The whole idea that makes NFT new is a decentralized ledger in the form of a blockchain. We’ve had digital ownership in the form of skins in games for years. What NFTs promise (but will not deliver) is that properties are managed in a decentralized manner without the need to trust a party.

This design is inherently flawed. Anyone with access to the private key owns the parent NFT. This means that if my private key is stolen and the hacker deletes my copy, nothing will change in the blockchain. So is it theft? NFT still refers to the same numeric property. Only private key access has changed. However, no one keeps track of who owns any private key in this paymentless decentralized system. How will you prove that this key was yours and that it was indeed stolen and not voluntarily handed over? No one can retrieve or block the hacker’s item. The system knows only private keys.

Legally, the whole idea is worthless. If I have an NFT that secures my home ownership, what happens to the house if I lose the private key? The blockchain is always right, the house does not belong to anyone now, or at least no one has access to the equity of the house. The only solution left is to ignore the blockchain and keep a central database of who owns the NFT, but we are already doing so with the ownership of the house itself. What will we win then?

There is a reason to regulate the physical title deed by law and notary public. When my crazy grandmother gave the friendly home care worker an NFT of the house, the house was gone. A notary should not agree to this.

For art, which is a digital good, you have the same problem. You do not become the exclusive owner of the artwork. You cannot file copyright claims because you have the private key that points to a digital piece of art. And if this becomes law, you’ll run into the same problem there. Can artwork never be shown again if the owner loses the private key? Then the owner simply runs to court to apply for the traditional title.

NFTs don’t solve anything and create more problems.

[Reactie gewijzigd door NoInput op 3 januari 2022 14:33]