Non-Fungible Token (NFT): Overview, Evaluation, Opportunities and Challenges

By Qin Wang, Rujia Li, Qi Wang, Shiping Chen. arXiv.org, 2021

706 citations recorded by the source corpus.

The Non-Fungible Token (NFT) market is mushrooming in recent years. The concept of NFT originally comes from a token standard of Ethereum, aiming to distinguish each token with distinguishable signs. This type of token can be bound with virtual/digital properties as their unique identifications. With NFTs, all marked properties can be freely traded with customized values according to their ages, rarity, liquidity, etc. It has greatly stimulated the prosperity of the decentralized application (DApp) market. At the time of writing (May 2021), the total money used on completed NFT sales has reached $34,530,649.86$ USD. The thousandfold return on its increasing market draws huge attention worldwide. However, the development of the NFT ecosystem is still in its early stage, and the technologies of NFTs are pre-mature. Newcomers may get lost in their frenetic evolution due to the lack of systematic summaries. In this technical report, we explore the NFT ecosystems in several aspects. We start with an overview of state-of-the-art NFT solutions, then provide their technical components, protocols, standards, and desired proprieties. Afterward, we give a security evolution, with discussions on the perspectives of their design models, opportunities, and challenges. To the best of our knowledge, this is the first systematic study on the current NFT ecosystems.

Subfields: Computer Vision and Pattern Recognition, Information Systems

View Paper: https://www.semanticscholar.org/paper/ad5c04b15e20dccfd3907f9cc354962cb77848a7

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Citations in the corpus

A Survey on Metaverse: Fundamentals, Security, and Privacy (2022, background): “Empowered by blockchain technology, the indivisible, tamper-proof, and irreplaceable NFT offers a promising solution for asset identification and ownership provenance in the metaverse [38].”
Mapping the NFT revolution: market trends, trade networks, and visual features (2021, background): “[12] Qin Wang, Rujia Li, Qi Wang, and Shiping Chen.”
A Full Dive Into Realizing the Edge-Enabled Metaverse: Visions, Enabling Technologies, and Challenges (2022, background): “Normally, UGC creators record the metadata of NFTs by on-blockchain or off-chain mechanisms [259], [260].”
Understanding and Creating Art with AI: Review and Outlook (2021, background): “NFT is a type of cryptocurrency that differs from other cryptocurrencies by being unique and not exchangeable like-for-like [131].”