3 ms·

I don't know what you mean by "physical legal contract", but yes, you need a license of some sort. That can be embedded on the Blockchain though, e.g. see: htt

I don't know what you mean by "physical legal contract", but yes, you need a license of some sort. That can be embedded on the Blockchain though, e.g. see: https://feralfile.com/docs/artist-collector-rights https://feralfile.com/docs/artist-collector-rights The NFT allows the art to have proven provenance, scarcity, transferability, composibility with DeFi projects (e.g. it can be fractionalized, insured, borrowed against, staked, etc., all on-chain). If you don't see value in that, I don't think you're looking very deeply at it.

arcticbull 6y ago
The legal right is not a chain concept and requires the cooperation and enforcement of your local government, and is something anyone can do at any time. And does implicitly and explicitly when they create art. But we're not talking about art when we talk about NFTs, we're talking about certificates of authenticity of art issued by whoever which have no real-world connection. The provable scarcity is funny, each is unique so each one has a scarcity of 1, but the concept it represents can just be duplicated at will by the issuer or literally anyone else. Say you bought the beeple. Beeple didn't give up the right to sell the exact same thing to someone else, and remains perpetually able to debase your investment at their sole discretion. The scarcity argument holds zero water when compared to for instance Bitcoin, which has a hard-coded quantity. Not that, you know, exchanges can't oversell coins if they wanted to, so long as there's no systemic bank run. Scarcity notwithstanding, the idea that you can fractionalize, insure and borrow against NFTs in an automated, trustless and decentralized way is pretty weak - to put it mildly. Since each token is unique, there's no consistent bid-ask for you to determine its worth. It's a super duper low liquidity market, and its going to get lower liquidity on a per-NFT basis the more NFTs exist. All you know is what the last person paid, whenever they paid for it - years ago even. Just because someone at peak mania bought a beeple or whatever for $69 million dollars today doesn't mean you can borrow $10 against it a few years from now. If they tried to resell that NFT today, I can't imagine they'd get more than a few thousand already haha. That's exactly why art is used for money laundering. That's exactly why NFTs are used for money laundering.
- berberous 6y ago
  “ Say you bought the beeple. Beeple didn't give up the right to sell the exact same thing to someone else, and remains perpetually able to debase your investment at their sole discretion.” I continue to be amazed you don’t see that this also applies to real art, especially now that many artists are using digital processes or photographic ones. The artist says a series will be limited — that’s all. That has weight in the real world and in NFTs because artists have reputations; in both instances, you are trusting them not to debase their work by printing more.
  - arcticbull 6y ago
    NFTs aren't art they're certificates of authenticity. The art can be infinitely duplicated with cmd-C cmd-V. However, yes, this is a characteristic of prints. Which is why few insure them, nobody fractionalizes them, very few lend against them and certainly not in an automated no questions asked way. Because there's no way to ascertain their value. Which is also why they're used for money laundering. Money laundering, except digital, isn't a great slogan.

arcticbull 6y ago

The legal right is not a chain concept and requires the cooperation and enforcement of your local government, and is something anyone can do at any time. And does implicitly and explicitly when they create art. But we're not talking about art when we talk about NFTs, we're talking about certificates of authenticity of art issued by whoever which have no real-world connection. The provable scarcity is funny, each is unique so each one has a scarcity of 1, but the concept it represents can just be duplicated at will by the issuer or literally anyone else. Say you bought the beeple. Beeple didn't give up the right to sell the exact same thing to someone else, and remains perpetually able to debase your investment at their sole discretion. The scarcity argument holds zero water when compared to for instance Bitcoin, which has a hard-coded quantity. Not that, you know, exchanges can't oversell coins if they wanted to, so long as there's no systemic bank run. Scarcity notwithstanding, the idea that you can fractionalize, insure and borrow against NFTs in an automated, trustless and decentralized way is pretty weak - to put it mildly. Since each token is unique, there's no consistent bid-ask for you to determine its worth. It's a super duper low liquidity market, and its going to get lower liquidity on a per-NFT basis the more NFTs exist. All you know is what the last person paid, whenever they paid for it - years ago even. Just because someone at peak mania bought a beeple or whatever for $69 million dollars today doesn't mean you can borrow $10 against it a few years from now. If they tried to resell that NFT today, I can't imagine they'd get more than a few thousand already haha. That's exactly why art is used for money laundering. That's exactly why NFTs are used for money laundering.

berberous 6y ago
“ Say you bought the beeple. Beeple didn't give up the right to sell the exact same thing to someone else, and remains perpetually able to debase your investment at their sole discretion.” I continue to be amazed you don’t see that this also applies to real art, especially now that many artists are using digital processes or photographic ones. The artist says a series will be limited — that’s all. That has weight in the real world and in NFTs because artists have reputations; in both instances, you are trusting them not to debase their work by printing more.
- arcticbull 6y ago
  NFTs aren't art they're certificates of authenticity. The art can be infinitely duplicated with cmd-C cmd-V. However, yes, this is a characteristic of prints. Which is why few insure them, nobody fractionalizes them, very few lend against them and certainly not in an automated no questions asked way. Because there's no way to ascertain their value. Which is also why they're used for money laundering. Money laundering, except digital, isn't a great slogan.