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Wikipedia

Non-fungible token

November 14, 2023

"NFT" redirects here. For other uses, see NFT (disambiguation).

A non-fungible token (NFT) is a unique digital identifier that is recorded on a blockchain, and is used to certify ownership and authenticity. It cannot be copied, substituted, or subdivided.[1] The ownership of an NFT is recorded in the blockchain and can be transferred by the owner, allowing NFTs to be sold and traded. NFTs can be created by anybody, and require few or no coding skills to create. NFTs typically contain references to digital files such as artworks, photos, videos, and audio. Because NFTs are uniquely identifiable, they differ from cryptocurrencies, which are fungible.

Illustration of a non-fungible token generated by a smart contract (a program designed to automatically execute contract terms)

Proponents claim that NFTs provide a public certificate of authenticity or proof of ownership, but the legal rights conveyed by an NFT can be uncertain. The ownership of an NFT as defined by the blockchain has no inherent legal meaning and does not necessarily grant copyright, intellectual property rights, or other legal rights over its associated digital file. An NFT does not restrict the sharing or copying of its associated digital file and does not prevent the creation of NFTs that reference identical files.

The trading of NFTs in 2021 increased to $17 billion over just $82 million in the previous year.[2] NFTs have been used as speculative investments and they have drawn criticism for the energy cost and carbon footprint associated with some types of blockchain, as well as their use in art scams.[3] The NFT market has also been compared to an economic bubble or a Ponzi scheme.[4] During their peak, the three biggest NFT platforms were Ethereum, Solana, and Cardano.[5] In 2022, the NFT market collapsed; a May 2022 estimate was that the number of sales was down over 90% compared to 2021.[6] By September 2023, one report claimed that over 95% of NFT collections had zero monetary value.[7][8]

Characteristics

An NFT is a data file, stored on a type of digital ledger called a blockchain, which can be sold and traded.[9] The NFT can be associated with a particular asset – digital or physical – such as an image, art, music, or recording of a sports event.[10] It may confer licensing rights to use the asset for a specified purpose.[11] An NFT (and, if applicable, the associated license to use, copy, or display the underlying asset) can be traded and sold on digital markets.[12] However, the extralegal nature of NFT trading usually results in an informal exchange of ownership over the asset that has no legal basis for enforcement,[13] and so often confers little more than use as a status symbol.[14]

NFTs function like cryptographic tokens, but unlike cryptocurrencies, NFTs are not usually mutually interchangeable, so they are not fungible.[a] A non-fungible token contains data links, for example which point to details about where the associated art is stored, that can be affected by link rot.[16]

Copyright

 
A diagram showing the right to own a non-fungible token and linked file. In most cases, it is heavily dependent on the token's smart contract.

An NFT solely represents a proof of ownership of a blockchain record and does not necessarily imply that the owner possesses intellectual property rights to the digital asset the NFT purports to represent.[17][18][19] Someone may sell an NFT that represents their work, but the buyer will not necessarily receive copyright to that work, and the seller may not be prohibited from creating additional NFT copies of the same work.[20][21] According to legal scholar Rebecca Tushnet, "In one sense, the purchaser acquires whatever the art world thinks they have acquired. They definitely do not own the copyright to the underlying work unless it is explicitly transferred."[22]

Certain NFT projects, such as Bored Apes, explicitly assign intellectual property rights of individual images to their respective owners.[23] The NFT collection CryptoPunks was a project that initially prohibited owners of its NFTs from using the associated digital artwork for commercial use, but later allowed such use upon acquisition by the collection's parent company.[24]

History

The first known "NFT", Quantum,[25] was created by Kevin McCoy and Anil Dash in May 2014. It consists of a video clip made by McCoy's wife, Jennifer. McCoy registered the video on the Namecoin blockchain and sold it to Dash for $4, during a live presentation for the Seven on Seven conferences at the New Museum in New York City. McCoy and Dash referred to the technology as "monetized graphics".[26] This explicitly linked a non-fungible, tradable blockchain marker to a work of art, via on-chain metadata (enabled by Namecoin).[27]

In October 2015, the first NFT project, Etheria, was launched and demonstrated at DEVCON 1 in London, Ethereum's first developer conference, three months after the launch of the Ethereum blockchain. Most of Etheria's 457 purchasable and tradable hexagonal tiles went unsold for more than five years until March 13, 2021, when renewed interest in NFTs sparked a buying frenzy. Within 24 hours, all tiles of the current version and a prior version, each hardcoded to 1 ETH (US$0.43 at the time of launch), were sold for a total of US$1.4 million.[28]

The term "NFT" only achieved wider usage with the ERC-721 standard, first proposed in 2017 via the Ethereum GitHub, following the launch of various NFT projects that year.[29][30] The standard coincided with the launch of several NFT projects, including Curio Cards, CryptoPunks (a project to trade unique cartoon characters, released by the American studio Larva Labs on the Ethereum blockchain),[31][32] and rare Pepe trading cards.[29]

The 2017 online game CryptoKitties was made profitable by selling tradable cat NFTs, and its success brought public attention to NFTs.[33]

The NFT market experienced rapid growth during 2020, with its value tripling to US$250 million.[34] In the first three months of 2021, more than US$200 million were spent on NFTs.[35]

In the early months of 2021, interest in NFTs increased after a number of high-profile sales and art auctions.[36]

In May 2022, The Wall Street Journal reported that the NFT market was "collapsing". Daily sales of NFT tokens had declined 92% from September 2021, and the number of active wallets in the NFT market fell 88% from November 2021. While rising interest rates had impacted risky bets across the financial markets, the Journal said "NFTs are among the most speculative."[6]

A September 2023 report from cryptocurrency gambling website dappGambl claimed 95% of NFTs had fallen to zero monetary value.[7][8]

Uses

Commonly associated files

NFTs have been used to exchange digital tokens that link to a digital file asset. Ownership of an NFT is often associated with a license to use such a linked digital asset but generally does not confer the copyright to the buyer. Some agreements only grant a license for personal, non-commercial use, while other licenses also allow commercial use of the underlying digital asset.[37] This kind of decentralized intellectual copyright poses an alternative to established forms of safeguarding copyright controlled by state institutions and middlemen within the respective industry.[38]

Digital art

See also: List of most expensive non-fungible tokens

Digital art is a common use case for NFTs.[39] High-profile auctions of NFTs linked to digital art have received considerable public attention; the first such major house auction took place at Christie's in 2021.[40] The work entitled Merge by artist Pak was the most expensive NFT, with an auction price of US$91.8 million[41] and Everydays: the First 5000 Days, by artist Mike Winkelmann (known professionally as Beeple) the second most expensive at US$69.3 million in 2021.[12][42]

 
Some digital art NFTs, like these pixel art characters, are examples of generative art.

Some NFT collections, including Bored Apes, EtherRocks, and CryptoPunks are examples of generative art, where many different images are created by assembling a selection of simple picture components in different combinations.[43]

In March 2021, the blockchain company Injective Protocol bought a $95,000 original screen print entitled Morons (White) from English graffiti artist Banksy, and filmed somebody burning it with a cigarette lighter. They uploaded (known as "minting" in the NFT scene) and sold the video as an NFT.[44][45] The person who destroyed the artwork, who called themselves "Burnt Banksy", described the act as a way to transfer a physical work of art to the NFT space.[45]

American curator and art historian Tina Rivers Ryan, who specializes in digital works, said that art museums are widely not convinced that NFTs have "lasting cultural relevance."[46] Ryan compares NFTs to the net art fad before the dot-com bubble.[47][48] In July 2022, after the controversial sale of Michelangelo's Doni Tondo in Italy, the sale of NFT reproductions of famous artworks was prohibited in Italy. Given the complexity and lack of regulation of the matter, the Ministry of Culture of Italy temporarily requested that its institutions refrain from signing contracts involving NFTs.[49]

No centralized means of authentication exists to prevent stolen and counterfeit digital works from being sold as NFTs, although auction houses like Sotheby's, Christie's, and various museums and galleries worldwide started collaborations and partnerships with digital artists such as Refik Anadol, Dangiuz and Sarah Zucker.

