<h3><strong>Introduction:</strong></h3>
<p>A new craze came onto the blockchain scene in 2021. Suddenly, celebrities, companies, and organizations began creating and promoting &ldquo;Non-Fungible Tokens&rdquo; (NFTS). From Snoop Dogg to Paris Hilton, Nike to Visa, entities at all levels were rushing head-first into the NFT space. Entire sectors of the economy, such as the sports industry, the gaming industry, and (in India) Bollywood were convinced by the value and promise of this digital asset. But what are NFTs, exactly? Are they art, or are they merely 0&rsquo;s and 1&rsquo;s? Perhaps they can be both. Regardless, countless entities are seeing opportunity and profit in NFT technology. It is not all about money however: NFTs may just change how we think about ownership and intellectual property. In this lesson, we introduce NFTs, what they represent, and how they are different from everything that came before them, both in the physical world as well as the digital one.</p>
<p>To answer the question &ldquo;What are NFTs?&rdquo;, we should begin by investigating the acronym itself and pinning down the concepts of fungibility and tokens. Let&rsquo;s start with tokens first.</p>
<p>&nbsp;</p>
<h3><strong>What are tokens?</strong></h3>
<p>Generally, a token is something that serves as a representation of value. For example, chips in the casino are tokens, since they are placeholders of real money. Vouchers and gift cards can also be considered tokens. Even event tickets have token qualities, since a ticket is essentially a placeholder of your right to enter a certain event. Tokens can also exist on the blockchain. Behind a blockchain token is a computer code defining the characteristics of that token. These include the name of the token, its symbol, the total supply (number of tokens), etc. Cryptocurrencies like USDT (Tether) and BUSD are examples of blockchain tokens. Just like these cryptocurrencies, NFTs also live on the blockchain. However, NFTs differ from other tokens by one crucial feature known as &ldquo;fungibility&rdquo;.&nbsp;</p>
<p><img src="https://drive.tiny.cloud/1/hx6tw7woysd2p1n6n33jlalb4z1sj26rh50t3t5ncdlttwya/2f783e33-474e-4ba5-903f-ad53d2a52bd7" alt="" width="1920" height="1080" /></p>
<p>&nbsp;</p>
<h3><strong>What is fungibility?</strong></h3>
<p>Fungibility is an attribute which describes how something can be exchanged on a one-to-one basis with another unit. For example, a kilogram of bulgur is fungible. We can change it with any other kilogram of bulgur (assuming the quality of bulgur is similar). Even in terms of monetary value, the cost of a kilogram of bulgur is uniform, so one kilogram costs the same as another kilogram. Money is also fungible. A one thousand Syrian Lira banknote has the same value as another one thousand lira banknote. Of course, the banknotes are not exactly the same (they vary in the serial number and possibly production year), yet they are still fungible since they are valued equally. Generally, fungible products do not need to be the same. They can have distinctions and unique features, as long as those differences do not affect the value of the product and the products are still interchangeable. In the cryptocurrency space, tokens like USDT and BUSD are fungible. Any Tether can be swapped for another Tether, since they share the same price.</p>
<p><img src="https://drive.tiny.cloud/1/hx6tw7woysd2p1n6n33jlalb4z1sj26rh50t3t5ncdlttwya/0edc03a0-7a19-4802-bdde-380f385cfbdb" alt="" width="1920" height="1080" /></p>
<p><em>Non</em>-fungible goods have distinct features that affect their value; they cannot be exchanged on a one-to-one basis. A real-life example of non-fungible products are paintings. There are many features that vary from one painting to another and affect the value. It can be the author, the popularity of the painting, it's complexity or any other attribute that would be considered important in evaluating the painting. For instance, the famous Mona Lisa painting would generally be much more valuable than a newly made painting of an amateur artist. Other examples of non-fungible goods are antique goods and collectibles. The unique attributes of these items help form their specific value and set them apart from other versions of the same product. Such products also exist on the blockchain as NFTs. NFTs are tokens that have unique details altering their value, and are therefore not interchangeable. In short, the non-fungibility attribute is what sets NFTs apart from other tokens on the blockchain.</p>
<p>&nbsp;</p>
<h3><strong>What features make an NFT?</strong></h3>
<p>As we discussed in the previous section, all non-fungible goods have unique attributes that affect their value. So, what are those features for NFTs? Tokens on the blockchain have a contract address that is exclusive for the specific group of tokens. This feature is true for both fungible and non-fungible tokens. It helps differentiate between groups of tokens, such as USDT vs BUSD, much like how we differentiate between various products in real life. However, the tokens inside the group (again, for example, Tether tokens) can be fungible because the contract address only alters them from other groups, not from each other. In contrast, non-fungible tokens, besides having a contract address determining the group, also have a token ID, a unique identifier for each NFT. The pair of contract addresses, and token ID is exclusive to a single token. The token ID makes NFTs non-fungible, meaning that even NFTs belonging to the same group (i.e., with the same contract address) are unexchangeable on a one-to-one basis.&nbsp;</p>
<p><img src="https://drive.tiny.cloud/1/hx6tw7woysd2p1n6n33jlalb4z1sj26rh50t3t5ncdlttwya/1239190b-af48-45d7-93c6-118f3cfe0fda" alt="" width="1920" height="1080" /></p>
<p>The piece of code that contains the information about an NFT is called metadata. Each NFT has unique metadata, containing information such as the token ID, contract address, attributes, and features of the token. For example, if it is an NFT of a painting, the metadata might contain the size of the painting, the title, possibly the author's name, and other information about the artwork that identifies it. Beware: it is crucial to understand that the NFT is not the painting itself but rather the token with the metadata of the painting. It is usually the case that NFTs do not contain the good associated with them but the metadata defining the good. The file (picture, song, etc.) is usually stored elsewhere since it is inconvenient and expensive storing big files on the blockchain. Therefore, the token only contains the metadata of the file.</p>
<p>&nbsp;</p>
<h3><strong>NFTs and ownership</strong></h3>
<p>As we discussed, NFTs are just a particular type of token. They differ from other tokens in the fungibility attribute, but they share many other characteristics. Like other tokens, they can be transferred, sold, and stored in a cryptocurrency wallet. This last feature enables people to keep NFTs in their wallets, claiming ownership of the files associated with the NFT. Since the metadata of the NFT is unique, there can only be one owner of the specific NFT. This feature, combined with the security of the blockchain technology, lets us use NFTs as proof of ownership. If you have a particular NFT in your wallet, no one else can have the same one; you are the sole owner of the NFT. Many believe that these unique properties of NFTs have the potential to revolutionize the concept of ownership, which will be discussed in the following lessons.&nbsp;</p>
<p>&nbsp;</p>
<h3><strong>Conclusion:</strong></h3>
<p>In this lesson, we learned that NFTs are non-fungible tokens living on the blockchain. We discussed the concepts of tokens and fungibility, and brought real-life examples of fungible and non-fungible goods. We also talked about the unique features that distinguish NFTs from other tokens. Finally, we investigated how we can use the NFT technology, a topic that will be expanded upon later.&nbsp;</p>
<p>&nbsp;</p>
<h3><strong>Explainer: Token standards and NFTs</strong></h3>
<p>As we discussed in the main article there are certain differences between fungible and non-fungible tokens. One of such differences is that NFTs have metadata that differentiates them from one another. But how exactly do NFTs get their metadata and why do fungible tokens not have it? The answers lie in the &ldquo;rules&rdquo; used for the creation of these tokens. The features, and the way tokens behave, are defined in what is called a token standard. These token standards are different for NFTs and fungible tokens, causing the above-mentioned differences between them. In this explainer, we will shortly discuss three different token standards: ERC-20, ERC-721 and ERC-1155, how they vary from each other, and what opportunities they provide.</p>
<p>Let&rsquo;s start with ERC-20. Currently it is the most used token standard on the Ethereum chain (ERC stands for &ldquo;Ethereum Request for Comment&rdquo;). The ERC-20 standard is used to create fungible tokens. A group of tokens made with the ERC-20 standard are interchangeable and one token has the same features and value as another token. The developer-friendly ecosystem of the Ethereum ecosystem and the smart-contract compatibility of the chain brought many new ERC-20 tokens to the blockchain. Since 2015 the number of new tokens has grown exponentially. Most of them have utility and a project behind them, some are meme-coins, and some are coins created by scammers to steal money. The ERC-20 standard, due to its characteristics, is useful when creating tokens that do not need to be distinct, so these tokens are useful in launchpad projects, staking platforms, charity campaigns, etc.</p>
<p>Contrary to ERC-20, a token created with the ERC-721 standard is distinguishable from other tokens. The uniqueness of ERC-721 tokens comes from a variable called token ID, that identifies a specific token in the group of other tokens with the same contract address. As we discussed in the article, the pair of contract address and token ID is globally unique, meaning there is only one token with a certain pair. The above mentioned characteristics of the ERC-721 standard makes it perfect for the creation of NFTs, since it ensures the uniqueness and non-fungibility attributes that are essential for NFTs.</p>
<p>Finally, the ERC-1155 standard is used to create both fungible and non-fungible tokens. Unlike its predecessors, the ERC-1155 standard does not limit the creator to only one token type. Unlike ERC-20 and ERC-721 tokens, the ERC-1155 standard allows each token ID to represent a new and different token type, with its own characteristics (supply, metadata, etc.). The advantage of the ERC-1155 standard is that developers do not need to deploy a new contract every time they create a new token. Instead they can create multiple tokens with the same contract, that would differ in their attributes and satisfy the developers&rsquo; needs. For instance, this token standard is used a lot by blockchain based games, where there might be various in-game tokens (swords, gold, armour, characters). The game developers can use the ERC-1155 standard to introduce all of these tokens (both fungible and non-fungible) through a single contract, saving themselves time and resources. Another advantage of the standard is the &ldquo;bundle transactions&rdquo; where you can send multiple tokens of different types with a single transaction, reducing gas costs.&nbsp;</p>
<p><img src="https://drive.tiny.cloud/1/hx6tw7woysd2p1n6n33jlalb4z1sj26rh50t3t5ncdlttwya/00fe4436-001b-49d2-aa0d-5efa3cad6c00" alt="" width="1080" height="1241" /></p>
<p>In conclusion, we discussed three different token standards used for the creation of tokens on the Ethereum blockchain. The ERC-20 standard is used for fungible tokens and assets, guaranteeing that they are interchangeable and have the same features. On the other hand, the ERC-721 standard is used to create tokens that have distinct attributes and thus are not interchangeable, allowing the creation and ensuring the uniqueness of NFTs. ERC-1155 can be used to create any types of tokens within the same contract, making it easier for developers to create new tokens and helping to save transaction fees.</p>
<p>&nbsp;</p>
<h3><strong>Sources</strong></h3>
<div class="reference-container">
<p>&ldquo;Non-Fungible Tokens.&rdquo; <em>Ethereum.Org</em>, ethereum.org/en/nft. Accessed 12 Mar. 2022.</p>
<p>Hertig, Alyssa. &ldquo;What Is the ERC-20 Ethereum Standard?&rdquo; <em>CoinDesk</em>, 9 Feb. 2021, <a href="http://www.coindesk.com/tech/2021/02/09/what-is-the-erc-20-ethereum-token-standard">www.coindesk.com/tech/2021/02/09/what-is-the-erc-20-ethereum-token-standard</a>. Accessed 20 Mar 2022</p>
</div>

