Dublin – (BUSINESS WIRE) – IN “Global Non-Exchangeable Token market size, share and industry trends analysis report by type, by end use, by application, by regional forecast and outlook, 2022 – 2028” Report added to ResearchAndMarkets.com Show.
The global non-fungible cryptocurrency market size is expected to reach $97.6 billion by 2028, with a market growth of 31.6% as a compound annual growth rate (CAGR) during the forecast period.
Non-fungible tokens (NFTs) are blockchain-based crypto assets that have unique metadata and identification tokens that separate them from one another. It cannot be bought or exchanged for face value, unlike cryptocurrencies. This is in contrast to exchangeable tokens, such as bitcoins, which are all the same and can therefore be used as a medium of exchange.
The unique construction of each NFT allows for a variety of applications. It’s a great way to digitally represent actual things, like real estate and artwork, for example. NFTs can also be used to eliminate middlemen as well as connect artists to audiences or to manage identity as they are based on the blockchain. NFTs can eliminate middlemen, simplify transactions, and open up new markets.
NFTs, like Bitcoin, include proprietary information to facilitate identification as well as transfer between token holders. In NFTs, owners can add metadata or aspects related to the asset. For example, fair trade tokens can be used to represent coffee beans. Artists can also sign their digital artwork in the metadata with their own signature.
The ERC-721 standard gave rise to NFTs. ERC-721 defines the basic interface, such as ownership, security, and metadata details required to distribute and exchange gaming tokens. The ERC-1155 standard expands on this idea by reducing transaction and storage costs for non-fungible tokens and by combining multiple types of non-fungible tokens into a single contract.
For example, Decentraland, an Ethereum-based virtual reality platform, has already implemented this idea. It may become possible to deploy the same concept of tokenized plots of land (varying according to value and location) in the physical world as NFTs become more complex and integrated into the financial infrastructure.
The most widely used token for NFTs is Ethereum. To generate NFTs, the ERC-1155 and ERC-721 token specification is commonly used. Blockchains such as Flow, EOS, and Tezos, as well as Ethereum, provide token specifications for creating NFTs.
Additionally, Ethereum’s imminent shift from Proof of Work to Proof of Stake is expected to significantly reduce blockchain power consumption. As a result, the use of Ethereum tokens for NFTs is expected to increase globally.
Market Growth Factors:
Generating Economic Prospects
For too long, the primary focus of NFT experts has been on their essential properties. In the modern era, NFTs have a wide range of applications in the field of digital content. The main reason for the viability of NFTs in the field of digital content is the diversity of the industry.
Content creators often worry about competing platforms that reduce their income and reduce their potential earnings. For example, a digital artist who posts content on social media can monetize the site by selling ads to the artist’s audience. While the artist receives proper insight, it does not assist the artist in earning any money for the platform benefits.
Allows the construction of intellectual property authentically
The primary advantage of NFTs is that they allow people to own intellectual property. When intellectual property is included in the blockchain, ownership is easy to monitor. It is also easy to ensure that the owner of the IP does not violate the IP of others. For example, a fashion designer can design a garment and then embed it into a blockchain smart contract.
The blockchain can then store the unique design as well as the designer’s ownership of it. The designer then has the option to sell the design to the client. The consumer will be able to use the blockchain to authenticate the design and ensure that it has not been duplicated.
Marketing Restriction Factor:
Threat of generating digital replicas
While the integrity of the blockchain is irreplaceable, NFTs can also be used to spread fraud. There are various cases, in which many artists have reported finding their work for sale as NFTs in online marketplaces without their permission. This obviously goes against the purpose of using NFTs to simplify the marketing of panels.
NFT’s value proposition is that it uses a unique token to verify a physical artwork, ensuring that the token owner also owns the original artwork. If someone develops an electronic copy of the original work, associates code with it, and sells it in a virtual marketplace, there is serious concern.
Based on the type, the market is divided into digital assets and physical assets.
In 2021, the digital asset segment captured the largest revenue share in the non-fungible token market. The growing growth of the sector is attributed to the increasing use of NFTs by artists around the world to secure ownership of their digital assets. Artists can benefit from their work by maintaining ownership through NFTs and not having to provide it to other platforms for promotion. At the same time, the increasing use of NFTs to sell digital real estate in both the physical and virtual worlds is likely to drive the market forward.
Quit using Outlook
Based on the end use, the market is divided into personal and commercial.
In 2021, the commercial segment recorded a significant revenue share in the non-fungible token market. The increased use of NFTs for business objectives, such as supply chain management and logistics innovation, is likely to drive the industry forward. Companies involved in the logistics industry are gradually incorporating blockchain technology into their operations, opening up new opportunities for the industry to expand.
Based on the application, the market is segmented into Collectibles, Arts & Games, Sports & Utilities, and Metaverse, among others.
In 2021, the holdings 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 holdings. The increasing demand for crypto assets can be linked to benefits such as asset independence and ease of use. Sports collectibles, for example, allow fans to interact directly with their heroes, game collectibles allow players to exchange and play, and artist collectibles allow them to connect with potential customers and sell their work.
In 2021, North America captured the largest revenue share in the non-fungible token market. Millennials in the region are increasingly adopting NFT technologies, fueling the growth of the regional market. At the same time, the increase in the number of artists producing digital artwork in countries such as the United States and Canada is likely to boost the growth of the regional market. The presence of major players in the blockchain business in the region is also encouraging for the regional market.
The main market players
- Cloudflare, Inc.
- Gemini Trust Co., LLC
- Ozone Network, Inc.
- Dapper Labs, Inc.
- Semidot Infotech
- Sandbox (BACASABLE Global Limited)
field of study
- digital assets
- physical assets
According to the end use
According to the application
- the games
- North Amarica
- Rest of North America
- United kingdom
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- The United Arab Emirates
- Kingdom Saudi Arabia
- South Africa
- rest of LAMEA
Laura Wood, Senior Director of Press
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