Dublin, September 8, 2022 (GLOBE NEWSWIRE) — “Prospects and forecasts by type, end-use, application, region, global non-fungible token market size, share and industry trend analysis report from 2022 to 2028” report added of ResearchAndMarkets.com Recruitment.
The global non-fungible token market size is expected to reach $97.6 billion by 2028, rising at a CAGR of 31.6% during the forecast period.
A non-fungible token (NFT) is a blockchain-based crypto asset that has unique metadata and identification codes that separate them from each other. Unlike cryptocurrencies, they cannot be purchased or exchanged at face value. This is in contrast to fungible tokens such as Bitcoin. They are all similar and can be used as a medium of exchange.
The unique structure of each NFT enables various applications. It’s a great approach to digital representations of real things, for example real estate or artwork. Because NFTs are blockchain-based, they can eliminate middlemen, link artists to audiences, and even be used for identity management. NFTs can eliminate middlemen, streamline transactions, and open up new markets.
NFTs, like Bitcoin, contain ownership information that facilitates identification and transfer between token holders. NFTs allow owners to add additional metadata or aspects related to their assets. For example, you can leverage fair trade tokens to represent coffee beans. The artist can also put a unique signature on her artwork digitally within the metadata.
The ERC-721 standard spawned NFT. ERC-721 defines basic interfaces such as ownership details, security, and metadata required to distribute and exchange game tokens. The ERC-1155 standard extends this concept by reducing the transaction and storage costs of non-fungible tokens and combining multiple types of non-fungible tokens into individual contracts.
For example, Decentraland, an Ethereum-based virtual reality platform, has already implemented this concept. As NFTs become more complex and embedded in financial infrastructure, it may be possible to deploy the same concept of tokenized chunks of land (varying in value and location) into the physical world.
The most widely used token standard for NFTs is Ethereum. ERC-1155 and ERC-721 token specifications are commonly used to build NFTs. Blockchains such as Flow, EOS and Tezos, in addition to Ethereum, provide token specifications for building NFTs.
Additionally, Ethereum’s impending switch from Proof of Work to Proof of Stake is projected to significantly reduce blockchain energy consumption. As a result, the use of Ethereum tokens in NFTs is projected to grow globally.
Market growth factors:
Generating economic outlook
For a very long time, the main focus of NFT experts has been on the essential properties of NFTs. In modern times, NFTs have a wide range of applications in the field of digital content. A key reason why NFTs are viable in the digital content arena amid industry diversity.
Content creators are frequently concerned that rival platforms will rob them of their income and revenue potential. For example, a digital her artist who publishes content on social media can monetize the site by selling ads to the artist’s audience. While it allows artists to gain proper visibility, it does not help artists make money in exchange for the profits of the platform.
Enabling the construction of intellectual property with authenticity
A fundamental advantage of NFTs is that they allow people to own their intellectual property. Having intellectual property on the blockchain makes it easier to monitor ownership. It’s also easy to make sure the IP owner isn’t infringing on someone else’s IP. For example, a fashion designer could design a garment and embed it into her smart contract on the blockchain.
Blockchain can store unique designs and designer ownership. Designers can sell their designs to customers. Consumers can use blockchain to authenticate designs and ensure they have not been duplicated.
The threat of digital replication
Blockchain integrity is unattackable, but NFTs can also be used to spread fraud. There are various examples, and several artists have reported selling their work as her NFTs on online marketplaces without permission. This clearly defeats the purpose of using her NFTs to simplify the commodification of paintings.
The value proposition of NFTs is to use unique tokens to verify physical works of art, ensuring that the token holder also owns the original works of art. There are serious concerns if someone develops an electronic replica of the original work, links a token to it and sells it on a virtual marketplace.
Based on type, the market is segmented into digital assets and physical assets.
In 2021, the digital assets segment captured the largest revenue share in the non-fungible token market. The growth of this segment is due to the increased use of NFTs by artists around the world to secure ownership of their digital assets. Artists can profit from their work as they retain ownership of their work through NFTs and do not need to provide their work to other platforms for promotion. At the same time, his increasing use of NFTs to sell digital properties in both the real and virtual worlds could propel the market forward.
Based on end use, the market is segmented into personal and commercial.
In 2021, the commercial segment recorded a large revenue share in the non-fungible token market. His increasing use of NFTs for business purposes such as supply chain management and logistics innovation could propel the industry forward. Companies in the logistics industry are gradually incorporating blockchain technology into their operations, opening up new opportunities for the industry to expand.
Based on application, the market is segmented into collectibles, art, games, sports, utilities, metaverse, and others.
In 2021, the collectibles segment captured the largest revenue share in the non-fungible token market. NFT coins that can be minted on NFT exchanges are known as crypto collectibles. Increased demand for crypto assets can lead to advantages such as asset independence and ease of use. For example, sports collectibles allow fans to interact directly with heroes, games collectibles allow players to trade and play, and artists his collectibles allow them to connect with potential clients and sell their creations. to
In 2021, North America accounted for the largest revenue share in the non-fungible token market. Millennials in the region are increasingly adopting NFTs, boosting the growth of the local market. At the same time, the growing number of artists producing digital art in countries such as the United States and Canada is likely to fuel the growth of the regional market. The presence of major players in blockchain business in the region is also encouraging for the regional market.
major market players
- Cloudflare Inc.
- Gemini Trust Company, LLC
- Ozone Networks Co., Ltd.
- Dapper Lab Co., Ltd.
- semidot infotech
- The Sandbox (BACASABLE Global Limited)
Scope of investigation
- digital assets
- physical assets
By end use
- North America
- Rest of North America
- rest of europe
- Asia Pacific
- Rest of Asia Pacific
- United Arab Emirates
- Saudi Arabia
- South Africa
- Remains of Ramea
Learn more about this report here https://www.researchandmarkets.com/r/i8p7di