Module 1: What are NFTs

<h3><strong>Introduction</strong></h3>
<p>The lesson&rsquo;s title contains two essential terms that require careful consideration, <em>real world</em> and <em>ownership</em>. The former refers to the physical world we all inhabit. The real world is the base realm of activities, and the internet-based digital world is a layer on top of it. The latter is a rather complex term as the notion of ownership has been subject to political, economic, and philosophical debates. Adding a layer of complexity is the fact that <em>ownership</em> is often used interchangeably with <em>possession</em>, although each of them hints at a different concept. For example, you can possess stuff you do not own, while you can own things without necessarily possessing them. This lesson, thus, aims to explore and clarify the different aspects of ownership in the real world. We begin by defining ownership. Then, we address two important questions: what does it mean to own something, and how do we acquire ownership? After that, we move from ownership to the related notion of <em>intellectual property</em>. Lastly, we examine the different ways through which we can prove ownership.</p>
<p>&nbsp;</p>
<h3><strong>Defining ownership</strong></h3>
<p>Ownership expresses a special and unique relationship between actor(s) and object(s). The actor can be either a private individual or a public entity, such as a government or an institution. This relationship is unique because an owner is granted total, ultimate and absolute rights to the owned asset. Ownership also has an exclusionary effect; it excludes all parties from having any right to the owned asset except the owner. However, it is important to note that the exclusive and absolute set of rights are still conditioned by and subject to the laws and regulations of the sovereign country. Hence, laws and regulations can be considered limitations and constraints to the extent that the owner can exercise their absolute and exclusive rights to the owned asset. This idea, in particular, will be important when we talk about the essential characteristics of ownership later on.&nbsp;&nbsp;</p>
<p>Now, somebody may wonder about the origin of the notion of ownership. Is it natural, in the sense that we have a natural entitlement to own things, or is it a social construct, in the sense that ownership is a product of the formation of a society and governments? We have to admit that it is difficult to answer this question, so please bear with us. Philosophers have debated this question for a long time. On the one hand, we can argue that the claim of ownership is impossible without a government since there is no authority to protect, enforce and assign claims of ownership. Hence, the claim of ownership becomes the consequence of the formation of the state. On the other hand, we can argue that humans are rational beings and, thus, can recognize and respect the claim of ownership of others without necessarily being under the authority of a government. In this sense, we have a natural entitlement to own things, and the role of the government is to protect that natural right. However, there is a common consensus that we have a natural claim of ownership over our own bodies. Even so, the government is still the primary actor for maintaining and enforcing such ownership rights through laws and regulations.&nbsp;</p>
<p>&nbsp;</p>
<h3><strong>What does it mean to own something, and how do we acquire ownership in real life?</strong></h3>
<p>In the previous section, we mentioned that owners enjoy a set of exclusive and absolute rights. It is, then, reasonable to address what these rights are. In other words, what are the privileges of the owner?&nbsp;</p>
<p>Let us consider that Maya owns a car, and she wants to know what ownership entitles her to do with that car. First, she has the right to possess the car. It is important to understand that the claim of ownership is still valid even if the owner did not have the owned things at their disposal. This means that Maya&rsquo;s claim of ownership is still applicable without physically possessing the car. Second, she has the right to use and enjoy the car in whichever way she sees fit. However, the previous is still subjected to the laws and regulations of the sovereign state. Hence, Maya cannot simply mobilize the car to harm or injure others. Third, she can drain the car while using it. Maya can even choose to destroy the car in accordance with her will, laws, and regulations. Fourth, ownership does not expire. Even when Maya dies, the transfer of ownership is still subject to and conditioned by her will. Fifth, ownership has a residuary nature. This one is tricky, but we will explain. Residuary nature refers to the fact that even if some of the rights were given away for some reason, the owner still has a claim of ownership over what was not given away. As soon as the duration of the transferred rights expires, all rights are returned to the original owner.</p>
<p><img src="https://drive.tiny.cloud/1/hx6tw7woysd2p1n6n33jlalb4z1sj26rh50t3t5ncdlttwya/faf26040-b63b-4468-9966-425efafa68dc" alt="" width="1920" height="1080" /></p>
<p>Now, let us discuss the modes of acquiring ownership. Before anything else, we have to understand that the modes of acquiring refer to the possible legal ways through which we can transfer ownership from a party to another. To begin with, people can acquire ownership through the common practice of accepting gifts and donations. Next, people can make use of their salary to buy things. Before the advent of money, people chose to barter goods in a similar manner. Hence, ownership can be acquired through purchase and exchange. Another way is through gains and profit made on an investment. In addition, people can inherit fortune and property from their deceased relatives in accordance with the deceased person&rsquo;s will.&nbsp;&nbsp;</p>
<p>&nbsp;</p>
<h3><strong>What is intellectual property (IP)?</strong></h3>
<p>Before we address the question, we have to connect traditional assets to intangible ones. In general, there are three main categories under which assets are classified: convertibility, physical existence, and usage. For our purposes, we are most interested in the second category, physical existence, from which the notion of intellectual property stems.&nbsp;</p>
<p>Under the physical existence category falls two types of assets: tangible and intangible assets. Tangible assets refer to the things which have a physical form, such as vehicles and buildings. In comparison, intangible assets refer to things that do not have nor exist in a physical form. In our case, the intellectual property belongs to the class of intangible assets. This is due to the fact that intellectual property is a notion used to refer to all creations of the mind, including books, songs, and films. However, some may argue that books exist physically and, thus, are not intangible. In this case, we have to clarify that books are just a medium we use to register and store our ideas or a unique sequence of words.</p>
<p><img src="https://drive.tiny.cloud/1/hx6tw7woysd2p1n6n33jlalb4z1sj26rh50t3t5ncdlttwya/b97da791-2669-4460-abf3-0914cc598b4b" alt="" width="1920" height="1080" /></p>
<p>From the above definition, we can raise an important question: how can we protect intangible assets such as intellectual property? We have to admit that this is a difficult question which we will amply answer later in the explainer. In brief, there are a set of laws and regulations that grant IP rights to the creator. For example, the laws grant the creator(s) the right to register their creations officially. They also protect these creations from being used without permission. However, the topic of IP rights is the subject of many legal debates. This is due to the fact that IP rights infringement is sometimes hard to prove.</p>
<p>&nbsp;</p>
<h3><strong>Proof of ownership in the real world&nbsp;</strong></h3>
<p>This section will answer three important questions: what do we mean by proof of ownership in the real world, why do we need proof of ownership, and how do we prove ownership?</p>
<p>The answers to the first and second questions are straightforward. Proof of ownership refers to the legal way through which we can demonstrate a claim of ownership. This is important since the owner enjoys and is granted a set of privileges and rights to the owned assets.</p>
