A Survey on Risk and Return of Non-Fungible T...

A Survey on Risk and Return of Non-Fungible Tokens (NFT)

Author Name : Siddhesh Chavan, Karthik Iyer, Dr. Shivkumar Goel

ABSTRACT

Before the extensive application of blockchain-built technologies, the mechanisms in place for verifying the proprietorship of digital assets and thus, approach of making them safe and to keep them remain susceptible to altering translated into huge losses. Years of research and developments in a blockchain led to the advancement of NFTs, which are tokens that signify the digital assets and have proof of proprietorship embedded. The unique traits of each token being exceptional and distinct from another have supported the safekeeping of assets and strengthened unique ownership. This leading-edge innovation continues to develop and catch the consideration of the majority as additional utilization of NFTs is perceived with time. This research’s main goal is to present a complete synopsis of NFT and its risks and returns. Our study is driven by the recent upwelling in the NFT industry and with the part of a creator, an investor, and a trader. Additionally, many platforms for trading NFTs are existing along with the uses of NFT through various areas counting in the education industry, fashion industry, sports industry, and digital art industry.  Furthermore, the paper highlights the key experiments in versions of NFT technology from the standpoint of security, privacy, environmental impact, ownership, governance, and property rights. In the concluding part of the paper, we have found out that the NFT structure integrated within the existing blockchain increases the market estimations of these networks.

Keywords: Blockchain, Minting, Non-Fungible Token, Smart Contract,Token Standards