NFTs associated with digital artworks could be sold and bought via NFT platforms. OpenSea, launched in 2017, was one of the first marketplaces to host various types of NFTs.[50][51] In July 2019, the National Basketball Association, the NBA Players Association and Dapper Labs, the creator of CryptoKitties, started a joint venture NBA Top Shot for basketball fans that let users buy NFTs of historic moments in basketball.[52][53] In 2020, Rarible was found, allowing multiple assets. In 2021, Rarible and Adobe formed a partnership to simplify the verification and security of metadata for digital content, including NFTs.[50] In 2021, a cryptocurrency exchange Binance, launched its NFT marketplace.[54] In 2022, eToro Art by eToro was founded, focusing on supporting NFT collections and emerging creators.[50][55]

Sotheby's and Christie's auction houses showcase artworks associated with the respective NFTs both in virtual galleries and physical screens, monitors, and TVs.[56][57][58]

Mars House, an architectural NFT created in May 2020 by artist Krista Kim, sold in 2021 for 288 Ether (ETH) — at that time equivalent to US$524,558.[59]

Games

Main article: Blockchain game

NFTs can represent in-game assets. Some commentators describe these as being controlled "by the user" instead of the game developer[60] if they can be traded on third-party marketplaces without permission from the game developer. Their reception from game developers, though, has been generally mixed, with some like Ubisoft embracing the technology but Valve and Microsoft formally prohibiting them.[61]

  • CryptoKitties was an early successful blockchain online game in which players adopt and trade virtual cats. The monetization of NFTs within the game raised a $12.5 million investment, with some kitties selling for over $100,000 each.[33][62][63][64] Following its success, CryptoKitties was added to the ERC-721 standard, which was created in January 2018 (and finalized in June).[65][29]
  • In October 2021, Valve Corporation banned applications from their Steam platform if those applications use blockchain technology or NFTs to exchange value or game artifacts.[66]
  • In December 2021, Ubisoft announced Ubisoft Quartz, "an NFT initiative which allows people to buy artificially scarce digital items using cryptocurrency". The announcement was heavily criticized by audiences, with the Quartz announcement video attaining a dislike ratio of 96% on YouTube. Ubisoft subsequently unlisted the video from YouTube.[67][68] The announcement was also criticized internally by Ubisoft developers.[69][70][71] The Game Developers Conference's 2022 annual report stated that 70 percent of developers surveyed said their studios had no interest in integrating NFTs or cryptocurrency into their games.[72][73]
  • Some luxury brands minted NFTs for online video game cosmetics.[74] In November 2021, investment firm Morgan Stanley published a note claiming that this could become a US$56 billion market by 2030.[75]
  • In July 2022, Mojang Studios announced that NFTs would not be permitted in Minecraft, saying that they went against the game's "values of creative inclusion and playing together".[76]

Music and film

NFTs have been proposed for use within the film-industry as a way to tokenize movie-scenes and sell them as collectibles in the form of NFTs.[77] Artists involved in the entertainment-industry can seek royalties through NFTs.[78] So far, NFTs have often been used in both the music- as well as the film-industry.

  • In May 2018, 20th Century Fox partnered with Atom Tickets and released limited-edition Deadpool 2 digital posters to promote the film. They were available from OpenSea and the GFT exchange.[79]
  • In March 2021 Adam Benzine's 2015 documentary Claude Lanzmann: Spectres of the Shoah became the first motion picture and documentary film to be auctioned as an NFT.[80]
  • Other examples of NFTs being used in the film-industry include a collection of NFT-artworks for Godzilla vs. Kong,[81] the release of both Kevin Smith's horror-movie KillRoy Was Here , and the 2021 film Zero Contact as NFTs in 2021.[82]
  • In April 2021, an NFT was released for the score of the movie Triumph, composed by Gregg Leonard.[83]
  • In November 2021, film director Quentin Tarantino released seven NFTs based on uncut scenes of Pulp Fiction. Miramax subsequently filed a lawsuit claiming that their film rights were violated and that the original 1993 contract with Tarantino gave them the right to mint NFTs in relation to Pulp Fiction.[84]
  • In August 2022 Muse released album Will of the People as 1,000 NFTs and it became the first album for which NFT sales would qualify for the UK and Australian charts.[85][86]

By February 2021 NFTs accounted for US$25 million of revenue generated through the sale of artwork and songs as NFTs.[87] On February 28, 2021, electronic dance musician 3LAU sold a collection of 33 NFTs for a total of US$11.7 million to commemorate the three-year anniversary of his Ultraviolet album.[88][89] On March 3, 2021, an NFT was made to promote the Kings of Leon album When You See Yourself.[90][91][92] Other musicians who have used NFTs include American rapper Lil Pump,[93][94][95] Grimes,[96] visual artist Shepard Fairey in collaboration with record producer Mike Dean,[97] and rapper Eminem.[98]

A paper presented at the 40th International Conference on Information Systems in Munich in 2019 suggested using NFTs as tickets for different types of events.[99] This would enable organizers of the respective events or artists performing there to receive royalties on the resale of each ticket.[100]

Other associated files

  • A number of internet memes have been associated with NFTs, which were minted and sold by their creators or by their subjects.[101] Examples include Doge, an image of a Shiba Inu dog,[102] as well as Charlie Bit My Finger,[103] Nyan Cat[104][105] and Disaster Girl.[106]
  • Some virtual worlds, often marketed as metaverses, have incorporated NFTs as a means of trading virtual items and virtual real estate.[107]
  • Some pornographic works have been sold as NFTs, though hostility from NFT marketplaces towards pornographic material has presented significant drawbacks for creators.[108][109] By using NFTs people engaged in this area of the entertainment-industry are able to publish their works without third-party platforms being able to delete them.[110]
  • The first credited political protest NFT ("Destruction of Nazi Monument Symbolizing Contemporary Lithuania") was a video filmed by Professor Stanislovas Tomas on April 8, 2019, and minted on March 29, 2021. In the video, Tomas uses a sledgehammer to destroy a state-sponsored Lithuanian plaque located on the Lithuanian Academy of Sciences honoring Nazi war criminal Jonas Noreika.[111]
  • In 2020, CryptoKitties developer Dapper Labs released the NBA TopShot project, which allowed the purchase of NFTs linked to basketball highlights.[112] The project was built on top of the Flow blockchain.[113]
  • In March 2021 an NFT of Twitter founder Jack Dorsey's first-ever tweet sold for $2.9 million. The same NFT was listed for sale in 2022 at $48 million, but only achieved a top bid of $280.[114]
  • On December 15, 2022, Donald Trump, former president of the United States, announced a line of NFTs featuring images of himself for $99 each.[115] It was reported that he made between $100,001 and $1 million from the scheme.[116]

Use cases of NFTs in science and medicine

NFTs have been proposed for purposes related to scientific and medical purposes.[117] Suggestions include turning patient data into NFTs,[118] tracking supply chains[119] and minting patents as NFTs.[120]

The monetary aspect of the sale of NFTs has been used by academic institutions to finance research projects.

 
George M. Church sold NFTs of an "artistic representation" of his genome and likeness in 2022.
  • The University of California, Berkeley announced in May 2021 its intention to auction NFTs of two patents of inventions for which the creators had received a Nobel Prize: the patents for CRISPR gene editing and cancer immunotherapy. The university would however retain ownership of the patents.[121][122] 85% of funds gathered through the sale of the collection were to be used to finance research.[123][124] The collection included handwritten notices and faxes by James Allison and was named The Fourth Pillar. It sold in June 2022 for 22 Ether, about US$54,000 at the time.[125]
  • George Church, a US geneticist, announced his intention to sell his DNA via NFTs and use the profits to finance research conducted by Nebula Genomics. In June 2022, 20 NFTs with his likeness were published instead of the originally planned NFTs of his DNA due to the market conditions at the time.[117] Despite mixed reactions, the project is considered to be part of an effort to use the genetic data of 15,000 individuals to support genetic research. By using NFTs the project wants to ensure that the users submitting their genetic data are able to receive direct payment for their contributions.[117][126] Several other companies have been involved in similar and often criticized efforts to use blockchain-based genetic data in order to guarantee users more control over their data and enable them to receive direct financial compensation whenever their data is being sold.[125]
  • Molecule Protocol, a project based in Switzerland, is trying to use NFTs to digitize the intellectual copyright of individual scientists and research teams to finance research.[127] The project's whitepaper explains the aim is to represent the copyright of scientific papers as NFTs and enable their trade between researchers and investors on a future marketplace.[128] The project was able to raise US$12 million in seed money in July 2022.[127] A similar approach has been announced by RMDS Lab.[129]

Speculation

NFTs representing digital collectables and artworks are a speculative asset.[130] The NFT buying surge was called an economic bubble by experts, who also compared it to the Dot-com bubble.[131][132] In March 2021 Mike Winkelmann called NFTs an "irrational exuberance bubble".[133] By mid-April 2021, demand subsided, causing prices to fall significantly.[134] Financial theorist William J. Bernstein compared the NFT market to 17th-century tulip mania, saying any speculative bubble requires a technological advance for people to "get excited about", with part of that enthusiasm coming from the extreme predictions being made about the product.[135] For regulatory policymakers, NFTs have exacerbated challenges such as speculation, fraud, and high volatility.[136]

Money laundering

NFTs, as with other blockchain securities and with traditional art sales, can potentially be used for money laundering.[137] NFTs can be used for wash trading by creating several wallets for one individual, generating several fictitious sales and consequently selling the respective NFT to a third party.[138] According to a report by Chainalysis these types of wash trades are becoming popular among money launderers because of the largely anonymous nature of transactions on NFT marketplaces.[139][140][141] Looksrare, created in early 2022, came to be known for the large sums generated through the sale of NFTs in its earliest days, amounting to US$400,000,000 a day. These large sums were generated in large part through wash trading.[141] The Royal United Services Institute said that any risks in relation to money laundering through NFTs could be mitigated through the use of "KYC best practices, strong cyber security measures and a stolen art registry (...) without restricting the growth of this new market".[137]

