Future Tendencies of Non-fungible Tokens
Abstract
Blockchain has been one of the key innovations in information technology in the last 15 years. An important aspect of applying blockchain technology is the creation of so-called non-fungible tokens (NFTs). Although the name resembles cryptocurrencies because of the word token, in practice, NFTs do not represent electronic money but a digital certificate of ownership of an asset. They effectively behave like tokens whose total supply is one, and it is immutable. Considering their technical and conceptual basis, NFTs can be defined as digital certificates of ownership based on blockchain tech- nology, the possession of which proves the indisputable ownership of the purchased digital asset. The subject of this paper is the conceptual basis of NFTs and the scope of their application in digital business. It aims to determine the value factors of NFTs and whether an expansion of their use can be expected in the future. The results of our research show that the essential advantage that NFTs bring to digital business is authentication. NFTs also enable the continuous collection of royalties by the author. The last, but potentially most powerful value generator of NFTs, is the creation of an ecosystem, where an online community is formed based on the initial forms of digital assets. Without standardization and regulation by states, NFTs will remain in the market niche of intensive Internet users
Downloads
References
Bao, H., & Rouband, D. (2022). Non-Fungible Token: A Systematic Review and Research Agenda. Journal of Risk and financial management,15(5),215. DOI: https://doi.org/10.3390/jrfm15050215
Beck, D. (2022). The EU wants to be a leader in blockchain technology. Analytics. Wine, September 14. Retrieved May 14, 2023, from https://analytics.wine/the-eu-wants-to-be-leader-in-blockchain-technology/
Chandra, Y. (2022). Non-fungible token-enabled entrepreneurship: A conceptual framework. Journal of Business Venturing Insights, 18, e00323. DOI: https://doi.org/10.1016/j.jbvi.2022.e00323
Daniels, T. (2021). Rob Gronkowski Reveals ‘Championship Series NFT Collection’ Rare Digital Cards. Bleachereport, March 9, Retrieved May 21, 2023, from https://bleacherreport.com/articles/2935201-rob-gronkowski-reveals-championship-series-nft-collection-ra-re-digital-cards
Fortnow, M., & Terry, Q. (2021). The NFT handbook: how to create, sell and buy non-fungible tokens. New York: Wiley.
Gowda, N., & Chakravorty, C. (2021). Comparative study on cryptocurrency transaction and banking transaction. Global Transitions Proceedings, 2(2), 530-534. DOI: https://doi.org/10.1016/j.gltp.2021.08.064
Howcroft, E. (2021). Virtual real estate plot sells for close to $1 mln. Reuters, June 18, Retrieved August 17, 2022, from https://www. reuters.com/technology/virtual-real-estate-plot-sells-close-1-mln-2021-06-18/
Iansiti, M. & Lakhani, K.R. (2017). The truth about blockchain. Harvard Business Review, 95(1), 118-127.
Kaczynski, S., & Kominers, S.D. (2021). How NFTs create value. Harvard business review. November 10, online version, Retrieved August 10, 2022, from https://hbr.org/2021/11/how-nfts-create-value
Klein, P. (2021). Is the Metaverse the Next Major Phase of the Internet? The Medium, December 21, Retrieved August 1, 2022, from https:// medium.com/mit-initiative-on-the-digital-economy/is-the-metaverse-the-next-major-phase-of-the-internet-dd8891193e2a
Nadini, M., Alessandretti, L., Di Giacinto, F., Martino, M., Aiello, L. M., & Baronchelli, A. (2021). Mapping the NFT revolution: Market trends, trade networks, and visual features. Scientific Reports 11, 1-11.
Nakamoto, S. (2008). Bitcoin: A peer-to-peer electronic cash system, Retrieved August 1, 2022, from https://bitcoin.org/bitcoin.pdf Paul, C. (2023). Top 10 latest NFT trends 2023 – NFTs in AI, Games and Beyond. The Medium, February 15. Retrieved May 5, 2023, from https://medium.com/javarevisited/top-10-latest-nft-trends-2023-nfts-in-ai-games-beyond-55383c87301b
Ranjithprabhu, K. & Sasirega, D. (2014). Eliminating Single Point of Failure and Data Loss in Cloud Computing. International Journal of Science and Research, 3(4), 335-337.
Scardovi, C. (2016). Restructuring and innovation in banking. London, UK: Springer
Schneider, F. (1990). Implementing Fault-Tolerant Services Using the State Machine Approach: A Tutorial. ACM Computing Surveys, 22(4), 299–319. DOI: https://doi.org/10.1145/98163.98167
Statt, N. (2013). Micropayments, mega angst, and the future of console games (N). CNet, December 19, Retrieved August 17, 2022, from https://www.cnet.com/tech/services-and-software/micropayments-mega-angst-and-the-future-of-console-games/
Thompson, A. A., Strickland, A. J., & Gamble, J. E. (2007). Crafting and Executing Strategy-Concepts and Cases, (15th Edition). New York: McGraw-Hill/Irwin.
Tomić, N. (2017). Effects of micro transactions on video games industry = Efekat mikrotransakcija na industriju video igara. Megatrend review, 14(3), 239-257.
Tucci, L. (2023). What is the metaverse? An explanation and in-depth guide. TechTarget.com, May 8, Retrieved May 15, 2023, from https://www.techtarget.com/whatis/feature/The-metaverse-explained-Everything-you-need-to-know
Vincent, J. (2022). The scary truth about AI copyright is nobody knows what will happen next. The Verge, November 15, Retrieved May 5, 2023, from https://www.theverge.com/23444685/generative-ai-copyright-infringement-legal-fair-use-training-data
Wang, Q., Li, R., Wang, Q., & S. Chen (2021). Non-Fungible Token (NFT): Overview, Evaluation, Opportunities and Challenges. Retrieved August 3, 2022, from https://arxiv.org/abs/2105.07447
Williams, L. (2022). A Pandemic Is a Dream Come True for Gamers. Bloomberg, January 16, Retrieved August 10, 2022, from https://www. bloomberg.com/opinion/articles/2022-01-16/pandemic-s-boost-for-video-game-industry-is-a-dream-come-true-kyh9nekz#x-j4y7vzkg
Wolf, M. (2022). Cryptocurrencies are not the new monetary system we need. Financial times, July 5, Retrieved August 4, 2022, from https://www.ft.com/content/f2faeec9-6d42-4d78-9c68-1f59795789a7
Copyright (c) 2023 Nenad Tomić, Violeta Todorović, Milena Jakšić
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.