Rise of Blockchain-Based Non-fungible Tokens (NFTs): Overview, Trends, and Future Prospects

Abstract

Non-fungible tokens (NFTs) are blockchain-based unique, transferrable digital assets. NFTs have recently gained popularity due to their inherent ability of being traded and re-traded over the public blockchain. The financial market witnessed a huge spike in NFT trading in 2021. However, the development and research work in the area of NFTs is still in its early nascent stages. Therefore, in this work, we aim to discuss the working of NFT including its technical components, protocols, security, etc. We then discuss the key benefits as well as challenges facing the NFTs. Lastly, we provide a critical trend analysis to predict where this industry is headed and how it will bloom in upcoming years.