Auction platforms for NFTs may face regulatory pressure to comply with anti-money laundering legislation. Gou Wenjun, the director of a monitoring centre for the People's Bank of China, said that NFTs could "easily become money-laundering tools". He pointed to unlawful exploitation of cryptographic technologies and said that illicit actors often presented themselves as innovators in financial technology.[142]

A 2022 study from the United States Treasury assessed that there was "some evidence of money laundering risk in the high-value art market", including through "the emerging digital art market, such as the use of non-fungible tokens (NFTs)".[143] The study considered how NFT transactions may be a simpler option for laundering money through art by avoiding the transportation or insurance complications in trading physical art. Several NFT exchanges were labeled as virtual asset service providers that may be subject to Financial Crimes Enforcement Network regulations.[144] In March 2022, two people were charged for the execution of a million-dollar NFT scheme through wire fraud.[145]

The European Commission announced in July 2022 that it was planning to draw up regulations to combat money laundering by 2024.[146][147]

Other uses

  • In 2019, Nike patented a system called CryptoKicks that would use NFTs to verify the authenticity of its physical products and would give a virtual version of the shoe to the customer.[148]
  • Certain NFT releases have also added exclusivity to the NFT utility including access to private online clubs.[149][150]

Standards in blockchains

Several blockchains have added support for NFTs since Ethereum created its ERC-721 standard.[151][152]

ERC-721 is an "inheritable" smart contract standard, which means that developers can create contracts by copying from a reference implementation. ERC-721 provides core methods that allow tracking the owner of a unique identifier, as well as a way for the owner to transfer the asset to others.[151] Another standard, ERC-1155, offers "semi-fungibility" whereby a token represents a class of interchangeable assets.[153]

Issues and criticisms

Unenforceability of copyright

 
As an image on the web, the digital art linked to a non-fungible token may be right-clicked and saved like any other picture file.

Because the contents of NFTs are publicly accessible, anybody can easily copy a file referenced by an NFT. Furthermore, the ownership of an NFT on the blockchain does not inherently convey legally enforceable intellectual property rights to the file.

It has become well known that an NFT image can be copied or saved from a web browser by using a right click menu to download the referenced image. NFT supporters disparage this duplication of NFT artwork as a "right-clicker mentality". One collector quoted by Vice compared the value of a purchased NFT (in contrast to an unpurchased copy of the underlying asset) to that of a status symbol "to show off that they can afford to pay that much".[14]

The "right-clicker mentality" phrase spread virally after its introduction, particularly among those who were critical of the NFT marketplace and who appropriated the term to flaunt their ability to capture digital art backed by NFT with ease.[14] This criticism was promoted by Australian programmer Geoffrey Huntley who created "The NFT Bay", modeled after The Pirate Bay. The NFT Bay advertised a torrent file purported to contain 19 terabytes of digital art NFT images. Huntley compared his work to an art project from Pauline Pantsdown and hoped the site would help educate users on what NFTs are and are not.[154]

Storage off-chain

NFTs that represent digital art generally do not store the associated artwork file on the blockchain due to the large size of such a file, and the limited processing speed of blockchains. Such a token functions like a certificate of ownership, with a web address that points to the piece of art in question; this however makes the art itself vulnerable to link rot.[26]

Environmental concerns

See also: Environmental impact of bitcoin

NFT purchases and sales are enabled by the high energy usage, and consequent greenhouse gas emissions, associated with blockchain transactions.[155] Though all forms of Ethereum transactions have an impact on the environment, the direct impact of the transaction is also dependent upon the size of the Ethereum transaction.[156] The proof-of-work protocol required to regulate and verify blockchain transactions on networks such as Ethereum consumes a large amount of electricity.[157][158] To estimate the carbon footprint of a given NFT transaction requires a variety of assumptions or estimations about the manner in which that transaction is set up on the blockchain, the economic behavior of blockchain miners (and the energy demands of their mining equipment),[159] and the amount of renewable energy being used on these networks.[160] There are also conceptual questions, such as whether the carbon footprint estimate for an NFT purchase should incorporate some portion of the ongoing energy demand of the underlying network, or just the marginal impact of that particular purchase.[161] An analogy might be the carbon footprint associated with an additional passenger on a given airline flight.[155]

Some NFT technologies use validation protocols, such as proof of stake, that use much less energy per validation cycle. Other approaches to reducing electricity include the use of off-chain transactions as part of minting an NFT.[155] A number of NFT art sites hope to address these concerns, and some are moving to technologies and protocols with lower associated footprints.[162] Others now allow the option of buying carbon offsets when making NFT purchases, although the environmental benefits of this have been questioned.[163] In some instances, NFT artists have decided against selling some of their own work to limit carbon emission contributions.[164]

Artist and buyer fees

Sales platforms charge artists and buyers fees for minting, listing, claiming, and secondary sales. Analysis of NFT markets in March 2021, in the immediate aftermath of Beeple's "Everydays: the First 5000 Days" selling for US$69.3 million, found that most NFT artworks were selling for less than US$200, with a third selling for less than US$100.[165] Those selling NFTs below $100 were paying platform fees between 72.5% and 157.5% of that amount. On average the fees make up 100.5% of the price, meaning that such artists were on average paying more money in fees than they were making in sales.[165]

Plagiarism and fraud

There have been cases of artists and creators having their work sold by others as an NFT without permission.[166] After the artist Qing Han died in 2020, her identity was assumed by a fraudster and a number of her works became available for purchase as NFTs.[167] Similarly, a seller posing as Banksy succeeded in selling an NFT supposedly made by the artist for $336,000 in 2021; the seller refunded the money after the case drew media attention.[168] In 2022, it was discovered that as part of their NFT marketing campaign, an NFT company that voice actor Troy Baker announced his partnership with had plagiarized voice lines generated from 15.ai, a free AI text-to-speech project.[169][170][171]

The anonymity associated with NFTs and the ease with which they can be forged make it difficult to pursue legal action against NFT plagiarists.[172]

In February 2023, artist Mason Rothschild was ordered to pay $133,000 in damages to Hermès by a New York court, after a jury sided with the copyright holder, for his 2021 digital depictions of the brand's Birkin handbag.[173]

Some NFT marketplaces responded to cases of plagiarism by creating "takedown teams" to respond to artist complaints. The NFT marketplace OpenSea has rules against plagiarism and deepfakes (non-consensual intimate imagery). Some artists criticized OpenSea's efforts, saying they are slow to respond to takedown requests and that artists are subject to support scams from users who claim to be representatives of the platform.[58] Others argue that there is no market incentive for NFT marketplaces to crack down on plagiarism.[172]

  • A process known as "sleepminting" allows a fraudster to mint an NFT in an artist's wallet and transfer it back to their own account without the artist becoming aware.[174] This allowed a white hat hacker to mint a fraudulent NFT that had seemingly originated from the wallet of the artist Beeple.[174]
  • Plagiarism concerns led the art website DeviantArt to create an algorithm that compares user art posted on the DeviantArt website against art on popular NFT marketplaces. If the algorithm identifies art that is similar, it notifies and instructs the author how they can contact NFT marketplaces to request that they take down their plagiarized work.[58]
  • The BBC reported a case of insider trading when an employee of the NFT marketplace OpenSea bought specific NFTs before they were launched, with prior knowledge those NFTs would be promoted on the company's home page. NFT trading is an unregulated market in which there is no legal recourse for such abuses.[175]
  • When Adobe announced they were adding NFT support to their graphics editor Photoshop, the company proposed creating an InterPlanetary File System database as an alternative means of establishing authenticity for digital works.[176]
  • The price paid for specific NFTs and the sales volume of a particular NFT author may be artificially inflated by wash trading, which is prevalent due to a lack of government regulation on NFTs.[177][178]

Security

In January 2022, it was reported that some NFTs were being exploited by sellers to unknowingly gather users' IP addresses. The "exploit" works via the off-chain nature of NFT, as the user's computer automatically follows a web address in the NFT to display the content. The server at the address can then log the IP address and, in some cases, dynamically alter the returned content to show the result. OpenSea has a particular vulnerability to this loophole because it allows HTML files to be linked.[179]

Pyramid/Ponzi scheme claims

Critics compare the structure of the NFT market to a pyramid or Ponzi scheme, in which early adopters profit at the expense of those buying in later.[180] In June 2022, Bill Gates stated his belief that NFTs are "100% based on greater fool theory".[181]

"Rug pull" exit scams

A "rug pull" is a scam, similar to an exit scam or a pump and dump scheme, in which the developers of an NFT or other blockchain project hype the value of a project to pump up the price and then suddenly sell all their tokens to lock in massive profits or otherwise abandon the project while removing liquidity, permanently destroying the value of the project.[182]

See also

Notes

  1. ^ While all bitcoins are equal, each NFT may represent a different underlying asset and thus may have a different value.[15]

