchain. Broadly speaking, the minting process involves creating a new block, validating the NFT information by a validator, and closing the block. In this process, a smart contract is also usually inserted that governs the ownership and transfer mechanism of NFTs between users.

Every NFT token that is requested will get a unique identifier that is directly linked to a single blockchain address. This means that each NFT has a single owner, and this ownership information (the wallet address where the tokens are stored) is public and visible to anyone.

Even if there are 5,000 NFTs of the same object (such as a regular movie ticket), each token still has a unique identity and can be distinguished from one another.

Various types of blockchains can be used to create NFTs, although the names or terms may vary. For example, on the Bitcoin network, NFTs are known as Ordinals. Just like Ethereum (ETH)-based NFTs, Ordinals in Bitcoin can also be bought, sold, and traded.

Read also: What is Bitcoin and Crypto?

The difference is that Ethereum creates special tokens to represent assets, while Ordinals uses serial numbers (called identifiers) that are embedded directly in the smallest unit of bitcoin, the satoshi.

How Can NFTs Make Money?

The revenue from an NFT largely depends on what it represents. If the NFT represents a real asset such as a tokenized property, then the NFT can be sold according to the market value of the property.

If the value of the property has increased since it was purchased, then the seller will make a profit from the price difference.

However, if the NFT is a digital asset such as an image of a monkey wearing a hat, then its sale value depends entirely on the market price of the token itself. If the price of the NFT has increased since it was last purchased, then the seller can make a profit when reselling it.

In essence, the profit from an NFT comes from the difference between the purchase price and the sale price-just like any other investment asset, be it physical or digital.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• DACS. What is an NFT and how do these affect artists? Accessed on February 3, 2026
• Investopedia. Non-Fungible Token (NFT): What It Means and How It Works. Accessed on February 3, 2026
• Kaspersky. What are NFTs and how do they work? Accessed on February 3, 2026