wave of time non-tradable token (NFT) – in Portuguese, unchangeable coin – but do you know what it is and what it is for? And what are the associated risks and benefits? If you don’t know I’ll explain a bit here and explain what it is legally as well as how it relates to the “metaverse”.

First, it’s worth noting that NFTs are a digital representation of something that can be tangible or intangible (which we can or cannot touch), but as the name suggests they are unique and cannot be replaced by anything else.

Because it is a digital representation of something, it is possible to divide it into tens, thousands, or millions of pieces. It could be a digital representation of a painting by Pablo Picasso. Original lyrics of a song by Mamonas Assassinas or an animation, a photograph, or some of these works, or even some of the rights in them (rights to get paid for or related to these works).

It can also be purely digital art, stored in a digital wallet and liked by its owner, or published on their own website or anywhere they want, as are NFT The little pony I bought, so I own the economic rights, I don’t own the copyrights. Economic rights are the right to use the image, while the moral right is the right to say that the creator of the work is always creative.

Because they are impossible to exchange, they are, say, “collectible” things, and because they are collectible they have a monetary value and can therefore be resold, rented, bartered, and donated.

But how do they become invincible?

Tokens are digital representations linked to the blockchain, that is, a type of cryptocurrency. there are several chains blockchainLike Ethereum, Tezos, Chain and others that can be used to create NFTs. The most widely used, Ethereum.

How does creating an NFT work?

It’s all encryption. In a very simplified way, when an immutable token is created, it gets a code inside the blockchain used, for example 0000232323. Mandatory is the next block in the chain (something that comes next and doesn’t have to). one NFT) will be 0000232324 and the other 0000232325 and so on, which avoids all sorts of cheating because it’s impossible to put something before or after. And inside this token is data that refers to the thing purchased: the name of the creator, the date of creation, the name of the work, the value and other information placed in the coin by the creator.

Problems with NFTs

Like almost everything created and developed through the blockchain network, NFTs are not regulated or overseen by any organization or even governments. The user buys and uses at his own risk. It is highly speculative as price and value can fluctuate without any logical or rational criteria.

I created an NFT called love dogs It sells for $20 but I can claim a million dollars. What if someone buys it? Is there a problem? None. I put the price I want and it’s better for me if someone buys it but after it’s sold I can’t use it anymore and create another same or similar.

Many people buy these digital assets as a high-risk form of investment and spend money on something that could be “a total scam” but also a “main move” if that asset gains in value.

An example of this was the NFT depiction of the first tweet posted by Twitter founder Jack Dorsey, which sold for $2.9 million and is currently offered for $40 million, but didn’t even reach $10,000 in bids.

Another type of NFT is weapons and other items purchased in online games. Various equipment can be purchased to increase the performance of the player or team in electronic games and, if available, can be sold to anyone who wants it in the future. Not many people remember, but there was a case in the game. second life where the avatar was sold for $1 million. Many people play for more than 20 hours to value and sell the avatar.

game lately F1 DeltaTime, Based on NFTs, abruptly taken off, car, driver, tire etc. left many people behind. hand, as the purchased items are no longer useful and cannot be sold or reused.

Let it be clear: are speculative products. The creator or owner can sell it at any price. Also, there are risks associated with its creation, as famous works of art or well-known products or even personalities cannot be used to create an NFT without permission from the rightsholder.

This means, for example, that I cannot create an NFT of a Nike collection with all Michael Jordan shoes and offer it for sale. I am not authorized to use the industrial design of sneakers and, for example, I am not authorized to use the Nike brand or the brand associated with Michael Jordan.

I can’t create one either. Neymar’s NFT He wears different jerseys of the football teams he plays for because there are two rights. Neymar’s personality rights are protected in Articles 11 and 12 of the Civil Code. And in the signs of the football teams, the art of World War II. item. 130 Industrial Property Law determines that only those who own the rights to the mark can license its use. In other words, it is possible to create these NFTs, but only with authorization.

However, pursuant to the artwork, I can develop an NFT of a no longer copyrighted artwork, as long as the author is alive and with protection for 70 years from January 1 of the year following the creator’s death. 41 copyright law. That is, a painting by Van Gogh, a statue of Aleijadinho, or Mona Lisathey may be an NFT, but then it’s a matter of knowing who will want to buy.

What if you buy an NFT that Nike has not authorized to use its brand and the company files a lawsuit demanding that all such digital representations of its products be banned from remarketing and removed from trading platforms? These products are difficult to dispose of because they can be archived anywhere, but you will not be able to sell them in the future, or you risk having to pay fines or compensation if you do. Is it worth the risk? Probably not.

Now, if I buy an NFT of a digital artwork that has been licensed with the permission of its creator, I am confident that that work is mine and that there is no risk of it being taken out of circulation and that I will not buy it if I sell it. I take the risk of compensating the buyer for selling an unlicensed work. Before purchasing an NFT, check all the risks involved and whether it is worth the investment. If it’s worth it, “send bullets”!

*****
Rofis Elias Filho’s photo.columnist TecMundo, a geek and lawyer who has been passionate about technology since he was little. In 1994, he had his home internet on the street for the first time and specialized in Computer Law in Brazil and Portugal. Today, he is a professor of the same subject at various institutions as the executive coordinator of the postgraduate course at ESA/SP. He is a partner of Elias Filho Advogados, who works for various technology companies in Brazil and abroad. For more tips, follow on social media: @eliasfilhoadv.

Source: Tec Mundo

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