References

  1. ^ "Definition of NFT". July 20, 2023.
  2. ^ "NFTs Hit $17B In Trading in 2021, Up 21,000%". pymnts.com. March 10, 2022. Retrieved May 5, 2022.
  3. ^ Genç, Ekin (October 5, 2021). "Investors Spent Millions on 'Evolved Apes' NFTs. Then They Got Scammed". Vice Media. Retrieved November 9, 2021.
  4. ^ Hawkins, John (January 13, 2022). "NFTs, an overblown speculative bubble inflated by pop culture and crypto mania". The Conversation. Retrieved May 7, 2022.
  5. ^ Linares, Maria Gracia Santillana. "Cardano NFTs Becomes Third-Largest NFT Protocol By Trading Volume". Forbes. Retrieved April 25, 2023.
  6. ^ a b Vigna, Paul (May 3, 2022). "NFT Sales Are Flatlining". The Wall Street Journal. Retrieved May 5, 2022.
  7. ^ a b Yang, Maya (September 22, 2023). "The vast majority of NFTs are now worthless, new report shows". The Guardian. Retrieved September 26, 2023.
  8. ^ a b Vigliarolo, Brandon (September 21, 2023). "95% of NFTs now totally worthless, say researchers". www.theregister.com. Retrieved September 26, 2023.
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  10. ^ Mayor, Daniel (April 4, 2022). "NFTs and the Legitimizing Power of Copyright".
  11. ^ Dean, Sam (March 11, 2021). "$69 million for digital art? The NFT craze, explained". Los Angeles Times. Retrieved March 12, 2021.
  12. ^ a b Kastrenakes, Jacob (March 11, 2021). . The Verge. Archived from the original on March 21, 2021. Retrieved March 21, 2021.
  13. ^ Mendis, Dinusha (August 24, 2021). "When you buy an NFT, you don't completely own it – here's why". The Conversation. Retrieved November 23, 2021.
  14. ^ a b c Gault, Matthew (November 3, 2021). "What the Hell Is 'Right-Clicker Mentality'?". Vice. Retrieved November 3, 2021.
  15. ^ "WTF Is an NFT, Anyway? And Should I Care?". Wired. ISSN 1059-1028. Retrieved March 13, 2021.
  16. ^ Kastrenakes, Jacob (March 25, 2021). "Your Million-Dollar NFT Can Break Tomorrow If You're Not Careful". The Verge. Retrieved March 31, 2021.
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External links