<p>However, the third question requires careful examination. As I mentioned before, there are different types of assets. Importantly, the proof of ownership will vary according to the type of the owned asset. For example, assets such as vehicles are usually supplied with official documents that record ownership and other details. These documents are issued by the authorities and, thus, are considered as legal proof of ownership. In the case of theft, it is easy to differentiate between the original owner(s) and the thief by simply reviewing the official document.&nbsp;</p>
<p>In contrast, it is much harder to prove ownership of assets such as cash and clothes. This type of asset is not supplied with official documents. Instead, ownership has to rely on the conventional understanding of proof of ownership and some improvised tactics. To illustrate, let us consider the following case. Sarah was taking a walk around the neighborhood. She stopped by the bookstore to inquire about a book she requested. As Sarah was about to leave the store, she noticed a one hundred dollar bill on the ground. She picked up the money and started asking the people around. However, Sarah thought to herself that anybody could claim that this was their money. With this in mind, she decided to not reveal the amount of the money to anyone. If somebody is missing money, she thought, and their answer matches the amount, then the money must be theirs. A few minutes later, Sarah gave the money to the person who claimed to be missing a one hundred dollar bill. The tactic used by Sarah to ensure the credibility and validity of the claim of ownership is one example of a shared understanding and tactics of proving ownership.</p>
<p>&nbsp;</p>
<h3><strong>Conclusion&nbsp;</strong></h3>
<p>In short, ownership is complicated. However, in this lesson, we tried to unfold the complexity of this term. We first defined ownership, discussed the origin of the term, and showed that the government is the primary protector of the notion of ownership. Then, we listed the rights and privileges of the owner(s) over the owned assets. After that, we talked about the possible legal ways of acquiring ownership. Next, we came across the notion of intellectual property. We explained that intellectual property refers to the creations of the mind. In addition, we briefly touched upon the idea of intellectual property rights and how they are regulated by the government. Lastly, we addressed the notion of proof of ownership as a way through which the owner(s) can demonstrate a claim of ownership over an asset.</p>
<p>&nbsp;</p>
<h3><strong>Arc of Ownership 1/3</strong></h3>
<p>To help conceptualize the changing nature of ownership, we will trace out its forms from the pre-internet era up to modern day. This will separate between how one proves ownership and how exclusivity of the creation can be controlled by the creator. In this period, for example, false copies of a created work, while possible, were not easily distributed until the advent of the internet.</p>
<p><img src="https://drive.tiny.cloud/1/hx6tw7woysd2p1n6n33jlalb4z1sj26rh50t3t5ncdlttwya/f184de96-24fe-474c-beef-1d96f3062566" alt="" width="1920" height="1080" /></p>
<p>&nbsp;</p>
<h3><strong>Explainer: </strong><strong>Intellectual property rights</strong></h3>
<p>We briefly touched upon the notion of IP rights in the main article. We defined IP rights as the privileges protected and granted to the creator(s) through laws and regulations. We also mentioned that IP rights provide a legal pathway to register your creation under your name officially. However, IP rights vary legally depending on the creation and to which category this creation belongs.&nbsp;</p>
<p>This explainer aims to explore further the notion of IP rights. We will do so by, first, introducing the four legal categories of IP rights in the form of a short video. We will explain what each category includes. Then, we will address in a written form the significance of IP rights and why they exist. Lastly, we will discuss two cases of IP rights infringement and exploitation, the case of &ldquo;Adibas&rdquo; and plagiarism.&nbsp;</p>
<p>Now, let us address the question of why we have IP rights in the first place? The significance of IP rights comes from what they provide and grant to the creator(s). To begin with, IP rights give a monopoly to the creator(s) to solely benefit from their creation. This means that any creation protected by IP rights cannot be used by third parties without the creator&rsquo;s permission. Only the recognized creator(s) can choose to produce, reproduce and exploit their creation in whatever way they deem fit. In this sense, IP rights encourage individuals to invest in the business of creation. Under the protection of IP rights, individuals with great ideas can rest assured that they can benefit from their thoughts.</p>
<p>Another purpose of IP rights is to avoid confusion between the original and the copy. Many companies try to trick the buyers into buying a fake version of a popular brand. For example, companies have sold t-shirts and pants under an imitation brand called &ldquo;Adibas:&rdquo; or &ldquo;Abidas&rdquo;. However, this is not a direct infringement. Instead, it is an exploitation of the logo of the well-known brand, &ldquo;Adidas&rdquo;. Some people may end up spending hundreds of dollars on a piece of cloth they thought was manufactured by Adidas. In this case, people can differentiate between the original and the fake brand by referring to the correct and recognized-under-IP-rights logo of the brand Adidas.</p>
<p>Nevertheless, plagiarism is a more direct and severe IP rights infringement. Plagiarism is particularly relevant to the field of academia and universities. They take it very seriously as it is considered academic dishonesty. Many universities also have zero-tolerance policies for plagiarism, meaning that students may be expelled if they are found guilty of plagiarism. However, what is plagiarism, and why is it so discouraged? Plagiarism refers to the use of words and ideas of an author as your own without citing or referring to the original author. In many cases, students tend to borrow ideas from a source when they write their essays. This would be fine if the student credited the source used to extract the ideas. Hence, plagiarism is not concerned with the act of borrowing or using someone else's ideas and words. Instead, the problem is when the students do not reference the original resource and claim that these ideas are their own. Thus, plagiarism is considered a copyright infringement. Therefore, plagiarism is discouraged because it is regarded as a false claim of authorship and ownership of creation.</p>
<p>&nbsp;</p>
<h3><strong>Sources</strong>&nbsp;</h3>
<div class="reference-container">
<p>Potential. <em>Why Is It Important to Protect Intellectual Property</em>, 2015.<a href="https://www.youtube.com/watch?v=5LoKO6OR_Qg"> https://www.youtube.com/watch?v=5LoKO6OR_Qg</a>.</p>
<p>&lsquo;Intellectual Property Rights | GIP Digital Watch&rsquo;. Accessed 8 November 2021.<a href="https://dig.watch/issues/intellectual-property-rights"> https://dig.watch/issues/intellectual-property-rights</a>.</p>
<p>DurhamUniversity. <em>Intellectual Property</em>, 2016.<a href="https://www.youtube.com/watch?v=EQsZf2G4Sdc"> https://www.youtube.com/watch?v=EQsZf2G4Sdc</a>.</p>
<p>Toppr-guides. &lsquo;Difference between Possession and Ownership: Ownership vs Possession&rsquo;, 10 May 2019.<a href="https://www.toppr.com/guides/legal-aptitude/jurisprudence/difference-between-possessions-and-ownership/"> https://www.toppr.com/guides/legal-aptitude/jurisprudence/difference-between-possessions-and-ownership/</a>.</p>
<p>The Fact Factor. &lsquo;Characteristics of Ownership: Analysis of Salmond&rsquo;s Definition&rsquo;, 22 February 2020.<a href="https://thefactfactor.com/facts/law/legal_concepts/jurisprudence/characteristics-of-ownership/8896/"> https://thefactfactor.com/facts/law/legal_concepts/jurisprudence/characteristics-of-ownership/8896/</a>.</p>
<p>&lsquo;What Is Intellectual Property (IP)?&rsquo; Accessed 17 November 2021.<a href="https://www.wipo.int/about-ip/en/index.html"> https://www.wipo.int/about-ip/en/index.html</a>.</p>
</div>

