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Critical Factors and Trends in NFT Technology Innovations

Author

Listed:
  • Chih-Hung Wu

    (Graduate School of Digital Content and Technology, National Taichung University of Education, Taichung 403, Taiwan)

  • Chien-Yu Liu

    (Graduate School of Digital Content and Technology, National Taichung University of Education, Taichung 403, Taiwan)

  • Ting-Sheng Weng

    (Department of Business Administration, National Chiayi University, Chiayi 600, Taiwan)

Abstract

Non-fungible token (NFT) products are important for industrial applications. In recent years, they have rapidly gained importance in the field of blockchain combined with metaverse. The concept of NFTs has developed gradually, as many industries have begun using NFTs creatively to raise new business innovation opportunities in entrepreneurship. However, few studies have been conducted analyzing critical features of NFTs for success, trends, and challenges in NFT products. In this study, group discussions, case analysis methods, and the OpenSea database were used to analyze fashion trends among NFT products. A mixed method was used in this study. Quantitative and qualitative data derived from the questionnaire and group discussions were analyzed using the case study method, and the actual historical trading data of NFT products obtained from the OpenSea platform were analyzed. This study analyzed NFT products, fashion characteristics, and trends in NFT artwork. The opportunities and challenges of NFT applications and sustainable NFTs are discussed in this study. Our research results show that the most attractive NFT product types are collectible digital works and creative artworks. The critical design characteristics are lovely (cute), beautiful, and interesting. We recommend that NFT makers use the above-mentioned characteristics to create NFT artworks with special design characteristics to increase NFT values. The advantage of NFTs is that makers can freely create their works through the NFT platform, which can decrease the limitations of traditional methods such as the need for venues, exhibition setup costs, and intermediaries’ commissions. The major challenges of current NFT applications include usability challenges, security and privacy issues, and governance considerations. We believe that our research results can provide useful directions and strategies for future researchers, makers, and ventures seeking to develop NFT applications. Our research results, such as identifying the critical design factors and current trends in NFTs, can provide guidelines for art design and innovation education. In addition, this study discusses the applications of NFTs in sustainable education, which can provide benefits for sustainable educational development to meet the goal of quality education in SDG4.

Suggested Citation

  • Chih-Hung Wu & Chien-Yu Liu & Ting-Sheng Weng, 2023. "Critical Factors and Trends in NFT Technology Innovations," Sustainability, MDPI, vol. 15(9), pages 1-25, May.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:9:p:7573-:d:1139822
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    References listed on IDEAS

    as
    1. Wang, Yunsen & Kogan, Alexander, 2018. "Designing confidentiality-preserving Blockchain-based transaction processing systems," International Journal of Accounting Information Systems, Elsevier, vol. 30(C), pages 1-18.
    2. Andrea Sestino & Gianluigi Guido & Alessandro M. Peluso, 2022. "Non-Fungible Tokens (NFTs)," Springer Books, Springer, number 978-3-031-07203-1, December.
    3. Matthieu Nadini & Laura Alessandretti & Flavio Di Giacinto & Mauro Martino & Luca Maria Aiello & Andrea Baronchelli, 2021. "Mapping the NFT revolution: market trends, trade networks and visual features," Papers 2106.00647, arXiv.org, revised Sep 2021.
    4. Dowling, Michael, 2022. "Is non-fungible token pricing driven by cryptocurrencies?," Finance Research Letters, Elsevier, vol. 44(C).
    Full references (including those not matched with items on IDEAS)

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