As non-fungible tokens (NFTs) help build authentic intellectual property, this is one of the key drivers expected to drive the sector to a valuation of $97.6 billion by 2028, according to a report from Research and Markets.

NFTs are seen as stepping stones to cheaper prospects. This is the other key driver anticipated to drive further growth in this market. According to the report:

“For a very long period, the main focus of NFT experts has been on its essential features. In the modern era, NFTs have a wide range of applications in the field of digital content.

A compound annual growth rate (CAGR) of 31.6% will be recorded during the forecast period.

By ensuring that intellectual property is stored on a tamper-proof blockchain, Research and Markets expects NFTs to continue to gain traction. For example, a fashion designer can embed her garment in a blockchain-powered smart contract.

The study also highlighted that the ERC-721 token standard played a critical role in bringing NFTs to fruition. Additionally, ERC-1155 was instrumental in improving non-fungible tokens by reducing storage and transaction costs.

Research and Markets noted:

“The ERC-721 standard gave rise to NFTs. ERC-721 defines the basic interface, such as ownership details, security, and metadata, that is required for the distribution and exchange of gaming tokens.”

Key market players included Gemini Trust Company, LLC, Dapper Labs, Inc., The Sandbox, Cloudflare, Inc., Ozone Networks, Inc., and Semidot infotech.

The NFT market was segmented on the basis of applications: gaming, art, collectibles, metaverse, sports, and utilities.

On the other hand, the threat of digital replication emerged as the main obstacle to the growth of NFTs. The report said:

“While the integrity of a blockchain is unquestionable, NFTs can also be used to spread fraud. There are several instances where various artists have reported finding their work for sale as NFTs on online marketplaces without their permission.”

Meanwhile, South Korean companies have adopted NFT strategies to appeal to the younger generation looking for new and special products while reinvigorating brand loyalty, Blockchain.News reported.

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