NFT is a digital certificate of ownership for assets held. It is a non-replicable token and has a unique value for each token. Even if tokens are issued on the same network, individual tokens have different values. NFT stores digital content metadata about asset history inside tokens and has technical characteristics of blockchain as it is generated based on blockchain network.

Third parties cannot duplicate and forge tokens, store and check transaction details in blocks on the network, and issue and prove ownership of the tokens. NFT stores ownership of digital intangible assets as well as tangible and intangible real assets such as real estate and securities in the blockchain. Accordingly, ownership transactions are easy and transaction details can be transparently supervised, which can be a new means of ownership transactions.

The global NFT market showed explosive growth from $9.4 million in 2020 to $24.8 billion in 2021, and is expected to grow to $35 billion in 2022 and about $80 billion in 2025. The NFT type consists of collections, artworks, games, and metaverse, and the game NFT has the highest transaction volume at about 55%.

As for the transaction price, collections and art NFTs have a share of about 84%. However, in 2022, Christie’s auction house’s NFT bid price was only 3% of last year, raising concerns over the recent slump in the NFT market.

Experts point to security issues and U.S. interest rate hikes as reasons. The amount of NFT investment seems to have shifted as the tendency to invest in stable assets increases due to interest rate hikes. In addition, BAYC (Bored Ape Yacht Club), which has the highest value among NFTs, was hacked into Instagram, distributing false information to users, and stealing tokens. Problems such as hacking of Metacongs and lax management were also revealed in Korea.

Nevertheless, large companies are predicting the NFT market positively. Not only global big tech such as YouTube and Meta Twitter, but also domestic ICT and big tech companies such as Naver, Kakao, and Wemade are competitively entering the NFT market. In addition, major domestic conglomerates such as Samsung Electronics, Hyundai Motor and SK are also moving to enter the NFT market.

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