Module 2: Ownership in the real world

<h3>Introduction&nbsp;</h3>
<p>As discussed in previous lessons, protecting ownership is a fundamental duty of a government which keeps&nbsp; society functioning. Without such protection, we could not assure continued creation and distribution of intellectual and physical commodities. After the emergence of the internet, digitalisation significantly expanded our ability to exchange and transfer ideas, data, value and digital goods around the world instantly, leading to an integrated global digital society. However, this rapid transition inherited many of the physical world&rsquo;s problems while also adding new legal and social dilemmas. As an example,&nbsp; intellectual property (IP) rights became fragile due to copyright violations facilitated by technological development. Further, both rights and obligations became more ambiguous for all the sides of the economic relationship: creators, mediators, and buyers alike. This lesson tracks the development of ownership since the emergence of the internet, and diagnoses issues facing personal digital ownership and intellectual property rights.&nbsp;</p>
<p>&nbsp;</p>
<h3>The Decline of Ownership in the Digital Age</h3>
<p>In modern times, personal ownership implies different rights and obligations for the physical and digital realms. In the digital world, buying a good often refers to the right to access (or, license) something, rather than actually owning that thing. For instance, digital goods are subject to limitations on the terms of use imposed by both law and technology. When we buy digital goods, we don&rsquo;t have the rights to share them, or in some cases use them on other platforms which offer similar services. Furthermore, our right of access can be revoked at any time. For instance, In 2009, Amazon, the largest e-commerce and book store in the world, erased George Orwell&rsquo;s 1984 from its e-book reader, Kindle, and compensated everyone who purchased it, over a dispute between the company and the novel&rsquo;s publisher. While the company could not possibly go to the house of each owner of the physical book and ask for it to be returned, they easily confiscated the digital version of the book without even consulting with the &ldquo;owner&rdquo;.</p>
<p>The digital age similarly reduces control over intellectual property (IP), especially given that data can be infinitely reproduced and instantaneously distributed all over the world. Illegally copied books and unofficial retailers became a serious issue; it became almost impossible to protect intellectual property because data flow could not be controlled. All one needs is an internet connection and a computer or a mobile device to access copyrighted content with an incredible ease, undermining intellectual property rights. With the wide adoption of the internet, despite the fact that creators can effortlessly reach a global community, there is no guarantee that content creators will be properly paid, or even attributed, for their work. Challenges also exist on the buyer&rsquo;s side. Proving ownership can be extremely difficult in the digital age, where documentation of ownership could be easily manipulated&ndash;&ndash;rapid data transformation made the issue much worse.&nbsp;</p>
<p>Take, for example, the situation of poets who are exposed to fragmented IP rights. Before the emergence of the internet, we might have paid to obtain a poem collection or physically attend a poet&rsquo;s seminar, which might drive some revenue. After digitalization, however, a poet&rsquo;s creativity might not be sufficient as the main source of income. Poems are likely to be shared online for free and it&rsquo;s almost impossible to track or hold anyone accountable for these violations. This is the case for the majority of intellectual property on the internet, from e-books to games to music, where copyrights are simply violated without the consent of the owners. With the introduction of the internet, traditional property laws were rendered inadequate to meet the needs of a digitally driven society.&nbsp;</p>
<p>&nbsp;</p>
<h3>Claiming Back Ownership:&nbsp;</h3>
<p>The copyright laws were more or less transferred directly from real world assets to digital assets, yet the global nature of the internet makes enforcing laws connected to copyright difficult. In response, many attempts have been made to enhance control of intellectual property.&nbsp;</p>
<p>&nbsp;</p>
<h3>Laws, Conventions and Treaties</h3>
<p>Among these attempts was the creation of new legal frameworks specially designed for digital ownership, which aimed for a global standard to balance intellectual property protection with the rights of online service providers. In the US for example, Digital Millennium Copyright Act (DMCA) was implemented to criminalize any attempt to produce and disseminate the technology, devices, or services that could violate copyrights. For instance, if you create a program which downloads songs for free from an official website, you are legally liable for violation of copyrights even if you didn&rsquo;t personally use it.&nbsp;</p>
<p>A criticism for these legal frameworks is that they are limited to the country which issued them. A Chinese citizen would not be legally liable for these violations unless his/her home country (China) issued similar laws, or respected the laws of the other country. Secondly, these laws are not dynamic enough to adequately respond to peer-to-peer copyright violation and the User Generated Content (UGC) websites.</p>
<p><img src="https://drive.tiny.cloud/1/hx6tw7woysd2p1n6n33jlalb4z1sj26rh50t3t5ncdlttwya/e573bd66-d2b9-4d50-a888-cdd2d68e685e" alt="" width="1920" height="1080" /><span style="font-family: Poppins; font-size: 8pt;">Peer-to-Peer&nbsp;</span></p>
<p><span style="font-family: Poppins; font-size: 8pt;"><img src="https://drive.tiny.cloud/1/hx6tw7woysd2p1n6n33jlalb4z1sj26rh50t3t5ncdlttwya/f592070a-50c3-4841-ab06-0d22d2a514e4" alt="" width="1920" height="1080" /></span><span style="font-family: Poppins; font-size: 8pt;">User Generated Content</span></p>
<h3>Legal Remedies&nbsp;</h3>
<p>Free file-sharing technologies emerged in the late 90s, enabling users to effortlessly share copyrighted digital items such as songs and movies for free. However, many of the websites and servers were subjected to legal prosecution due to copyright infringements. The Pirate Bay for instance, which is an online index that allows its users to share and download Bittorrent files, was subjected to many lawsuits, domain attacks, and shutdowns (as an aside, this sparked a political movement known as the Pirate Party, which advocates mainly for copyright law reforms and the promotion of open content and information privacy). Such legal remedies do not sufficiently protect property rights; jurisdictions can be easily avoided by the user if they hide their internet protocol address (IP address) and identity (by using Tor or a VPN). Additionally, unauthorized content sharing sites can migrate domains to more open source friendly jurisdictions or those with less-enforceable laws.&nbsp;</p>
<p><img src="https://drive.tiny.cloud/1/hx6tw7woysd2p1n6n33jlalb4z1sj26rh50t3t5ncdlttwya/0c49d986-1cec-440b-a6a7-1bee47380afa" alt="" width="1920" height="1080" /><span style="font-family: Poppins; font-size: 8pt;">The Onion Router</span></p>
<h3><img src="https://drive.tiny.cloud/1/hx6tw7woysd2p1n6n33jlalb4z1sj26rh50t3t5ncdlttwya/78185eab-90b7-4a83-92e9-66bcb789ea1f" alt="" width="1920" height="1080" /></h3>
<h3>Watermarks&nbsp;</h3>
<p>Watermarking is the process of adding a signifier (physical or digital) of creative ownership. Digital watermarking has two main types, visible and invisible. Visible watermarks are similar to those that are used on traditional physical products, such as banknotes and important documents, and are used to assert the authenticity of the object. Visible watermarks in the digital space can be seen as a logo or a text that is added over an image or a video, or a soundbite that is added to an audio file. Many critiques arise to watermarks as they can negatively affect the quality of the user experience or disrupt the flow of the digital product. On the other hand, invisible watermarks can be embedded in the data of the digital file (a practice known as &ldquo;Steganography&rdquo;) that allows the original owner of the file to assert their ownership of it and use it to track and follow the individuals who are infringing on their intellectual property. Effectively, visible watermarks are used to declare ownership while invisible watermarks are used to catch the person who is committing the copyrights violations.&nbsp;</p>
<p>However, both techniques have limitations. Visible watermarks can be digitally removed and invisible watermarks can help identify the person who copied the file for the first time, but not those who share it and distribute it afterward.</p>
<p>&nbsp;</p>
<h3>Limiting access using software&nbsp;</h3>
<p>Digital Rights Management (DRM) software attempts to protect files in their digital forms from being downloaded and distributed illegally. DRM usually comes in two forms, either enabling users to access the protected data and files through third-party software or having cloud-based storage in which the data will be stored and only accessed through a Content Management System (CMS) or an e-commerce platform. While DRM can help in protecting digital property from being copied or downloaded directly, they are easy to circumvent using screen recorders or sound recorders. In addition, DRM tools can be compromised and cracked which can allow people to access the files without complying to the creator&rsquo;s requirements.</p>
<p>&nbsp;</p>
<h3>Limitations to ownership</h3>
<p>Exclusive and provable ownership can be seemingly impossible to achieve in a traditional digital system. However, there are digital products that are easier to own, alter, and control. For example, there are numerous sites and platforms that offer stock images, videos, audio files, etc. and anyone who either pays a subscription fee to one of those platforms or buys a single stock product can use the said product as they desire, whether by embedding it in a marketing campaign, using it as an element in a digital art design, or even altering and changing it completely. However, this is still not a form of true ownership as the platform through which the product was acquired can still take legal action in some cases, such as being able to prove that one or more of their products are being sold or redistributed without their prior consent.</p>
<p>Some limitations of ownership in a digital space almost mirror the limitations in the traditional realm. For example, if an individual was somehow to acquire ownership of a physical product that can cause harm to other people, living beings, or the environment, and that individual resided in a society where laws are enforced, they will not be able to use that product in a manner that causes harm.</p>
<p>By reflecting on that idea, we can see that while that person might have a license to own, move, or even use that product, that license has its preset limitations on that usage. The same idea can be pegged into the digital space, while individuals can acquire a license to watch a show, listen to a soundtrack, or read a book as many times as they desire, that license most probably comes with a set of rules on the types of usage and the terms and conditions that are not to be broken while doing so.</p>
<p>&nbsp;</p>
<h3>Arc of Ownership 2/3</h3>
<p>We now trace the arc one step further! The internet age disrupted old ideas of ownership, intellectual property, and exclusivity of content. By connecting computers in a vast web, content could be distributed effortlessly. As we have seen, this presented an entirely new set of challenges:</p>
<p><img src="https://drive.tiny.cloud/1/hx6tw7woysd2p1n6n33jlalb4z1sj26rh50t3t5ncdlttwya/0f2f46a2-367c-4417-a28d-51fbe6c29e40" alt="" width="1920" height="1080" /></p>
<h3>Explainer: How Napster changed the music industry</h3>
<p>As we discussed in this lesson, the adoption of the internet made it nearly impossible to protect IP and ownership rights. Most artistic disciplines were faced with this issue, but the music industry underwent a particularly radical transformation. In this explainer we will talk about Napster, a service that changed the music industry and the assumptions of digital ownership.</p>
<p>Up until the early 2000s, musicians worked with record labels, recording their albums and releasing them in stores both large and small. People would then have to buy the CDs to have the opportunity to listen to their favorite songs. This model worked well enough for the musicians and particularly for record studios, who heavily profited from CD sales. However, the mass adoption of computers and digital technology in the late 90s gave birth to new alternatives for distributing music. Eventually, MP3 files came onto the scene, which allowed users to compress audio files from their CDs and store them on their computer. Crucially, this also made it possible to send the audio files over the internet. The stage was then set for a service to copy music from those who purchased it to those who didn&rsquo;t.</p>
<p>Napster, an online peer-to-peer file sharing service, was created in 1999 and aimed to do just that. With this new software, users would share the contents on their hard drive with others, who could then download the MP3. No purchase necessary. The user base consisted mainly of college students who tapped into their generally fast campus internet connections. Soonafter, however, the software caught the attention of music groups and recording studios, who were unenthusiastic about their declining profit margins. In 2000, even the famous heavy metal band Metallica joined forces with other representatives of the music industry and filed a lawsuit against Napster. The sharing service was accused of copyright infringement under the US DMCA, and after a year-long lawsuit process, it was forced to shut down and stop its services.</p>
<p>While Napster did not have a particularly long life, it indelibly changed the landscape of the music industry. Soon after its shut down, many other services sprouted up to take its place. Although there was fierce resistance in the form of lawsuits, the damage (or liberation, depending on your ideology) was already permanent. CD stores were losing customers and began to close up shop. A middle way was developed when Steve Jobs introduced the iTunes music store, balancing the near-instant speed of the internet and a reliable payment system. By giving people an online (and legal) method to pay for music, labels and music groups rushed into iTunes, and over the next years online music stores became the dominant way of obtaining music. However, this model was likewise usurped by free music streaming platforms such as Spotify and Pandora.&nbsp;</p>
<p>In conclusion, Napster transformed the ideas of ownership, and proved how ineffective traditional IP rights can be in the digital age. While it didn&rsquo;t comply with copyright laws and regulations, and was forced to shut down, it changed the way we think about music. It also led to the creation of online music stores and streaming apps and made it more affordable for people to listen to music, and shifted the focus of the industry to the consumer side.</p>
<p>&nbsp;</p>
<div class="reference-container">
<h3>Sources:&nbsp;</h3>
</div>
<div>
<div class="reference-container">
<p>The End of Ownership Personal Property in the Digital Economy &copy; 2016 MIT</p>
<p>John Perry Barlow in The Economy of Ideas 1994&nbsp;</p>
<p>Managing intellectual Property Protection in the Digital Age&nbsp;</p>
<p>The Pirate bay case: repercussions beyond Sweden?&nbsp;</p>
<p>Khanzode, Prachi, et al. &ldquo;Digital Watermarking for Protection of Intellectual Property.&rdquo; IJCEM International Journal of Computational Engineering &amp; Management, vol. 12, Apr. 2011, <a href="https://www.ijcem.org/papers42011/42011_03.pdf">https://www.ijcem.org/papers42011/42011_03.pdf</a>.</p>
<p>Geoffrey A. Manne &amp; Neil Turkewitz, et al. &ldquo;Understanding Ownership and Property in the Digital Age.&rdquo; International Center for Law &amp; Economics, 27 Sept. 2017, <a href="https://laweconcenter.org/resource/understanding-ownership-and-property-in-the-digital-age/">https://laweconcenter.org/resource/understanding-ownership-and-property-in-the-digital-age/</a>.</p>
</div>
<p>&nbsp;</p>
</div>