  •   Media related to Non-fungible token at Wikimedia Commons

November 14, 2023
fungible, token, redirects, here, other, uses, disambiguation, fungible, token, unique, digital, identifier, that, recorded, blockchain, used, certify, ownership, authenticity, cannot, copied, substituted, subdivided, ownership, recorded, blockchain, transferr. NFT redirects here For other uses see NFT disambiguation A non fungible token NFT is a unique digital identifier that is recorded on a blockchain and is used to certify ownership and authenticity It cannot be copied substituted or subdivided 1 The ownership of an NFT is recorded in the blockchain and can be transferred by the owner allowing NFTs to be sold and traded NFTs can be created by anybody and require few or no coding skills to create NFTs typically contain references to digital files such as artworks photos videos and audio Because NFTs are uniquely identifiable they differ from cryptocurrencies which are fungible Illustration of a non fungible token generated by a smart contract a program designed to automatically execute contract terms Proponents claim that NFTs provide a public certificate of authenticity or proof of ownership but the legal rights conveyed by an NFT can be uncertain The ownership of an NFT as defined by the blockchain has no inherent legal meaning and does not necessarily grant copyright intellectual property rights or other legal rights over its associated digital file An NFT does not restrict the sharing or copying of its associated digital file and does not prevent the creation of NFTs that reference identical files The trading of NFTs in 2021 increased to 17 billion over just 82 million in the previous year 2 NFTs have been used as speculative investments and they have drawn criticism for the energy cost and carbon footprint associated with some types of blockchain as well as their use in art scams 3 The NFT market has also been compared to an economic bubble or a Ponzi scheme 4 During their peak the three biggest NFT platforms were Ethereum Solana and Cardano 5 In 2022 the NFT market collapsed a May 2022 estimate was that the number of sales was down over 90 compared to 2021 6 By September 2023 one report claimed that over 95 of NFT collections had zero monetary value 7 8 Contents 1 Characteristics 1 1 Copyright 2 History 3 Uses 3 1 Commonly associated files 3 1 1 Digital art 3 1 2 Games 3 1 3 Music and film 3 1 4 Other associated files 3 2 Use cases of NFTs in science and medicine 3 3 Speculation 3 4 Money laundering 3 5 Other uses 4 Standards in blockchains 5 Issues and criticisms 5 1 Unenforceability of copyright 5 2 Storage off chain 5 3 Environmental concerns 5 4 Artist and buyer fees 5 5 Plagiarism and fraud 5 6 Security 5 7 Pyramid Ponzi scheme claims 5 8 Rug pull exit scams 6 See also 7 Notes 8 References 9 External linksCharacteristicsAn NFT is a data file stored on a type of digital ledger called a blockchain which can be sold and traded 9 The NFT can be associated with a particular asset digital or physical such as an image art music or recording of a sports event 10 It may confer licensing rights to use the asset for a specified purpose 11 An NFT and if applicable the associated license to use copy or display the underlying asset can be traded and sold on digital markets 12 However the extralegal nature of NFT trading usually results in an informal exchange of ownership over the asset that has no legal basis for enforcement 13 and so often confers little more than use as a status symbol 14 NFTs function like cryptographic tokens but unlike cryptocurrencies NFTs are not usually mutually interchangeable so they are not fungible a A non fungible token contains data links for example which point to details about where the associated art is stored that can be affected by link rot 16 Copyright nbsp A diagram showing the right to own a non fungible token and linked file In most cases it is heavily dependent on the token s smart contract An NFT solely represents a proof of ownership of a blockchain record and does not necessarily imply that the owner possesses intellectual property rights to the digital asset the NFT purports to represent 17 18 19 Someone may sell an NFT that represents their work but the buyer will not necessarily receive copyright to that work and the seller may not be prohibited from creating additional NFT copies of the same work 20 21 According to legal scholar Rebecca Tushnet In one sense the purchaser acquires whatever the art world thinks they have acquired They definitely do not own the copyright to the underlying work unless it is explicitly transferred 22 Certain NFT projects such as Bored Apes explicitly assign intellectual property rights of individual images to their respective owners 23 The NFT collection CryptoPunks was a project that initially prohibited owners of its NFTs from using the associated digital artwork for commercial use but later allowed such use upon acquisition by the collection s parent company 24 HistoryThe first known NFT Quantum 25 was created by Kevin McCoy and Anil Dash in May 2014 It consists of a video clip made by McCoy s wife Jennifer McCoy registered the video on the Namecoin blockchain and sold it to Dash for 4 during a live presentation for the Seven on Seven conferences at the New Museum in New York City McCoy and Dash referred to the technology as monetized graphics 26 This explicitly linked a non fungible tradable blockchain marker to a work of art via on chain metadata enabled by Namecoin 27 In October 2015 the first NFT project Etheria was launched and demonstrated at DEVCON 1 in London Ethereum s first developer conference three months after the launch of the Ethereum blockchain Most of Etheria s 457 purchasable and tradable hexagonal tiles went unsold for more than five years until March 13 2021 when renewed interest in NFTs sparked a buying frenzy Within 24 hours all tiles of the current version and a prior version each hardcoded to 1 ETH US 0 43 at the time of launch were sold for a total of US 1 4 million 28 The term NFT only achieved wider usage with the ERC 721 standard first proposed in 2017 via the Ethereum GitHub following the launch of various NFT projects that year 29 30 The standard coincided with the launch of several NFT projects including Curio Cards CryptoPunks a project to trade unique cartoon characters released by the American studio Larva Labs on the Ethereum blockchain 31 32 and rare Pepe trading cards 29 The 2017 online game CryptoKitties was made profitable by selling tradable cat NFTs and its success brought public attention to NFTs 33 The NFT market experienced rapid growth during 2020 with its value tripling to US 250 million 34 In the first three months of 2021 more than US 200 million were spent on NFTs 35 In the early months of 2021 interest in NFTs increased after a number of high profile sales and art auctions 36 In May 2022 The Wall Street Journal reported that the NFT market was collapsing Daily sales of NFT tokens had declined 92 from September 2021 and the number of active wallets in the NFT market fell 88 from November 2021 While rising interest rates had impacted risky bets across the financial markets the Journal said NFTs are among the most speculative 6 A September 2023 report from cryptocurrency gambling website dappGambl claimed 95 of NFTs had fallen to zero monetary value 7 8 UsesCommonly associated files NFTs have been used to exchange digital tokens that link to a digital file asset Ownership of an NFT is often associated with a license to use such a linked digital asset but generally does not confer the copyright to the buyer Some agreements only grant a license for personal non commercial use while other licenses also allow commercial use of the underlying digital asset 37 This kind of decentralized intellectual copyright poses an alternative to established forms of safeguarding copyright controlled by state institutions and middlemen within the respective industry 38 Digital art See also List of most expensive non fungible tokens Digital art is a common use case for NFTs 39 High profile auctions of NFTs linked to digital art have received considerable public attention the first such major house auction took place at Christie s in 2021 40 The work entitled Merge by artist Pak was the most expensive NFT with an auction price of US 91 8 million 41 and Everydays the First 5000 Days by artist Mike Winkelmann known professionally as Beeple the second most expensive at US 69 3 million in 2021 12 42 nbsp Some digital art NFTs like these pixel art characters are examples of generative art Some NFT collections including Bored Apes EtherRocks and CryptoPunks are examples of generative art where many different images are created by assembling a selection of simple picture components in different combinations 43 In March 2021 the blockchain company Injective Protocol bought a 95 000 original screen print entitled Morons White from English graffiti artist Banksy and filmed somebody burning it with a cigarette lighter They uploaded known as minting in the NFT scene and sold the video as an NFT 44 45 The person who destroyed the artwork who called themselves Burnt Banksy described the act as a way to transfer a physical work of art to the NFT space 45 American curator and art historian Tina Rivers Ryan who specializes in digital works said that art museums are widely not convinced that NFTs have lasting cultural relevance 46 Ryan compares NFTs to the net art fad before the dot com bubble 47 48 In July 2022 after the controversial sale of Michelangelo s Doni Tondo in Italy the sale of NFT reproductions of famous artworks was prohibited in Italy Given the complexity and lack of regulation of the matter the Ministry of Culture of Italy temporarily requested that its institutions refrain from signing contracts involving NFTs 49 No centralized means of authentication exists to prevent stolen and counterfeit digital works from being sold as NFTs although auction houses like Sotheby s Christie s and various museums and galleries worldwide started collaborations and partnerships with digital artists such as Refik Anadol Dangiuz and Sarah Zucker NFTs associated with digital artworks could be sold and bought via NFT platforms OpenSea launched in 2017 was one of the first marketplaces to host various types of NFTs 50 51 In July 2019 the National Basketball Association the NBA Players Association and Dapper Labs the creator of CryptoKitties started a joint venture NBA Top Shot for basketball fans that let users buy NFTs of historic moments in basketball 52 53 In 2020 Rarible was found allowing multiple assets In 2021 Rarible and Adobe formed a partnership to simplify the verification and security of metadata for digital content including NFTs 50 In 2021 a cryptocurrency exchange Binance launched its NFT marketplace 54 In 2022 eToro Art by eToro was founded focusing on supporting NFT collections and emerging creators 50 55 Sotheby s and Christie s auction houses showcase artworks associated with the respective NFTs both in virtual galleries and physical screens monitors and TVs 56 57 58 Mars House an architectural NFT created in May 2020 by artist Krista Kim sold in 2021 for 288 Ether ETH at that time equivalent to US 524 558 59 Games Main article Blockchain game NFTs can represent in game assets Some commentators describe these as being controlled by the user instead of the game developer 60 if they can be traded on third party marketplaces without permission from the game developer Their reception from game developers though has been generally mixed with some like Ubisoft embracing the technology but Valve and Microsoft formally prohibiting them 61 CryptoKitties was an early successful blockchain online game in which