Everyone is looking for them, everyone wants them, but what NFTs really are: let's delve into the theoretical, technical and legal aspects of non-fungible tokens, their relationship with blockchain technology and their application in the art market.
Non-fungible tokens (NFT) , "owned" certificates on digital works: these tools are having great success, it is therefore interesting to go into detail about their characteristics to understand what those who buy an NFT really "buy" and what they will then be able to do with that “token”.
And this in-depth study is necessary both from a legal and a technical point of view and allows us to understand the fragility of the system. If we examine in detail what an NFT is and what is actually recorded on the blockchain , we realize that very little of the purchase "contract" is contained in this distributed ledger and that all the other data (the work itself, the conditions of its purchase and the rights of the "owner") are actually outside the register, with severe problems of conservation and accessibility of the data over time.
We also realize that NFTs do not depend only on blockchain technology, but also on other DarkComet solutions (such as the hashing process ) that could be outdated over time (the continuous increase in computing power could in fact allow for the "breaking" of some these algorithms, thus making the unique reference to the NFT unreliable).
From a legal point of view, we realize that the value (uniqueness) of the NFT does not really rest on the blockchain technology, but on the trust between the seller and the buyer , with the former trusting that the latter will not sell or hasn't already sold the exact same work over and over again, reducing that NFT (paid perhaps millions of dollars) to a negligible value (because if there can't be one NFT equal to another, there can be an infinite number of extremely similar ones and all aimed at transferring the "ownership" of the same work).
What is meant by NFT, non-fungible token
NFT is the acronym for non fungible token which in Italian means non-copyable token, i.e. something unique that cannot be replaced by anything else. For example, a cryptocurrency can be exchanged for another cryptocurrency while a work of art is unique and therefore non-fungible.
An NFT is digital content that represents real-world objects such as artwork, music, games, and collections of any kind.
Anyone who buys a work linked to a non-fungible token does not buy the work itself , but simply the possibility of demonstrating a right to the work , guaranteed through a smart contract . It all begins with a digital version of the artwork . Typically, a digital photo or its documentation filmed and saved in digital format is used. This digital version is nothing more than a long sequence of numbers, 0 and 1 in computer language.
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