This chapter delves into the future of the complex and evolving world of non-fungible tokens (NFTs), focusing on their potential to drive mass adoption of blockchain technology. Beginning with some historical context, the chapter explores the rapid growth of NFTs in the digital art and collectibles space, most notably during the speculative boom in 2021–2022 and the subsequent crash. The chapter then investigates how NFTs might expand beyond these initial use cases. It describes major developments in technology, business models, and financial infrastructure that will support further evolution of NFTs. Using real-world examples, the chapter then discusses emerging categories of NFT use cases, such as tokenization of physical assets, ticketing, and digital identity. It concludes by emphasizing that the true mass adoption of NFTs will occur when the technology becomes invisible and the primary draw becomes the value of use cases, not the novelty of NFTs themselves. While one should be skeptical about specific predictions for massive NFT adoption, this chapter shows that the capabilities NFTs provide are poised to add value in a wide variety of contexts.

Fueled in part by the wealth created from digital currencies, major art dealers such as Christie’s and Sotheby’s have embraced the sale of non-fungible tokens (NFTs) attached to unique digital works of art. NFTs, how they are related to the blockchain, and the evolution of the market for digital art is the subject of this chapter. Despite recent decreases in value, it appears that digital art can be added to the growing list of uses for blockchain technology, which is now becoming a part of modern life. This chapter proceeds in five sections. First, the overview of the evolutionary progression of blockchain technology in the form of NFTs. Second, a description of the emergence of the market for digital art. Third, an explanation and historical account of digital art and related recent issues. Fourth, a coverage of the abrupt decline in the market price for many NFTs. And last, a conclusion, which focuses on how the dramatic extension of blockchain and other digital technology to the world of art represents a new and exciting platform for creative expression. This chapter offers a valuable addition to the literature by providing a readable introduction and overview of what is now known about the likely impact of blockchain technology and NFTs to art. Additionally, this important development should have a significant impact on the future of innovation and property law.