Module 3: How does ownership work in a digital world

<h3><strong>Two properties of NFTs: exclusivity and traceable origin</strong></h3>
<p>As we explained in the previous article, traditional ideas of ownership and intellectual property (IP) were upended with the widespread adoption of the internet. Companies responded to new threats to IP monetization by using digital rights management (DRM) software and region locking content. Still newer technology, such as VPNs, came onto the scene to circumvent previous protections on content. The latest development in this series is the capability to write ownership immutably onto a blockchain via non-fungible tokens (NFTs).</p>
<p>While many analogies get us close to the function of an NFT, a particularly useful one in this case would be a &ldquo;claim on ownership&rdquo; of something. This &ldquo;something&rdquo; can be a land deed, an artwork, or a concert ticket (among many other use cases), each of which indicating a nuanced definition of &ldquo;ownership&rdquo;. For simplicity, in this article we will stick with the trend of using the term NFT as they concern digital artistic works, except where noted otherwise. Later we will look &ldquo;under the hood&rdquo; of NFTs for a more comprehensive view.&nbsp;</p>
<p>The essential component of an NFT is its uniqueness, or <strong>exclusivity</strong>; the &ldquo;non-fungibility&rdquo; of the NFT indicates that no two copies are exactly alike. Importantly, this includes visually identical works created by the same artist, for example when 300 &ldquo;copies&rdquo; of something are made. Each is tagged with a unique identifier (or &ldquo;tokenID&rdquo;) which proves that it stands apart from all imitators. This means that if someone were to try and make copies of a NFT (say, by right clicking &ldquo;save as&rdquo; and creating a new NFT from that image), going through the exact same process of creation, the works would be demonstrably unique. The creator&rsquo;s address and token symbol may be the same, but the tokenID will be new. This data &ldquo;lives&rdquo; on the blockchain and can be openly verified by anyone, removing the need to trust a central authority about an artwork&rsquo;s exclusivity, unlike in the traditional art world.</p>
<p>That each NFT is an exclusive work is without question, but its claims of true digital ownership go further. The <strong>origin</strong><strong> </strong>- or, its &ldquo;provenance&rdquo;, as it is known in the art world - can also be publicly verified. The creator&rsquo;s public blockchain address, which is included as part of the NFT code, is open for all to see. Moreover, the public address of anyone who (even momentarily) owned the specific NFT can be checked, with the important caveat that the blockchain address does not reveal the true identity of their owner, unless this is voluntarily given away.</p>
<p>These two facts, that each NFT is <strong>exclusive </strong>and of <strong>traceable origin</strong>, have significant implications concerning fair payment for artistic works. Specifically, NFT technology enables an environment where royalties can be effortlessly routed to the creator of the work. Such royalty payments to content creators can be written into the code of the NFT smart contract. In the previous internet age, there existed serious disincentives for an artist to create a work that could easily be replicated and sold without permission. In the new age of Web3, the creator is the true master of their artistic domain. As in traditional art markets, artists can also determine a work&rsquo;s <strong>scarcity</strong>. Importantly, an NFTs non-fungibility does NOT mean that they cannot easily be traded. On the contrary, participants can effortlessly and instantly buy, sell, and transfer ownership of NFTs via online marketplaces.</p>
<p>A further advantage of the NFT system of ownership is that the <strong>records do not rely on a centralized server or entity</strong>, since they are recorded onto the blockchain. This means that the data written into the NFT is virtually certain to always be in place. This property gives an NFT a sort of <strong>tamper resistance</strong> as well.</p>
<p>&nbsp;</p>
<h3><strong>What do you own when you own an NFT?</strong></h3>
<p>While NFTs could revolutionize many industries, it is important to know what is technically owned when someone purchases an NFT. Contrary to a popular narrative, it is not exactly the art itself that is owned. For instance, it is not the .jpeg or .mp3 that is transferred to the buyer&rsquo;s digital address. As said before, NFTs can be thought of as the <em>claim</em><strong><em> </em></strong>of ownership which points to a thing owned somewhere else. This claim takes the form of &ldquo;metadata&rdquo;, a digital fingerprint that represents, or points to, something else.&nbsp; Practically, this says &ldquo;user X owns thing Y which can be found at location Z&rdquo;.&nbsp;</p>
<p><img src="https://drive.tiny.cloud/1/hx6tw7woysd2p1n6n33jlalb4z1sj26rh50t3t5ncdlttwya/1521a5d3-0f84-45d7-a4b9-a4ab5100996b" alt="" width="1920" height="1080" /></p>
<p>On a technical level, an NFT is defined at a minimum by its &ldquo;tokenID&rdquo; and its &ldquo;contract address&rdquo;. Additionally, they generally indicate the creator&rsquo;s blockchain wallet address and a link to where the referenced work can be found (usually outside of the blockchain). Because space on the blockchain is expensive, the referenced object is generally stored &ldquo;off-chain,&rdquo; either in centralized or decentralized storage.&nbsp;</p>
<p>Just as NFTs have a variety of use-cases, they can represent a wide <strong>spectrum of ownership</strong> (or, intellectual property). If, for instance, you buy a piece of digital art, there is a direct connection between the NFT and the art. Such instances are easy to conceptualize, given that art sales also work this way outside of the internet. However, if someone were to tokenize their twitter post and sell it to you using the tweet NFT marketplace, Cent, it becomes less clear what is owned. There is nothing on the twitter website itself that you own. Instead, this is akin to owning an autographed version of a tweet, with the consent of the tweet&rsquo;s creator, hosted on Cent. Some platforms however, do not require that the sourced file, such as a .jpeg screenshot, has the consent of its subject or creator.</p>
<p>&nbsp;</p>
<h3><strong>NFT ownership &amp; trust assumptions</strong></h3>
<p>Even with the trustless nature of blockchains, there are some important trust assumptions to consider when talking about the ownership of NFTs. First, we informally <strong>trust that the artists will not release the same limited edition works in multiple places</strong>, such as other blockchains. If a similar limited edition work from the same creator appears both on the Ethereum network and on Solana, the work will be devalued. Even though each NFT is technically unique, this would effectively reduce the scarcity of the art. In this case, the purchaser of the NFT cannot rely on the &ldquo;practical exclusivity&rdquo; of the art being represented, and has a diluted claim to ownership of a specific artwork.</p>
<p>Users likewise <strong>trust that they will be able to access the digital asset</strong> when desired. For instance, if the image represented by the NFT resides on a centralized server, there is a risk that the server goes offline. Were this to happen, the user could see that they owned an NFT on the blockchain, but could not access it. There are current solutions to this problem, however. Many images and videos tied to NFTs live on decentralized storage, such as the Interplanetary File System (IPFS), or even on other blockchains that are designed for storage (e.g. Arweave and Filecoin). On a related note, in the case of platforms like Cent, where only verified tweets are auctioned, the user must <strong>trust that the platform remains in business</strong>. Each of these assumptions are embedded into NFT ownership and can determine the value of the token.</p>
<p>&nbsp;</p>
<h3><strong>Legal implications of NFT ownership</strong></h3>
<p>NFTs raise important legal considerations. For instance, when a buyer obtains an NFT, do they also own the copyright? Some NFT marketplaces are attempting to be proactive in this space and give the creators an option to transfer the rights along with the NFT, although most NFTs do not currently include such transfers. It remains to be seen whether an artist checking a box constitutes the legal transfer of rights. Much of this depends on a country&rsquo;s legal system, and, specifically, what counts as an electronic signature.&nbsp;</p>
<p>Further, legal systems and NFT platforms will have to decide how to deal with an NFT created from a work that one does not own (for instance, tokenizing a .jpeg of the Mona Lisa). Many NFT platforms are tackling this by acting as authenticators of the artwork, and broadly removing works that appear to infringe on an artist&rsquo;s intellectual property.</p>
<p>&nbsp;</p>
<h3><strong>Conclusion</strong></h3>
<p>All said, NFTs offer a novel approach to digital ownership. Artists and the like are empowered to create and receive payment and royalties via NFTs that &ldquo;point&rdquo; to the digital creation. Users of NFT marketplaces have assurances of exclusivity and can verify the origin and transaction history of the works. However, this new approach has uncertainties of its own that are yet to be fully grappled with. Indeed, the very definition of &ldquo;ownership&rdquo; must broaden to encompass all forms of NFTs. There are, additionally, trust assumptions of &ldquo;practical exclusivity&rdquo; and access that all actors make when buying and selling NFTs. Lastly, the untrodden legal grounds of the NFT space leaves some ambiguity about ownership and copyrights which will inevitably be debated in courtrooms in the coming years. Yet, one thing that is not up for debate is the fact that the legacy ideas of ownership are being shaken up, which will be supplemented or usurped by a new regime of decentralized digital ownership.</p>
<p>&nbsp;</p>
<h3><strong>Arc of Ownership 3/3</strong></h3>
<p>With the advent of NFTs, we at last arrive at the present version of ownership. Like the Pre-NFT internet, products can be brought swiftly to the market and can be traded in an instant. However, we have seen some important changes in the institutions of ownership:</p>
<p><img src="https://drive.tiny.cloud/1/hx6tw7woysd2p1n6n33jlalb4z1sj26rh50t3t5ncdlttwya/bc718ac7-f6e5-48c7-a6a1-f4c7d3859997" alt="" width="1920" height="1080" /></p>
<p>&nbsp;</p>
<h3><strong>Explainer: &ldquo;Have Fun Staying Poor&rdquo;</strong></h3>
<p>In October 2021, a twitter user <a href="https://www.ze.fi/page/262919f3-5e20-4635-870f-08d964e9f12d">mocked</a> the increasing trend of NFT ownership. The user, @ActNormalOrElse quipped by <a href="https://twitter.com/ActNormalOrElse/status/1444405988413554691?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1444405988413554691%7Ctwgr%5E%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fwww.fxstreet.com%2Fcryptocurrencies%2Fnews%2Ftweet-mocking-how-little-value-nfts-have-is-turned-into-5k-nft-202110050040">tweeting</a> that using &ldquo;right click -&gt; save as&rdquo; was an effective method to claim the art being represented by NFTs. The user followed up with a post describing the anger of the NFT community at her comment. In an ironic twist, somebody then minted a picture of her tweet into an NFT titled &ldquo;Have Fun Staying Poor&rdquo;, which was sold on NFT on OpenSea for 1.5 ETH, or ~$5,300 at the time.</p>
<p><img src="https://drive.tiny.cloud/1/hx6tw7woysd2p1n6n33jlalb4z1sj26rh50t3t5ncdlttwya/4a53faaa-3cd8-4c79-86d6-7326b9631ecc" width="563" height="308" /></p>
<p>&nbsp;</p>
<h3><strong>Sources:&nbsp;</strong></h3>
<div class="reference-container">
<p><a href="https://medium.com/@nic__carter/why-nfts-are-hard-to-explain-48f0ab0a35bf">https://medium.com/@nic__carter/why-nfts-are-hard-to-explain-48f0ab0a35bf</a></p>
<p><a href="https://opensea.io/blog/guides/non-fungible-tokens/">https://opensea.io/blog/guides/non-fungible-tokens</a></p>
<p><a href="https://www.schoenherr.eu/content/formulating-a-smart-contract-and-minting-an-nft/">https://www.schoenherr.eu/content/formulating-a-smart-contract-and-minting-an-nft/</a></p>
<p>Fai, Andrew. n.d. &ldquo;Smart Collectibles: Unlocking The Value of Non-Fungible Tokens (NFTs),&rdquo; 12.</p>
<p>Guadamuz, Andres. 2021. &ldquo;The Treachery of Images: Non-Fungible Tokens and Copyright.&rdquo; SSRN Electronic Journal. <a href="https://doi.org/10.2139/ssrn.3905452">https://doi.org/10.2139/ssrn.3905452</a>.</p>
<p>Wang, Qin, Rujia Li, Qi Wang, and Shiping Chen. 2021. &ldquo;Non-Fungible Token (NFT): Overview, Evaluation, Opportunities and Challenges.&rdquo; ArXiv:2105.07447 [Cs], October. <a href="http://arxiv.org/abs/2105.07447">http://arxiv.org/abs/2105.07447</a>.</p>
<p>&nbsp;</p>
</div>

