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

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arxiv 2105.07447 v3 pith:LLKKDZUK submitted 2021-05-16 cs.CR

classification cs.CR
keywords tokenmarketchallengesecosystemsevolutionnftsnon-fungibleopportunities
verification ladder T0 review T1 audit T2 compute T3 formal
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abstract

The Non-Fungible Token (NFT) market is mushrooming in recent years. The concept of NFT originally comes from a token standard of Ethereum, aiming to distinguish each token with distinguishable signs. This type of token can be bound with virtual/digital properties as their unique identifications. With NFTs, all marked properties can be freely traded with customized values according to their ages, rarity, liquidity, etc. It has greatly stimulated the prosperity of the decentralized application (DApp) market. At the time of writing (May 2021), the total money used on completed NFT sales has reached $34,530,649.86$ USD. The thousandfold return on its increasing market draws huge attention worldwide. However, the development of the NFT ecosystem is still in its early stage, and the technologies of NFTs are pre-mature. Newcomers may get lost in their frenetic evolution due to the lack of systematic summaries. In this technical report, we explore the NFT ecosystems in several aspects. We start with an overview of state-of-the-art NFT solutions, then provide their technical components, protocols, standards, and desired proprieties. Afterward, we give a security evolution, with discussions on the perspectives of their design models, opportunities, and challenges. To the best of our knowledge, this is the first systematic study on the current NFT ecosystems.

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Forward citations

Cited by 6 Pith papers

Reviewed papers in the Pith corpus that reference this work. Sorted by Pith novelty score. Full citation record

  1. Counted NFT Transfers

    cs.CR 2026-02 conditional novelty 6.0 of 10

    ERC-7634 is a minimal, backward-compatible standard that lets an NFT be transferred at most L times; the paper argues the remaining budget is priced value that deters wash trading and bounds leverage.

  2. Understanding NFTs from EIP Standards

    cs.CR 2025-08 conditional novelty 6.0 of 10

    A corpus-level study of 191 NFT-related EIPs finds a Draft/Final-bifurcated ecosystem centered on ERC-721/ERC-1155 inheritance, heavy reuse of core functions, skewed contributor participation, and security risk growin...

  3. Real-World Asset Integration in Next-Generation Communication Networks: Fundamental, Framework, and Case Study

    cs.NI 2026-02 conditional novelty 4.0 of 10

    Tokenizing spectrum licenses as blockchain RWAs with automated market-maker pricing can improve utilization under scarcity and resist bid-collusion attacks in the paper's own simulation.

  4. Are NFTs Ready to Keep Australian Artists Engaged?

    cs.CR 2025-07 conditional novelty 4.0 of 10

    An empirical review of 16,000+ ERC-721 NFT metadata records finds sparse copyright information, storage fragility, and unreliable artist identification, leading to a negative verdict on NFTs for Australian copyright p...

  5. Enhancing Data Processing Efficiency in Blockchain Enabled Metaverse over Wireless Communications

    eess.SP 2025-07 conditional novelty 4.0 of 10

    A joint user-association and resource-allocation algorithm, DAUR, maximizes processed bits per unit delay-energy in a blockchain-enabled Metaverse wireless system, and simulations report higher DPE than simple baselines.

  6. Immutable Digital Recognition via Blockchain

    cs.CR 2025-08 reject novelty 3.0 of 10

    A hybrid blockchain badge system with centralized certification and decentralized issuance is described, but remains a conceptual design with no implementation or validation.

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