NFTS and the New Economy: A Comprehensive Study on the Impact and Innovation of Decentralized Marketplaces

Abstract

Non-fungible tokens (NFTs) are digital assets stored digitally that define digital creative works or intellectual assets, such as the “soundtrack,” “digital artworks,” “games,” “animated gifs,” and “short video clips.” Fungible means to mention that an asset's units are all the same, interchangeable, and dividable.NFT marketplaces are online platforms that have the capability of transforming global interaction and ownership. Although there have been challenges, relentless innovation and collaboration have the potential to bring NFTs to full fruition. By engaging in regulatory, security, scalability, and valuation issues, the industry has the ability to facilitate and sustain mass NFT market use. The study concentrated on identifying several use cases for NFTs and analyzing their potential for creators in the marketplace. The purpose of this paper is to provide a foundational understanding of NFTs and their market applications. The current global market capitalization of NFTs is $60 billion, which is approaching the $100 billion global market capitalization of art.