players adopt and trade virtual cats The monetization of NFTs within the game raised a 12 5 million investment with some kitties selling for over 100 000 each 33 62 63 64 Following its success CryptoKitties was added to the ERC 721 standard which was created in January 2018 and finalized in June 65 29 In October 2021 Valve Corporation banned applications from their Steam platform if those applications use blockchain technology or NFTs to exchange value or game artifacts 66 In December 2021 Ubisoft announced Ubisoft Quartz an NFT initiative which allows people to buy artificially scarce digital items using cryptocurrency The announcement was heavily criticized by audiences with the Quartz announcement video attaining a dislike ratio of 96 on YouTube Ubisoft subsequently unlisted the video from YouTube 67 68 The announcement was also criticized internally by Ubisoft developers 69 70 71 The Game Developers Conference s 2022 annual report stated that 70 percent of developers surveyed said their studios had no interest in integrating NFTs or cryptocurrency into their games 72 73 Some luxury brands minted NFTs for online video game cosmetics 74 In November 2021 investment firm Morgan Stanley published a note claiming that this could become a US 56 billion market by 2030 75 In July 2022 Mojang Studios announced that NFTs would not be permitted in Minecraft saying that they went against the game s values of creative inclusion and playing together 76 Music and film NFTs have been proposed for use within the film industry as a way to tokenize movie scenes and sell them as collectibles in the form of NFTs 77 Artists involved in the entertainment industry can seek royalties through NFTs 78 So far NFTs have often been used in both the music as well as the film industry In May 2018 20th Century Fox partnered with Atom Tickets and released limited edition Deadpool 2 digital posters to promote the film They were available from OpenSea and the GFT exchange 79 In March 2021 Adam Benzine s 2015 documentary Claude Lanzmann Spectres of the Shoah became the first motion picture and documentary film to be auctioned as an NFT 80 Other examples of NFTs being used in the film industry include a collection of NFT artworks for Godzilla vs Kong 81 the release of both Kevin Smith s horror movie KillRoy Was Here and the 2021 film Zero Contact as NFTs in 2021 82 In April 2021 an NFT was released for the score of the movie Triumph composed by Gregg Leonard 83 In November 2021 film director Quentin Tarantino released seven NFTs based on uncut scenes of Pulp Fiction Miramax subsequently filed a lawsuit claiming that their film rights were violated and that the original 1993 contract with Tarantino gave them the right to mint NFTs in relation to Pulp Fiction 84 In August 2022 Muse released album Will of the People as 1 000 NFTs and it became the first album for which NFT sales would qualify for the UK and Australian charts 85 86 By February 2021 NFTs accounted for US 25 million of revenue generated through the sale of artwork and songs as NFTs 87 On February 28 2021 electronic dance musician 3LAU sold a collection of 33 NFTs for a total of US 11 7 million to commemorate the three year anniversary of his Ultraviolet album 88 89 On March 3 2021 an NFT was made to promote the Kings of Leon album When You See Yourself 90 91 92 Other musicians who have used NFTs include American rapper Lil Pump 93 94 95 Grimes 96 visual artist Shepard Fairey in collaboration with record producer Mike Dean 97 and rapper Eminem 98 A paper presented at the 40th International Conference on Information Systems in Munich in 2019 suggested using NFTs as tickets for different types of events 99 This would enable organizers of the respective events or artists performing there to receive royalties on the resale of each ticket 100 Other associated files A number of internet memes have been associated with NFTs which were minted and sold by their creators or by their subjects 101 Examples include Doge an image of a Shiba Inu dog 102 as well as Charlie Bit My Finger 103 Nyan Cat 104 105 and Disaster Girl 106 Some virtual worlds often marketed as metaverses have incorporated NFTs as a means of trading virtual items and virtual real estate 107 Some pornographic works have been sold as NFTs though hostility from NFT marketplaces towards pornographic material has presented significant drawbacks for creators 108 109 By using NFTs people engaged in this area of the entertainment industry are able to publish their works without third party platforms being able to delete them 110 The first credited political protest NFT Destruction of Nazi Monument Symbolizing Contemporary Lithuania was a video filmed by Professor Stanislovas Tomas on April 8 2019 and minted on March 29 2021 In the video Tomas uses a sledgehammer to destroy a state sponsored Lithuanian plaque located on the Lithuanian Academy of Sciences honoring Nazi war criminal Jonas Noreika 111 In 2020 CryptoKitties developer Dapper Labs released the NBA TopShot project which allowed the purchase of NFTs linked to basketball highlights 112 The project was built on top of the Flow blockchain 113 In March 2021 an NFT of Twitter founder Jack Dorsey s first ever tweet sold for 2 9 million The same NFT was listed for sale in 2022 at 48 million but only achieved a top bid of 280 114 On December 15 2022 Donald Trump former president of the United States announced a line of NFTs featuring images of himself for 99 each 115 It was reported that he made between 100 001 and 1 million from the scheme 116 Use cases of NFTs in science and medicine NFTs have been proposed for purposes related to scientific and medical purposes 117 Suggestions include turning patient data into NFTs 118 tracking supply chains 119 and minting patents as NFTs 120 The monetary aspect of the sale of NFTs has been used by academic institutions to finance research projects nbsp George M Church sold NFTs of an artistic representation of his genome and likeness in 2022 The University of California Berkeley announced in May 2021 its intention to auction NFTs of two patents of inventions for which the creators had received a Nobel Prize the patents for CRISPR gene editing and cancer immunotherapy The university would however retain ownership of the patents 121 122 85 of funds gathered through the sale of the collection were to be used to finance research 123 124 The collection included handwritten notices and faxes by James Allison and was named The Fourth Pillar It sold in June 2022 for 22 Ether about US 54 000 at the time 125 George Church a US geneticist announced his intention to sell his DNA via NFTs and use the profits to finance research conducted by Nebula Genomics In June 2022 20 NFTs with his likeness were published instead of the originally planned NFTs of his DNA due to the market conditions at the time 117 Despite mixed reactions the project is considered to be part of an effort to use the genetic data of 15 000 individuals to support genetic research By using NFTs the project wants to ensure that the users submitting their genetic data are able to receive direct payment for their contributions 117 126 Several other companies have been involved in similar and often criticized efforts to use blockchain based genetic data in order to guarantee users more control over their data and enable them to receive direct financial compensation whenever their data is being sold 125 Molecule Protocol a project based in Switzerland is trying to use NFTs to digitize the intellectual copyright of individual scientists and research teams to finance research 127 The project s whitepaper explains the aim is to represent the copyright of scientific papers as NFTs and enable their trade between researchers and investors on a future marketplace 128 The project was able to raise US 12 million in seed money in July 2022 127 A similar approach has been announced by RMDS Lab 129 Speculation NFTs representing digital collectables and artworks are a speculative asset 130 The NFT buying surge was called an economic bubble by experts who also compared it to the Dot com bubble 131 132 In March 2021 Mike Winkelmann called NFTs an irrational exuberance bubble 133 By mid April 2021 demand subsided causing prices to fall significantly 134 Financial theorist William J Bernstein compared the NFT market to 17th century tulip mania saying any speculative bubble requires a technological advance for people to get excited about with part of that enthusiasm coming from the extreme predictions being made about the product 135 For regulatory policymakers NFTs have exacerbated challenges such as speculation fraud and high volatility 136 Money laundering NFTs as with other blockchain securities and with traditional art sales can potentially be used for money laundering 137 NFTs can be used for wash trading by creating several wallets for one individual generating several fictitious sales and consequently selling the respective NFT to a third party 138 According to a report by Chainalysis these types of wash trades are becoming popular among money launderers because of the largely anonymous nature of transactions on NFT marketplaces 139 140 141 Looksrare created in early 2022 came to be known for the large sums generated through the sale of NFTs in its earliest days amounting to US 400 000 000 a day These large sums were generated in large part through wash trading 141 The Royal United Services Institute said that any risks in relation to money laundering through NFTs could be mitigated through the use of KYC best practices strong cyber security measures and a stolen art registry without restricting the growth of this new market 137 Auction platforms for NFTs may face regulatory pressure to comply with anti money laundering legislation Gou Wenjun the director of a monitoring centre for the People s Bank of China said that NFTs could easily become money laundering tools He pointed to unlawful exploitation of cryptographic technologies and said that illicit actors often presented themselves as innovators in financial technology 142 A 2022 study from the United States Treasury assessed that there was some evidence of money laundering risk in the high value art market including through the emerging digital art market such as the use of non fungible tokens NFTs 143 The study considered how NFT transactions may be a simpler option for laundering money through art by avoiding the transportation or insurance complications in trading physical art Several NFT exchanges were labeled as virtual asset service providers that may be subject to Financial Crimes Enforcement Network regulations 144 In March 2022 two people were charged for the execution of a million dollar NFT scheme through wire fraud 145 The European Commission announced in July 2022 that it was planning to draw up regulations to combat money laundering by 2024 146 147 Other uses In 2019 Nike patented a system called CryptoKicks that would use NFTs to verify the authenticity of its physical products and would give a virtual version of the shoe to the customer 148 Certain NFT releases have also added exclusivity to the NFT utility including access to private online clubs 149 150 Standards in blockchainsSeveral blockchains have added support for NFTs since Ethereum created its ERC 721 standard 151 152 ERC 721 is an inheritable smart contract standard which means that developers can create contracts by copying from a reference implementation ERC 721 provides core methods that allow tracking the owner of a unique identifier as well as a way for the owner to transfer the asset to others 151 Another standard ERC 1155 offers semi fungibility whereby a token represents a class of interchangeable assets 153 Issues and criticismsUnenforceability