Since non-fungible tokens (NFTs) help build authentic intellectual property, this is one of the key drivers expected to push the sector to a $97.6 billion valuation by 2028, according to a report by Research and Markets.
NFTs are viewed as stepping stones towards more economic prospects. This is the other key driver anticipated to render more growth in this market. Per the report:
“For a very long period, the primary focus of NFT experts has been on their essential characteristics. In the modern era, NFTs have a wide range of applications in the field of digital content.”
A compound annual growth rate (CAGR) of 31.6% will be recorded during the forecast period.
By ensuring that intellectual property is stored in a tamper-proof blockchain, Research and Markets expects NFTs to continue gaining steam. For instance, a fashion designer can have their garment embedded in a blockchain-powered smart contract.
The study also highlighted that the ERC-721 token standard played an instrumental role in the materialization of NFTs. Moreover, the ERC-1155 was pivotal in enhancing non-fungible tokens by lowering storage and transaction costs.
Research and Markets noted:
“The ERC-721 standard gave rise to NFTs. ERC-721 defines the basic interface, such as ownership details, security, and metadata, that are required for the distribution and exchange of gaming tokens.”
Key market players included Gemini Trust Company, LLC, Dapper Labs, Inc., The Sandbox, Cloudflare, Inc., Ozone Networks, Inc., and Semidot infotech.
The NFT market was segmented based on applications: gaming, art, collectables, metaverse, sport, and utilities.
On the other hand, the threat of digital replication emerged as the main stumbling block to NFT growth. The report stated:
“While a blockchain’s integrity is unassailable, NFTs can also be utilized to propagate fraud. There are various instances, in which, several artists have reported finding their work for sale as NFTs on online marketplaces without their permission.”
Meanwhile, South Korean companies adopted NFT strategies to attract the younger generation seeking special and new products while revitalizing brand loyalty, Blockchain.News reported.
This article was originally published on blockchain.news