Module 4: The NFT Approach to digital ownership

<h3><strong>Introduction</strong></h3>
<p>In previous modules, we tackled concepts like ownership. We learned what ownership is and how digital ownership differs from physical ownership. We also discussed intellectual property and copyrights, where we identified the problem of proving ownership over something existing on the internet and how NFTs approach this problem. We also talked about concepts like fungibility and what it means that something is non-fungible. In this module, we will introduce the concept of smart collectibles and how they relate to NFTs to try and understand the difference between them. After doing so, we will move on to discuss use cases for NFTs and how they apply to both the physical world and the virtual one.</p>
<p>&nbsp;</p>
<h3><strong>Use Cases And applications&nbsp;</strong></h3>
<h4><strong>Smart collectibles&nbsp;</strong></h4>
<p>The most prominent use for NFTs so far has been digital art, such as the piece by the artist &ldquo;Beeple&rdquo; that sold for 69 million dollars. However, possible applications extend far beyond artwork. NFTs make it possible to tokenize experiences and give access to further value, rather than just representing a piece of digital art. To be able to grasp these opportunities that surround this technology, we have to talk about the concept of smart collectibles. Smart collectibles are NFTs that give access to something that exists outside of the blockchain , for example when an NFT is tied to a concert ticket. These are stored as NFTs on the blockchain and reside at someone&rsquo;s public address just like any other token. Smart collectibles can be used to grant access to events and services in general and have nearly limitless applications.&nbsp;</p>
<p>From a technical perspective, all smart collectibles are NFTs, as they are created and built the same way. The difference comes regarding their use. In addition to any speculative value of, say, NFT artwork, smart collectibles have a further value by representing a physical/virtual resource, media ownership, or voting rights, for example. Consider again the case of an NFT concert ticket. Here, the NFT proves that you paid for the ticket, enabling you access to a venue and the concert experience (the further value).&nbsp;</p>
<p><img src="https://drive.tiny.cloud/1/hx6tw7woysd2p1n6n33jlalb4z1sj26rh50t3t5ncdlttwya/81cbb577-69b2-4554-adea-52201f910d73" alt="" width="1920" height="1080" /></p>
<p>This lesson will divide the use cases into two different aspects. First, we focus on NFTs use cases that relate to our physical reality as they solve and ease interaction with ownership. Second, we look at NFTs applications that relate to the virtual world, as they function as a stepping stone for future application within blockchains and digital development.</p>
<p>&nbsp;</p>
<h3><strong>NFTs use cases in the real world</strong></h3>
<h4><strong>Real estate&nbsp;</strong></h4>
<p>As we have seen in previous modules, NFTs represent assets that are non-fungible. This means that they could easily be tied to non-fungible assets in real life (cars, real estate, etc..) to prove ownership and facilitate asset exchange.&nbsp;</p>
<p>Consider the following example: Salma has been working hard to buy an apartment. She later finds the apartment of her dreams, which she can finally afford. When she goes to pay, she finds a 5% broker fee tied into the purchase. Unfortunately, she can not do anything about it, as she signed the contract already, so she simply pays the fee. However, after moving in, Salma accepts a job offer in another country and has to permanently relocate (and sell her apartment). After her bad experience with the broker, she decides to try and sell it herself, avoiding any brokerage fees. After days of research, Salma realizes that the best way to go about it is to store the proof of ownership over the apartment as an NFT on the blockchain. This way, she can sell the apartment herself in a peer-to-peer interaction without depending on third parties. Once the apartment is sold, Salma can transfer the proof of ownership easily to the new owner who will transfer the money to Salma&rsquo;s wallet. This whole process could be done using a smart contract to ensure that Salma will get her money down to the penny as soon as the proof of ownership is transferred to the buyer.&nbsp;</p>
<p>This application, however, is still far from being realized, since it involves legal obstacles that are yet to be tackled by regulatory institutions. Nonetheless, applying NFTs in this way opens the door for a real estate market without third parties, where people can buy homes and sell them from anywhere in the world.</p>
<p>&nbsp;</p>
<h4><strong>Ticketing to events&nbsp;</strong></h4>
<p>One interesting application for NFTs is their use as tickets for events like concerts or sports games. In this scenario, the event host would issue a number of NFTs then sell them to those who wish to attend the event. Alternatively, the event organizers could create a smart contract where there is a certain number of NFTs that can be created, or &ldquo;minted&rdquo;, as the process is called. Additionally, the tickets could be sold for a flat price or tied to an auctioning mechanism. Once the ticket is bought, the buyer can save it in their digital wallets on their mobile phone to show it later at entry.&nbsp;</p>
<p>This use of NFTs has quite some advantages for event organizers as it gives a counterfeit-proof method for admission into events. It also enables event hosts to control the secondary market for tickets, as the use conditions can be encoded into the NFT. One way to do this is to include the name of the attendee in the metadata of the NFT token. Another way is to create NFTs that are not transferable after they are minted.&nbsp;</p>
<p>NFT ticketing can also enhance the actual experience of the event. Paper or QR-coded tickets - while convenient for entry - are bad at evoking the memory of the event. I am guessing that you probably have hung a ticket from your favorite band concert on your wall. Although this physical ticket might have sentimental value, it cannot directly embody what happened at the event. With NFT tickets, event organizers will have the chance to share exclusive videos and pictures from the event afterwards only with those who own an NFT ticket, opening the door for a new form of interaction between fans and their idols.</p>
<p>&nbsp;</p>
<h4><strong>Saving identity records and important papers</strong></h4>
<p>Sometimes we do not have physical access to essential documents such as identity records. NFTs come in Handy as they provide a way to store important records online for easier access.&nbsp;</p>
<p>Let us think about the following scenario: Salem fled Syria in 2015 and he is now in Germany. Salem and his partner, whom he has known since they studied together in Syria, decided to get married, and she would like to join him in Germany to have the life they always wanted together. However, in order for his wife to obtain a visa, Salem needs to show the German authorities a copy of his birth certificate. The problem is that he has no contact with his family and friends inside Syria. This means that he cannot get the birth certificate from that drawer where his family keeps all important documents. Fortunately, he saved scans of all his important documents as NFTs and saved them in his personal digital wallet. This way, Salem saved himself a lot of stress and costs.&nbsp;</p>
<p>The advantage here is that even if the documents get leaked and tampered with, Salem&rsquo;s papers are saved and always point back to him as he included his name and the type of document in the metadata of each NFT.</p>
<p>&nbsp;</p>
<h3><strong>NFTs use cases in the online world</strong></h3>
<h4><strong>Digital art</strong></h4>