of copyright nbsp As an image on the web the digital art linked to a non fungible token may be right clicked and saved like any other picture file Because the contents of NFTs are publicly accessible anybody can easily copy a file referenced by an NFT Furthermore the ownership of an NFT on the blockchain does not inherently convey legally enforceable intellectual property rights to the file It has become well known that an NFT image can be copied or saved from a web browser by using a right click menu to download the referenced image NFT supporters disparage this duplication of NFT artwork as a right clicker mentality One collector quoted by Vice compared the value of a purchased NFT in contrast to an unpurchased copy of the underlying asset to that of a status symbol to show off that they can afford to pay that much 14 The right clicker mentality phrase spread virally after its introduction particularly among those who were critical of the NFT marketplace and who appropriated the term to flaunt their ability to capture digital art backed by NFT with ease 14 This criticism was promoted by Australian programmer Geoffrey Huntley who created The NFT Bay modeled after The Pirate Bay The NFT Bay advertised a torrent file purported to contain 19 terabytes of digital art NFT images Huntley compared his work to an art project from Pauline Pantsdown and hoped the site would help educate users on what NFTs are and are not 154 Storage off chain NFTs that represent digital art generally do not store the associated artwork file on the blockchain due to the large size of such a file and the limited processing speed of blockchains Such a token functions like a certificate of ownership with a web address that points to the piece of art in question this however makes the art itself vulnerable to link rot 26 Environmental concerns See also Environmental impact of bitcoin NFT purchases and sales are enabled by the high energy usage and consequent greenhouse gas emissions associated with blockchain transactions 155 Though all forms of Ethereum transactions have an impact on the environment the direct impact of the transaction is also dependent upon the size of the Ethereum transaction 156 The proof of work protocol required to regulate and verify blockchain transactions on networks such as Ethereum consumes a large amount of electricity 157 158 To estimate the carbon footprint of a given NFT transaction requires a variety of assumptions or estimations about the manner in which that transaction is set up on the blockchain the economic behavior of blockchain miners and the energy demands of their mining equipment 159 and the amount of renewable energy being used on these networks 160 There are also conceptual questions such as whether the carbon footprint estimate for an NFT purchase should incorporate some portion of the ongoing energy demand of the underlying network or just the marginal impact of that particular purchase 161 An analogy might be the carbon footprint associated with an additional passenger on a given airline flight 155 Some NFT technologies use validation protocols such as proof of stake that use much less energy per validation cycle Other approaches to reducing electricity include the use of off chain transactions as part of minting an NFT 155 A number of NFT art sites hope to address these concerns and some are moving to technologies and protocols with lower associated footprints 162 Others now allow the option of buying carbon offsets when making NFT purchases although the environmental benefits of this have been questioned 163 In some instances NFT artists have decided against selling some of their own work to limit carbon emission contributions 164 Artist and buyer fees Sales platforms charge artists and buyers fees for minting listing claiming and secondary sales Analysis of NFT markets in March 2021 in the immediate aftermath of Beeple s Everydays the First 5000 Days selling for US 69 3 million found that most NFT artworks were selling for less than US 200 with a third selling for less than US 100 165 Those selling NFTs below 100 were paying platform fees between 72 5 and 157 5 of that amount On average the fees make up 100 5 of the price meaning that such artists were on average paying more money in fees than they were making in sales 165 Plagiarism and fraud There have been cases of artists and creators having their work sold by others as an NFT without permission 166 After the artist Qing Han died in 2020 her identity was assumed by a fraudster and a number of her works became available for purchase as NFTs 167 Similarly a seller posing as Banksy succeeded in selling an NFT supposedly made by the artist for 336 000 in 2021 the seller refunded the money after the case drew media attention 168 In 2022 it was discovered that as part of their NFT marketing campaign an NFT company that voice actor Troy Baker announced his partnership with had plagiarized voice lines generated from 15 ai a free AI text to speech project 169 170 171 The anonymity associated with NFTs and the ease with which they can be forged make it difficult to pursue legal action against NFT plagiarists 172 In February 2023 artist Mason Rothschild was ordered to pay 133 000 in damages to Hermes by a New York court after a jury sided with the copyright holder for his 2021 digital depictions of the brand s Birkin handbag 173 Some NFT marketplaces responded to cases of plagiarism by creating takedown teams to respond to artist complaints The NFT marketplace OpenSea has rules against plagiarism and deepfakes non consensual intimate imagery Some artists criticized OpenSea s efforts saying they are slow to respond to takedown requests and that artists are subject to support scams from users who claim to be representatives of the platform 58 Others argue that there is no market incentive for NFT marketplaces to crack down on plagiarism 172 A process known as sleepminting allows a fraudster to mint an NFT in an artist s wallet and transfer it back to their own account without the artist becoming aware 174 This allowed a white hat hacker to mint a fraudulent NFT that had seemingly originated from the wallet of the artist Beeple 174 Plagiarism concerns led the art website DeviantArt to create an algorithm that compares user art posted on the DeviantArt website against art on popular NFT marketplaces If the algorithm identifies art that is similar it notifies and instructs the author how they can contact NFT marketplaces to request that they take down their plagiarized work 58 The BBC reported a case of insider trading when an employee of the NFT marketplace OpenSea bought specific NFTs before they were launched with prior knowledge those NFTs would be promoted on the company s home page NFT trading is an unregulated market in which there is no legal recourse for such abuses 175 When Adobe announced they were adding NFT support to their graphics editor Photoshop the company proposed creating an InterPlanetary File System database as an alternative means of establishing authenticity for digital works 176 The price paid for specific NFTs and the sales volume of a particular NFT author may be artificially inflated by wash trading which is prevalent due to a lack of government regulation on NFTs 177 178 Security In January 2022 it was reported that some NFTs were being exploited by sellers to unknowingly gather users IP addresses The exploit works via the off chain nature of NFT as the user s computer automatically follows a web address in the NFT to display the content The server at the address can then log the IP address and in some cases dynamically alter the returned content to show the result OpenSea has a particular vulnerability to this loophole because it allows HTML files to be linked 179 Pyramid Ponzi scheme claims Critics compare the structure of the NFT market to a pyramid or Ponzi scheme in which early adopters profit at the expense of those buying in later 180 In June 2022 Bill Gates stated his belief that NFTs are 100 based on greater fool theory 181 Rug pull exit scams A rug pull is a scam similar to an exit scam or a pump and dump scheme in which the developers of an NFT or other blockchain project hype the value of a project to pump up the price and then suddenly sell all their tokens to lock in massive profits or otherwise abandon the project while removing liquidity permanently destroying the value of the project 182 See alsoDecentralized autonomous organization Web3Notes While all bitcoins are equal each NFT may represent a different underlying asset and thus may have a different value 15 References Definition of NFT July 20 2023 NFTs Hit 17B In Trading in 2021 Up 21 000 pymnts com March 10 2022 Retrieved May 5 2022 Genc Ekin October 5 2021 Investors Spent Millions on Evolved Apes NFTs Then They Got Scammed Vice Media Retrieved November 9 2021 Hawkins John January 13 2022 NFTs an overblown speculative bubble inflated by pop culture and crypto mania The Conversation Retrieved May 7 2022 Linares Maria Gracia Santillana Cardano NFTs Becomes Third Largest NFT Protocol By Trading Volume Forbes Retrieved April 25 2023 a b Vigna Paul May 3 2022 NFT Sales Are Flatlining The Wall Street Journal Retrieved May 5 2022 a b Yang Maya September 22 2023 The vast majority of NFTs are now worthless new report shows The Guardian Retrieved September 26 2023 a b Vigliarolo Brandon September 21 2023 95 of NFTs now totally worthless say researchers www theregister com Retrieved September 26 2023 Wilson Kathleen Bridget Karg Adam Ghaderi Hadi October 2021 Prospecting non fungible tokens in the digital economy Stakeholders and ecosystem risk and opportunity Business Horizons 65 5 657 670 doi 10 1016 j bushor 2021 10 007 S2CID 240241342 Mayor Daniel April 4 2022 NFTs and the Legitimizing Power of Copyright Dean Sam March 11 2021 69 million for digital art The NFT craze explained Los Angeles Times Retrieved March 12 2021 a b Kastrenakes Jacob March 11 2021 Beeple sold an NFT for 69 million The Verge Archived from the original on March 21 2021 Retrieved March 21 2021 Mendis Dinusha August 24 2021 When you buy an NFT you don t completely own it here s why The Conversation Retrieved November 23 2021 a b c Gault Matthew November 3 2021 What the Hell Is Right Clicker Mentality Vice Retrieved November 3 2021 WTF Is an NFT Anyway And Should I Care Wired ISSN 1059 1028 Retrieved March 13 2021 Kastrenakes Jacob March 25 2021 Your Million Dollar NFT Can Break Tomorrow If You re Not Careful The Verge Retrieved March 31 2021 Gallagher Jacob March 15 2021 NFTs Are the Biggest Internet Craze Do They Work for Sneakers The Wall Street Journal ISSN 0099 9660 Retrieved June 26 2021 Thaddeus Johns Josie March 11 2021 What Are NFTs Anyway One Just Sold for 69 Million The New York Times ISSN 0362 4331 Retrieved June 26 2021 NFT blockchain drives surge in digital art auctions BBC March 3 2021 Retrieved March 12 2021 Salmon Felix March 12 2021 How to exhibit your very own 69 million Beeple Axios Retrieved March 13 2021 Clark Mitchell March 11 2021 NFTs explained The Verge Retrieved March 11 2021 Majocha Courtney Memes for Sale Making sense of NFTs Harvard Law Today Retrieved June 26 2021 Ifeanyi K C January 18 2022 The Bored Ape Yacht Club apes into Hollywood Fast Company Retrieved July 19 2022 Kastrenakes Jacob March 11 2022 Bored Ape Yacht Club creator buys CryptoPunks and Meebits The Verge Retrieved July 19 2022 Cascone Sarah May 7 2021 Sotheby s Is Selling the First NFT Ever Minted and Bidding Starts at 100 Artnet News Retrieved November 12 2021 a b Dash Anil April 2 2021 NFTs Weren t Supposed to End Like This The Atlantic Retrieved May 5 2021 Ostroff Caitlin May 8 2021 The NFT Origin Story Starring Digital Cats The Wall Street Journal ISSN 