At first glance, you might think so, but the point behind NFTs is their completely decentralized nature, so that no one can interfere with them. It also means that you don’t have any (legal) insurance that you would have with a normal purchase contract, because everything is recorded in the blockchain used by the NFT.

Note that the vast majority of current NFTs are not proof of ownership at all, but merely a receipt of the purchase from the NFT, not the item you intend to purchase. NFT buys an image and thinks you own the image, but that’s not the case at all: it’s still owned by the artist. NFTs have the character of a Brooklyn Bridge scam right now: https://en.wikipedia.org/wiki/George_C._Parker

You only own the piece of paper that a stranger sold you that says you own the bridge, and nothing else. The stranger escapes with your money, leaving you the choice of whether to sell that piece of paper to a new victim. That’s what NFTs are today.

Going over this: Even if you can convert NFTs into a real, complete document, we’ll go back to how to validate this.

Imagine that you buy a home through NFT and move in. Next month, your wallet will be hacked and you will lose your NFT. A Russian kid of pirates will kick you out because that kid owns your house now.

There is nothing you can do about it, because even if the law proves you right, you can never get your NFT back! After all, this is how the blockchain works. Then you’ll say, but yeah, everyone knows the house is mine and that kid can never actually kick me out, but then you have to ask yourself: Why did you do anything with NFTs in the first place, because it’s clearly not worth it if it doesn’t work for you?

You can extend the same everywhere. Take Ubisoft for example: NFTs are worth absolutely nothing outside of Breakpoint. You can’t use them in another game, and Ubisoft could shut down the servers today and tomorrow and they would lose all their usefulness (if they ever had any use, which is questionable). So what is the added value of being an NFT over the regular cosmetic MTX that thousands of games have been offering for years? zero.

Mining NFTs is also a problem. You can now mint whatever you want on the blockchain you want. Then the NFT is placed on it and can no longer be removed. Suppose you mint an NFT from the Mona Lisa – which is possible – and sell it. Nobody can do anything about it. Then the buyer says “I own the Mona Lisa,” which, of course, is not at all true, but you went with his money long ago. What now? You can’t remove the NFT, you can just blacklist it in different markets, but they have to keep up. You might say, first check if you are allowed to do such an NFT, but who should do that? How do you verify this? And if you do something like that, you undermine why NFTs exist again.

The concept of NFT is an intellectual exercise that has no practical value. It’s an idealistic concept that doesn’t actually work the way people think. Even worse, the vast majority of people don’t care about the concept per se and only see it as a way to “make a quick buck”. Unfortunately, this group often screams the loudest about the purported “benefits” of NFTs, because if they don’t, they won’t get their “investment back”. Meanwhile, the money makers are laughing, because they got the money from these “investors” and ran away

[Reactie gewijzigd door Khrome op 21 december 2021 13:25]