Non-fungible Tokens and Their Applications

We are moving toward digitization, and the word used most frequently while describing it is “money.” This is backed up by “Bitcoins,” a type of virtual currency that can be traded via Blockchain, a distributed ledger technology. Bitcoins are essentially extended sequences of code that have been changed to take on monetary value. However, Non-fungible tokens (NFTs) were created in late 2017 as a brand-new class of distinct and undivided blockchain-based currency. While fungible tokens have enabled new use cases, such as initial coin offerings, it is unclear if NFTs will be applicable. NFTs advance the reinvention of this infrastructure by enabling digital representations of physical assets. Because this technology is distributed and immutable, it is difficult to modify, replicate, or fake transactions. This study attempts to assist and educate the research community about this new disruptive technology and direct them in the correct steps for blockchain technology adoption.