<p>By far, the widest application for NFTs has been digital art. You probably have heard about artists who sold digital artworks as NFTs for millions of dollars. As discussed in previous lessons, NFTs provide a way to solve the digital ownership problem on the internet. On the web, things could easily be copied or used without the permission of their owner or creator, which leads to many cases of copyright violations. Imagine that you are a designer and have loads of work that you never post on social media because your work always gets stolen. NFTs provide a way for you to showcase your art or maybe even sell it if you want, without having to worry about theft. This is done by creating an NFT for your piece of digital art and linking the image and your name (as the creator) in the metadata. This way, even if you sold the NFT and the ownership changed hands, the metadata will prove that you are the creator of this piece of art and the transaction history on the blockchain will link back to your public address as the person who minted the NFT. It is true that this work can be copied or downloaded by anyone. However, only the holder of the NFT can demonstrably prove that they own the work.</p>
<p>In many cases, artists struggle not only with showcasing their digital art but also selling it through galleries. Although galleries may be a good place for artists to collaborate and sell their art, galleries also act as a third party that charges fees on the sale just like brokers. Using NFTs, artists have the ability to sell their works in a peer-to-peer interaction without having to pay fees for galleries. NFTs, through the use of smart contracts, allow for artists to still reap the fruits of their works even after they sell them through royalties. Royalties are a percentage of future sales of digital art pieces that artists can earn each time their work is resold.&nbsp;</p>
<p>So far, with all the hype surrounding the blockchain and NFT space, this feature of creating and owning digital arts is largely used for speculation. However, this does not take away from the advantage this technology gives to the artists to own and trade their own works without the costs of third parties or galleries that usually take a lot of fees to showcase works.</p>
<p>&nbsp;</p>
<h4><strong>Decentralized domains</strong>&nbsp;</h4>
<p>&ldquo;Web 3.0&rdquo; is a term that characterizes a new version of the internet that is enabled through Blockchain technology. One of the use cases for NFTs is that they could be sold as Web 3.0 domains, similar to a traditional internet name registrar. In this case, NFTs allow you to access a domain on the web for a certain amount of time. Unstoppable Domains and the Ethereum Name Service (ENS) provide such Web 3.0 domains that could be traded in the form of NFTs. Additionally, these domain names can be registered to a wallet and function as its public address, as opposed to using the cryptographically generated string of characters. For example, if you need to send Salma money to help her move into her new city, instead of typing or copy/pasting her public address (e.g: 0x3h4fz4&hellip;.a314), you could simply type &ldquo;salma.eth&rdquo; into the recipient address and be assured that it is going to the right person.&nbsp;</p>
<p>The advantages of this NFTs application are not only that they add a nice touch of personalization to your public address, it also turns your wallet into a database where you can send and receive emails and store data (like Salem&rsquo;s birth certificate). Additionally, it gives you the chance of linking different wallets from different blockchains under the same domain. In a sense, this domain becomes a personalized digital identity for you.</p>
<p><img src="https://drive.tiny.cloud/1/hx6tw7woysd2p1n6n33jlalb4z1sj26rh50t3t5ncdlttwya/cdc01483-6284-4a57-995f-e9d92cff747f" alt="" width="1920" height="1080" /></p>
<p>&nbsp;</p>
<h3><strong>Conclusion&nbsp;</strong></h3>
<p>In this module, we discussed some of the use cases and applications for NFTs. However, the possibilities are endless. NFTs do solve some already existing problems and reshape the way we think of ownership in both the digital and real world. Besides that, they open the door for inventions by proposing novel solutions to the digital ownership problem. NFT technology allows us to dream up and program applications that were unthinkable before, with use cases in real estate, identity verification, art, and much more. We may soon even have to reckon with entire NFT-enabled virtual worlds. What is already assured is that NFTs will change the landscape of our modern world and, hopefully, enable us to eliminate a few middlemen along the way.</p>
<p>&nbsp;</p>
<h3><strong>Explainer:&nbsp;NFTs as the building blocks of Zuckerberg&rsquo;s Metaverse.</strong></h3>
<p>If you have been keeping up with the technology sector, then you probably have heard about the latest announcement that Facebook changed its name to &ldquo;Meta&rdquo;. This change comes as a milestone for the metaverse that Meta is trying to build. A metaverse is a collective shared virtual space, where people can hang out, work, and play together; you could think about it as a virtual city. Whether this anticipated metaverse is going to be beneficial for us or not we will not be able to tell now. But one thing is for sure, Building a virtual world would not be possible without having the ability to prove our ownership over virtual assets through NFTs. What has previously been relegated to science fiction movies is now becoming a reality. NFTs are driving this transformation, but how?</p>
<p>As we discussed in this lesson, NFTs have endless applications and use cases that solve already existing problems in our lives and provide an easier way to deal with digital assets. By building a metaverse, we would need a way to prove ownership over our assets, and so far the only possible way to do that digitally is through the use of NFTs. Different decentralized projects on the Ethereum blockchains and other blockchains already have functioning metaverses that you can visit and create your own avatar on. You then are able to walk around in these virtual cities, chat, and hang out with other people. These metaverses have pieces of land that can be purchased as NFTs that give you access to the land to build houses, broadcast videos, or simply own a piece of land that you can rent for specific uses like putting up a banner.&nbsp;</p>
<p>It is hard to imagine a virtual world being built up without NFTs as only they could both interact with the metaverse and represent our ownership of that thing. Imagine, for example, buying a house in the metaverse that you would like it to be a private exclusive space for you and your friends to hang out at. It would be counterintuitive to leave the access open to this house to everyone. NFTs in this case could represent the keys to this house that you can use to enter and invite or open the door for anyone you wanna hang out with.</p>
<p><img src="https://drive.tiny.cloud/1/hx6tw7woysd2p1n6n33jlalb4z1sj26rh50t3t5ncdlttwya/ddfeb31c-81f0-447c-a779-0b07723e1054" alt="" width="1920" height="1080" /></p>
<p>Once we start thinking about NFTs in that sense, the possibilities start being endless, things that would have so far only been realized as science fiction could become a reality. It is also evident that this would not be possible for any metaverse (including Mark Zuckerberg&rsquo;s) without the applications of NFTs and smart collectibles.</p>
<p>&nbsp;</p>
<h3><strong>Sources</strong>&nbsp;</h3>
<div class="reference-container">
<p>Fai, Andrew (2021): Smart Collectibles: Unlocking The Value of Non-Fungible Tokens (NFTs). TechRxiv. Preprint. <a href="https://doi.org/10.36227/techrxiv.14762769.v1">https://doi.org/10.36227/techrxiv.14762769.v1</a>&nbsp;</p>
<p>Geroni, Diego. "Nfts And Their Use Cases: A Complete Guide". <em>101 Blockchains</em>, 2021, <a href="https://101blockchains.com/nft-use-cases/">https://101blockchains.com/nft-use-cases/</a>.</p>
<p>"NFT Use Case - A Complete NFT Use Cases Walkthrough | [UPDATED]". <em>Readwrite</em>, 2021,&nbsp;</p>
<p><a href="https://readwrite.com/2021/09/25/nft-use-cases-a-complete-nft-use-case-walkthrough-updated/">https://readwrite.com/2021/09/25/nft-use-cases-a-complete-nft-use-case-walkthrough-updated/</a>.</p>
<p>"Nfts In Ticketing". <em>Medium</em>, 2021, <a href="https://medium.com/javarevisited/nfts-in-ticketing-ea861bda4a1">https://medium.com/javarevisited/nfts-in-ticketing-ea861bda4a1</a>.</p>
<p>"Web3 101: Part VI- Intro To Nfts | Unstoppable Domains". <em>Unstoppable Domains</em>, 2021, <a href="https://unstoppabledomains.com/blog/web3-101-part-vi--intro-to-nfts">https://unstoppabledomains.com/blog/web3-101-part-vi--intro-to-nfts</a>.</p>
</div>

