The Non-Fungible Token (NFT) Marketplace : Technological Innovation and Opportunities for Creators

Abstract

Purpose : The study concentrated on identifying several use cases for NFTs and analyzing their potential for creators in the marketplace. The purpose of this paper was to provide a foundational understanding of NFTs and their market applications. The current global market capitalization of NFTs is $40 billion, which is approaching the $50 billion global market capitalization of art. In India, Bollywood artists and athletes have their own NFT marketplaces to sell their merchandise.

Methodology : The paper conceptually analyzed the use cases of NFTs and their market potential while emphasizing some trading-related issues. As the concept of NFTs is still in its infancy, there is a severe lack of research on NFT use cases. This paper attempted to resolve the lack of research in this field.

Findings : NFT has the potential to create new opportunities for a creative market that has been hampered by a variety of factors related to issues of authentic ownership. NFTs enable artists to sell their products directly to all consumers. No matter how frequently an asset is transferred, NFTs provide secure transactions recorded on the blockchain. Due to the instantaneous global commerce of digital products, barriers no longer exist between artists and collectors. Creators may be eligible for royalties based on a percentage of future sales of their NFT artwork, depending on the terms of the licensing agreement.

Practical Implications : NFTs have the ability to destabilize economies, cultures, and society as a whole. As with any new technology, NFTs have enabled the introduction of a new business model. Since there is no specific legal framework for NFTs in India, they are governed by contract law’s fundamental principles. Until cryptocurrencies are formally sanctioned, it is premature to estimate the impact of NFTs under the current circumstances.

Originality : In contrast to previous research on NFTs, the current work expands upon conceptualizing NFTs and analyzes their market applications and issues.