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Non-Fungible Token (NFT): Overview, Evaluation, Opportunities

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Non-Fungible Token (NFT): Overview, Evaluation, Opportunities ( non-fungible-token-nft-overview-evaluation-opportunities )

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Based on the observations from [116], cross-chain communications can only be implemented with the help of external trusted parties. The decentral- ization property, in this way, has been inevitably lost to some extent. But fortunately, most of the NFT-related projects adopt Ethereum as their un- derlying platform. This indicates that they share a similar data structure and can exchange under the same rules. - Updatable NFTs. Transitional blockchain updates their protocols through the soft forks (minor modifications that are compatible forwards) and hard forks (significant modifications that may conflict with previous protocols). A formal discussion has been provided in [75] stating the difficulties and trade-offs when applying the updates to an existing blockchain. Despite the generic model, the new blockchain still has strict requirements such as tol- erating specific adversarial behaviour and staying online during the update process. NFT schemes closely rely on their underlying platforms and keep consistent with them. Although the data are often stored in separate com- ponents (such as the IPFS file system), the most important logic and tokeId are still recorded on-chain. Properly updating the system with improvements will be a necessity. 7 Conclusion Non-Fungible Token (NFT) is an emerging technology prevailing in the blockchain market. In this report, we explore the state-of-the-art NFT solutions which may re-shape the market of digital/virtual assets going forward. We firstly analyze the technical components and provide the design models and properties. Then, we evaluate the security of current NFTs systems and further discuss the op- portunities and potential applications that adopt the NFT concept. Finally, we outline existing research challenges that require to be solved before achieving mass-market penetration. We hope this report delivers timely analysis and sum- mary of existing proposed solutions and projects, making it easier for newcomers to keep up with the current progress. References 1. Decentraland (mana). Project accessible: https://decentraland.org/ (2020) 2. Flow. Project accessible: https://www.onflow.org/ (2020) 3. Sandbox. Project accessible: https://www.sandbox.game/en/ (2020) 4. 3d punks. Project Accessible: http://www.3dpunks.com/ (2021) 5. Aavegotchi. Project Accessible: https://aavegotchi.com/ (2021) 6. Alien worlds. Project Accessible: https://alienworlds.io/ (2021) 7. Art blocks. Project Accessible: https://artblocks.io/ (2021) 8. Async art. Project Accessible: https://async.art/ (2021) 9. Axie infinity. Project Accessible: https://axieinfinity.com/ (2021) 10. Beeple. Project Accessible: https://www.beeple-crap.com/ (2021) 11. Bored ape yacht club. Project Accessible: https://boredapeyachtclub.com/#/ (2021) 15

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