Module 5: What are some of the use cases for NFTs

<h3><strong>Introduction</strong></h3>
<p>2021 may be remembered as the &ldquo;Year of the NFT&rdquo;, as these new tokens captured attention both inside and outside of the crypto space. Many individuals and institutions have been looking at the potential of NFTs, which may bring us to question whether mass adoption is just around the corner. However, we need to realize that, so far, the technology has been used mainly for speculation purposes and profit-making. We have heard a lot about this or that project skyrocketing or some collection selling for hundreds of thousands of dollars.&nbsp;</p>
<p>Throughout the previous lessons, we have tried to deliver to you a perspective that goes rather to the heart of why NFTs might change technicalities around issues like ownership. But what is actually missing for a larger social acceptance and governmental regulations? What are the big challenges and what should be done for this promising technology to meet its potentials? These are all questions that will be addressed in this module.&nbsp;</p>
<p>First of all, NFTs would not be enabled without the blockchain, one thing that you might note throughout this lesson is that many of the challenges of the space are related to the same hurdles standing in the face of blockchain technology.</p>
<p>&nbsp;</p>
<h3><strong>Challenges</strong></h3>
<p><img src="https://drive.tiny.cloud/1/hx6tw7woysd2p1n6n33jlalb4z1sj26rh50t3t5ncdlttwya/974c1d9b-124a-4af1-88a2-304560197259" alt="" width="1080" height="1920" /></p>
<h3><strong>Scalability&nbsp;</strong></h3>
<p>Problems related to scalability are not new for blockchain technology. In a nutshell, scalability is related to how many transactions a blockchain is able to process per second. With the growing popularity of blockchain technology, more and more people started using it for different purposes (such as transactions, creating new decentralized apps, and tokens). All of these processes require intense computational resources to be stored on the blockchain which overwhelms the network. Thus, we start seeing very high gas prices as users essentially outbid each other for blockspace, paid out as fees to &ldquo;miners&rdquo; or &ldquo;stakers&rdquo;. NFTs noticeably contribute to this network congestion as their popularity rises. In certain instances, the transaction fees to interact with or create an NFT may outweigh any convenience they provide.</p>
<p>&nbsp;</p>
<h3><strong>Storage</strong></h3>
<p>As explained in earlier modules, when buying an NFT, you are not buying the actual underlying data of the asset or piece of digital art connected to that NFT, but the proof of ownership over this data. Let&rsquo;s say you buy a piece of digital art, the NFT represents the ownership over the piece and this proof of ownership is stored on the blockchain network. However, the actual work is stored somewhere else.</p>
<p>You might wonder now why is the actual work not also stored on the blockchain? Storing data on the blockchain requires computation work, which has a cost (in cryptocurrency) to perform. Digital artwork, especially the ones with higher resolution, need relatively large storage space. Therefore, storing digital art on the blockchain will cost a lot of money and resources. Thus, the actual work is usually stored at centralized cloud services like google cloud or Amazon web services, or other peer-to-peer storage services like filecoin or IPFS (Interplanetary file system). The storage location is as important as the location from which the owner can view their NFT. Therefore, there is a risk that the piece will be stored somewhere that goes offline, which will cause the piece associated with your NFT to disappear. This would also have implications on one&rsquo;s trust in what they are buying when buying an NFT. As mentioned in a previous module, there is a trust concern when it comes to storing works and assets. So users need to trust that platforms, where their work is stored, will keep working and their assets will be safe.</p>
<p>&nbsp;</p>
<h3><strong>Interoperability &amp; Accessibility</strong></h3>
<p>Although the most used blockchain for minting and trading NFTs is Ethereum, other blockchains (such as Tezos or Solana) also can host NFTs. For example, the NFTs scene on the Solana blockchain has been booming at the time of writing this lesson. The question here becomes how could these NFTs interact with each other as they live on different blockchains? When two NFTs are minted on different blockchains they are effectively existing in different universes. This problem causes more inconvenience when one has multiple NFTs on different blockchains, as there is no way to manage assets in one single place. The ease of use of a particular blockchain also varies. For example, if one person is used to using a particular NFT marketplace that works with Ethereum, they might find it hard to use other blockchains to, say, buy an NFT ticket to a soccer game.&nbsp;</p>
<p>This problem will become more prominent once different &ldquo;metaverses&rdquo; come into being on different blockchains. As before, it becomes harder to use an asset that exists on the Ethereum blockchain in a metaverse that is built on the Solana network for example.</p>
<p>The fact that NFTs exist on different blockchains, raises yet another concern, which is that of accessibility of the NFTs space, in general, is limited. Although NFTs have been a hot topic in 2021, they are still not quite accessible by everyone. For instance, people who don&rsquo;t own any cryptocurrencies are excluded from reaping the benefits of NFTs. Actors in the crypto space ought to ask themselves how they could make NFTs more inclusive?</p>
<p>&nbsp;</p>
<h3><strong>Authenticity</strong></h3>
<p>One of the main problems that need to be addressed when it comes to NFTs is that of authenticity. Despite the fact that no two NFTs share the same metadata, imitation scams are prevalent in the NFTs world. Creating an NFT does not automatically guarantee its authenticity if it, for example, pretends to officially be from a project that it has nothing to do with. Luckily, with NFTs, there is the possibility of tracing back records and checking who was the creator of the NFT. Say, you buy a Picasso painting. In case this painting does not have a history of changing hands that trace back to Picasso or an established gallery, one might not be able to tell if this is an authentic painting or merely a precise forgery. In other cases, an NFT could use intellectual property without authorization, posing as the original creator. This has additional legal implications that will be discussed later in this module.&nbsp;</p>
<p>Although there are ways to prove the authenticity of an NFT, this is not always clear to each NFT collector. Therefore there is a need for platforms to check the authenticity of an NFT. However, this raises another problem of emerging third parties within the NFT space.&nbsp;</p>
<p>&nbsp;</p>
<h3><strong>Regulations and adoption&nbsp;</strong></h3>
<p>When we discussed how NFTs approach the digital ownership problem, we raised the question of copyrights and whether they are transferred with the token or not. This question has some legal uncertainties that need to be addressed. However, some marketplaces are being active when it comes to these issues and try to prevent IP infringements when it comes to the NFTs displayed. The issue requires further legal consideration in the aspect of recognizing NFTs as proof of ownership and the rights associated with it.</p>
<p>One could assume that governments around the world are aware of the rising interest in NFTs and wish to regulate them. Yet, standing in their way is the fact an NFT&rsquo;sr use and the values it can represent ranges between many different types of assets. Thus, it becomes hard to decide whether they should be regulated as securities, other fungible assets, or if they represent their own class of assets.</p>
<p>Although there is no consensus about cryptocurrency regulation, many governments are positioning themselves in this space. It is, however, unclear how cryptocurrency regulation applies to NFTs or if they will get their own share of regulations in the future as they are different by nature than other fungible tokens.</p>
<p>Another factor that needs to be considered when discussing the regulation of NFTs specifically and the crypto space generally is the fact that these tokens have a rather globalized cross-border nature. Therefore, it becomes harder for NFTs to serve as traditional proofs of ownership without a cross-border legal framework and collaborations. Let&rsquo;s consider theoretically that NFTs are recognized as proof of ownership of real estate in Germany and that you have an NFT of this type.&nbsp; Will this NFT be recognized as proof of ownership in other places around the world?&nbsp;</p>
<p>Considering the potential benefits that NFTs have concerning ownership, assets exchange, and day-to-day use case, one could argue that governments should think about creative ways to regulate NFTs without taking away from the value they add. However, this needs more effort than what has been done so far, not only for the legislator&rsquo;s side but also other actors like developers and experts in NFTs space.&nbsp;</p>
<p>&nbsp;</p>
<h3><strong>What needs to be done?</strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</h3>
<p>Logically, after discussing the previous technical and regulatory hurdles that stand in the face of NFTs adoption at a larger scale, one could ask the question &ldquo;what is next?&rdquo; What are the actions that need to be taken and what actors are involved? When it comes to these questions, one can never tell what will happen in the future, but we could discuss some of the points that we think need to be taken in order to tackle these issues.&nbsp;</p>
<p>First, it is important to know that the whole blockchain space grows rapidly. Therefore, one could imagine that innovation in this space will keep happening to tackle issues like scalability when it comes to the larger picture of blockchain technology. However, when talking about NFTs, questions of authenticity need to be addressed. Hopefully, in the near future, there will be platforms that check the authenticity of an NFT which would also prevent intellectual property infringement,&nbsp; helping the credibility of NFTs in general.</p>
<p>From the legislator&rsquo;s and policymaker&rsquo;s side, more understanding of the NFT space is needed to realize the potential and come up with legal frameworks that accept and recognize the use of NFTs as a proof of ownership. Also, part of the mission would be to draw the lines around how NFTs are treated legally and have clearer definitions of what rights an NFT owner is entitled to.</p>
<p>It is evident that a large portion of the population, even if they heard about NFTs, does not realize the potential behind them. For many, the idea of right-clicking and saving a picture from the web is an actual argument against the validity of NFTs. Therefore, there is no doubt that education around the topic is something very pressing that needs to happen on a larger scale.</p>
<p><img src="https://drive.tiny.cloud/1/hx6tw7woysd2p1n6n33jlalb4z1sj26rh50t3t5ncdlttwya/023cc84a-40da-4e07-b605-3a63d6fef9ab" alt="" width="1920" height="1080" /></p>
<p>&nbsp;</p>
<h3><strong>Conclusion&nbsp;</strong></h3>
<p>In this last module, we tried to highlight the main challenges standing in the face of a larger-scale adoption of NFTs. We also tried to cover the legislative and legal aspects surrounding NFTs. Towards the end, we discuss some of the things that need to be done by different actors (developers, policymakers, educators) in order for this promising technology to meet its potentials and grow beyond its speculative assets phase.</p>
<p>&nbsp;</p>
<h3><strong>Sources</strong></h3>
<div class="reference-container">
<p>Bine, Pascal, Elizabeth Robertson, and Simon Toms, "Regulatory Approaches To Nonfungible Tokens In The EU And UK | Insights | Skadden, Arps, Slate, Meagher &amp; Flom LLP", Skadden.Com, 2021 &lt;<a href="https://www.skadden.com/insights/publications/2021/06/regulatory-approaches-to-nonfungible-tokens">https://www.skadden.com/insights/publications/2021/06/regulatory-approaches-to-nonfungible-tokens</a>&gt; [Accessed 1 December 2021]</p>
<p>"Key U.S. Legal Considerations For Nfts", Jonesday.Com, 2021 &lt;<a href="https://www.jonesday.com/en/insights/2021/04/nfts-key-us-legal-considerations-for-an-emerging-asset-class">https://www.jonesday.com/en/insights/2021/04/nfts-key-us-legal-considerations-for-an-emerging-asset-class</a>&gt; [Accessed 1 December 2021]</p>
<p>Lee, Isabelle, "Nfts Will Eventually Be Used By The Government, Which Will Mark The 'Final Stage' Of Adoption For A Market That Just Had A Monster August, One Expert Says", Markets.Businessinsider.Com, 2021 &lt;<a href="https://markets.businessinsider.com/news/currencies/nft-opensea-government-adoption-altcoin-meme-stocks-mainstream-crypto-2021-9">https://markets.businessinsider.com/news/currencies/nft-opensea-government-adoption-altcoin-meme-stocks-mainstream-crypto-2021-9</a>&gt; [Accessed 1 December 2021]</p>
<p>Lee, Isabelle, "The NFT Space Is Booming Again, But Experts Say There Are 5 Challenges The Digital Collectibles Space Still Needs To Overcome", Markets.Businessinsider.Com, 2021 &lt;<a href="https://markets.businessinsider.com/news/currencies/nft-outlook-challenges-accessibility-storage-interoperability-mainstream-non-fungible-token-2021-8?utm_source=markets&amp;utm_medium=ingest">https://markets.businessinsider.com/news/currencies/nft-outlook-challenges-accessibility-storage-interoperability-mainstream-non-fungible-token-2021-8?utm_source=markets&amp;utm_medium=ingest</a>&gt; [Accessed 1 December 2021]</p>
<p>News, Zenger, "After The Hype: The Future For Nfts", Forbes, 2021 &lt;<a href="https://www.forbes.com/sites/zengernews/2021/05/30/after-the-hype-the-future-for-nfts/?sh=6770e7192146">https://www.forbes.com/sites/zengernews/2021/05/30/after-the-hype-the-future-for-nfts/?sh=6770e7192146</a>&gt; [Accessed 1 December 2021]</p>
<p>Salmon, John, leopold Van Gerlach, and Hogan Lovells, "Non-Fungible Tokens: Nfts And The Silence Of The EU Legislator | JD Supra", JD Supra, 2021 &lt;<a href="https://www.jdsupra.com/legalnews/non-fungible-tokens-nfts-and-the-2780299/">https://www.jdsupra.com/legalnews/non-fungible-tokens-nfts-and-the-2780299/</a>&gt; [Accessed 1 December 2021]</p>
<p>Silver, Nicole, "The History And Future Of Nfts", Forbes, 2021 &lt;<a href="https://www.forbes.com/sites/nicolesilver/2021/11/02/the-history-and-future-of-nfts/?sh=1c50db0d6a16">https://www.forbes.com/sites/nicolesilver/2021/11/02/the-history-and-future-of-nfts/?sh=1c50db0d6a16</a>&gt; [Accessed 1 December 2021]</p>
<p>"What Are The Legal Issues Around Nfts?", Osborneclarke.Com, 2021 &lt;<a href="https://www.osborneclarke.com/insights/what-are-legal-issues-around-nfts">https://www.osborneclarke.com/insights/what-are-legal-issues-around-nfts</a>&gt; [Accessed 1 December 2021]</p>
</div>

ZeFi

NFTs for Everyone

Overview

Course Description

Learning Outcomes

Course Content