0099 9660 Retrieved December 12 2021 The Cult of CryptoPunks TechCrunch April 8 2021 Archived from the original on May 6 2021 Retrieved May 5 2021 a b c Entriken William Shirley Dieter Evans Jacob Natassia Sachs January 24 2018 EIP 721 Non Fungible Token Standard Ethereum Improvement Proposals Retrieved October 28 2021 Urbach Nils December 13 2019 NFTs in Practice Non Fungible Tokens as Core Component of a Blockchain based Event Ticketing Application PDF Fraunhofer Research Center Finance and Information Management Retrieved October 28 2021 Should You Buy a Bitcoin Inspired Image of Lindsay Lohan Bloomberg com March 8 2021 Retrieved April 7 2021 Abbruzzese Jason June 16 2017 This ethereum based project could change how we think about digital art Mashable Retrieved April 6 2021 a b CryptoKitties craze slows down transactions on Ethereum BBC News December 5 2017 Retrieved May 8 2022 The NFT Market Tripled Last Year and It s Gaining Even More Momentum in 2021 Morning Brew Retrieved April 8 2021 NFTs Are Shaking Up the Art World But They Could Change So Much More Time Retrieved April 6 2021 Howcroft Elizabeth March 17 2021 Explainer NFTs are hot So what are they Reuters Retrieved April 6 2021 Colicev Anatoli 2022 How can non fungible tokens bring value to brands International Journal of Research in Marketing 40 30 37 doi 10 1016 j ijresmar 2022 07 003 S2CID 251183853 Cf Daniele Daniel May 17 2021 NFTs Nifty Copyright Issues Intellectual Property Canada mondaq Retrieved January 3 2023 Lee Edward 2022 NFTs as Decentralized Intellectual Property University of Illinois Law Review 20 doi 10 2139 ssrn 4023736 S2CID 247727602 SSRN 4023736 Retrieved February 15 2023 Patterson Dan March 4 2021 Blockchain company buys and burns Banksy artwork to turn it into a digital original CBS News Retrieved March 17 2021 Damiani Jesse March 1 2021 SuperRare And Verisart Announce 10x10 NFT Auction Series Featuring Neil Beloufa Petra Cortright Shepard Fairey And More Forbes Retrieved April 21 2023 Pak Breaks Record for Most Expensive NFT Sale HYPEBEAST December 7 2021 Retrieved January 16 2022 Thaddeus Johns Josie March 11 2021 What Are NFTs Anyway One Just Sold for 69 Million The New York Times ISSN 0362 4331 Retrieved April 14 2021 Sugiura Eri October 13 2021 NFTs turn Japan s manga and anime into genuine art Financial Times Retrieved November 4 2021 Banksy art burned destroyed and sold as token in money making stunt BBC News March 9 2021 Retrieved October 13 2021 a b Iscoe Adam May 8 2021 Burnt Banksy s Inflammatory N F T Not Art The New Yorker Retrieved November 18 2021 Lu Fei January 6 2022 Does NFT Art Have A Place in the Museum in 2022 Jing Culture and Commerce Retrieved January 6 2022 Why many art collectors are staying away from the NFT gold rush The Independent April 30 2021 Archived from the original on June 21 2022 Retrieved January 27 2022 Valeonti Foteini Bikakis Antonis Terras Melissa Speed Chris Hudson Smith Andrew Chalkias Konstantinos January 2021 Crypto Collectibles Museum Funding and OpenGLAM Challenges Opportunities and the Potential of Non Fungible Tokens NFTs Applied Sciences 11 21 9931 doi 10 3390 app11219931 Italian government plans to halt digital sales of masterpieces from its major museums The Art Newspaper International art news and events July 8 2022 Retrieved September 1 2022 a b c Rodeck David May 10 2022 Top NFT Marketplaces Of 2022 Forbes Advisor Retrieved September 1 2022 Ehrlich Steven NFT Marketplace CEO Explains Why The Industry Is Moving Beyond Ideological Purists Forbes Retrieved September 1 2022 Beer Tommy NBA Top Shot Collectibles Continues Meteoric Rise With Over 50 Million in Sales in a Week Forbes Retrieved September 1 2022 Bumbaca Chris What is NBA Top Shot and why is a LeBron highlight worth 208K This is a real market Mark Cuban says USA Today Retrieved 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2021 Retrieved April 7 2021 Cheng Evelyn December 6 2017 Meet CryptoKitties the 100 000 digital beanie babies epitomizing the cryptocurrency mania CNBC Retrieved April 7 2021 For the future potential of blockchain games with CryptoKitties as an example see Bamakan Seyed Mojtaba Hosseini et al February 2 2022 Patents and intellectual property assets as non fungible tokens key technologies and challenges Scientific Reports 12 1 2178 arXiv 2304 10490 Bibcode 2022NatSR 12 2178B doi 10 1038 s41598 022 05920 6 PMC 8828876 PMID 35140251 S2CID 246700675 Cf Serada Alesja Sihvonen Tanja Harviainen J Tuomas February 20 2020 CryptoKitties and the New Ludic Economy How Blockchain Introduces Value Ownership and Scarcity in Digital Gaming Games and Culture 16 4 457 480 doi 10 1177 1555412019898305 S2CID 213245049 Entriken William June 22 2018 Move EIP 721 to Final 1170 ethereum EIPs b015a86 GitHub Retrieved November 7 2021 Jiang Sisi October 15 2021 Good Riddance Steam Bans Games That Feature Crypto And NFTs Kotaku Archived from the original on October 15 2021 Ubisoft s NFT Announcement Has Been Intensely Disliked Kotaku December 8 2021 Retrieved December 23 2021 GameCentral December 8 2021 Ubisoft unlist Quartz NFT announcement video as it gets 16K dislikes Metro Retrieved December 23 2021 Ubisoft Developers Confused Upset Over NFT Plans Game Rant December 15 2021 Retrieved December 23 2021 Ubisoft Quartz Some developers of the company didn t like entering the world of NFTs Pledge Times December 15 2021 Retrieved December 23 2021 Nightingale Ed December 16 2021 French trade union criticises Ubisoft Quartz as a useless costly ecologically mortifying tech Eurogamer Retrieved December 23 2021 Jeffrey Cal Game Developers Conference report most developers frown on blockchain games TechSpot Retrieved January 21 2022 Peters Jay January 20 2022 Many game developers hate NFTs too The Verge Retrieved January 26 2022 Thomas Dana October 4 2021 Dolce amp Gabbana Just Set a 6 Million Record for Fashion NFTs The New York Times ISSN 0362 4331 Retrieved January 20 2022 Lee Isabelle November 17 2021 Luxury NFTs could become a 56 billion market by 2030 and could see dramatically increased demand thanks to the metaverse Morgan Stanley says Insider Retrieved January 20 2022 Taylor Josh July 21 2022 Minecraft developers won t allow NFTs on gaming platform The Guardian Retrieved July 21 2022 Sestino Andrea Guido Gianluigi Peluso Alessandro M 2022 Non Fungible Tokens NFTs Examining the Impact on Consumers and Marketing Strategies p 32 f doi 10 1007 978 3 031 07203 1 ISBN 978 3 031 07202 4 S2CID 250238540 Lee Edward 2022 NFTs as Decentralized Intellectual Property University of Illinois Law Review 36 39 43 doi 10 2139 ssrn 4023736 S2CID 247727602 SSRN 4023736 Retrieved February 15 2023 Using NFTs artists now have the option of choosing to require a resale royalty for every resale of their NFTs Heal Jordan June 24 2019 Deadpool posters can now be bought as NFTs Coin Rivet Retrieved May 19 2021 via Yahoo Cf Chmielewski Dawn C August 3 2018 Deadpool 2 Jumps on the Digital Collectibles Bandwagon Deadline Retrieved May 19 2021 Ravindran Manori March 15 2021 NFT Craze Enters Film World Claude Lanzmann Documentary is First Oscar Nominee to Be Released as Digital Token Variety Retrieved April 14 2021 Bosselman Haley March 31 2021 Godzilla vs Kong to Have First Major Motion Picture NFT Art Release Variety Retrieved April 14 2021 Sestino Andrea Guido Gianluigi Peluso Alessandro M 2022 Non Fungible Tokens NFTs Examining the Impact on Consumers and Marketing Strategies p 33 doi 10 1007 978 3 031 07203 1 ISBN 978 3 031 07202 4 S2CID 250238540 Finn John April 30 2021 World s First Movie Score amp Soundtrack For Sale As An NFT ScreenRant Retrieved September 8 2021 Diaz Johnny November 17 2017 Miramax Sues Quentin Tarantino Over Planned Pulp Fiction NFTs The New York Times Retrieved September 8 2021 Cf Sestino Andrea Guido Gianluigi Peluso Alessandro M 2022 Non Fungible Tokens NFTs Examining the Impact on Consumers and Marketing Strategies p 33 doi 10 1007 978 3 031 07203 1 ISBN 978 3 031 07202 4 S2CID 250238540 See also Lee Edward 2022 NFTs as Decentralized Intellectual Property University of Illinois Law Review 41 f doi 10 2139 ssrn 4023736 S2CID 247727602 SSRN 4023736 Retrieved February 15 2023 Bethany Minelle September 2 2022 Muse s Will Of The People becomes first UK number one album with NFT technology news sky com Sky News Retrieved May 20 2023 Eamonn Forde August 1 2022 Sales from the crypto Muse NFT album to become first new chart eligible format in seven years The Guardian Retrieved May 20 2023 Stassen Murray March 12 2021 Music related NFT sales have topped 25m in the past month Music Business Worldwide Retrieved May 7 2021 Brown Abram Largest NFT Sale Ever Came From A Business School Dropout Turned Star DJ Forbes Retrieved May 20 2021 Barcelin Jason May 1 2021 Las Vegas DJ producer makes millions selling NFTs Las Vegas Review Journal Retrieved October 13 2021 Hissong Samantha March 3 2021 Kings of Leon Will Be the First Band to Release an Album as an NFT Rolling Stone Retrieved May 19 2021 Steele Anne March 23 2021 Musicians Turn to NFTs to Make Up for Lost Revenue The Wall Street Journal ISSN 0099 9660 Retrieved May 7 2021 Hissong Samantha March 9 2021 Music NFTs Have Gone Mainstream Who s In Rolling Stone Retrieved May 20 2021 CEO of Sweet Talks NFT Partnership with Rapper Lil Pump Cheddar March 23 2021 Retrieved March 29 2021 Curto Justin March 18 2021 Musician NFT Projects Ranked by How Many F s I Can Give Vulture Retrieved March 29 2021 Rappers and NFTs How Hip Hop Is Cashing in on Non Fungible Tokens XXL Mag March 23 2021 Retrieved March 29 2021 Kastrenakes Jacob March 1 2021 Grimes sold 6 million worth of digital art as NFTs The Verge Retrieved April 7 2021 Halperin Shirley April 21 2021 Mike Dean and Shepard Fairey Team for NFT Offering OBEY 4 22 Variety Retrieved May 7 2021 Kaufman Gil Eminem s First NFT Drop Shady Con Includes One of a Kind Slim Shady Produced Beats Billboard Retrieved May 19 2021 Regner Ferdinand Schweizer Andre Urbach Nils March 15 2021 NFTs in Practice Non Fungible Tokens as Core Component of a Blockchain based Event Ticketing Application Researchgate Retrieved January 3 2023 Cf Golden Ticket How NFTs Can Help Artists Profit From Ticket Resales MiamiLaw April 12 2021 Retrieved September 8 2021 See also NFTs The future of ticketing IQ Mag May 6 2021 Retrieved January 3 2023 Gonserkewitz Phil Karger Erik Jagals Marvin 2022 Non Fungible Tokens Use Cases of NFTs and Future Research Agenda Risk Governance amp Control Financial Markets amp Institutions 12 3 13 doi 10 22495 rgcv12i3p1 S2CID 252304860 For tickets to events there is a secondary market where the seller can call an arbitrary price There is a risk of purchasing invalid tickets Regular tickets can also be copied and thus sold multiple times although only one of them is valid NFTs can guarantee the uniqueness and authenticity of the tickets NFTs and me meet the people trying to sell their memes for millions The Guardian June 23 2021 Retrieved July 17 2021 Iconic Doge meme NFT breaks record selling for 4 million NBC News June 11 2021 Retrieved July 17 2021 Charlie Bit Me NFT sale Brothers to pay for university with auction money BBC News June 3 2021 Retrieved July 17 2021 Griffith Erin February 22 2021 Why an Animated Flying Cat With a Pop Tart Body Sold for Almost 600 000 The New York Times ISSN 0362 4331 Retrieved July 17 2021 Griffith Erin February 22 2021 Why an Animated Flying Cat With a Pop Tart Body Sold for Almost 600 000 The New York Times ISSN 0362 4331 Retrieved April 7 2021 Zoe Roth sells Disaster Girl meme as NFT for 500 000 BBC News April 30 2021 Retrieved July 17 2021 Virtual real estate plot sells for close to 1 mln Reuters June 18 2021 Dickson EJ March 16 2021 Porn Creators Are Getting in on the NFT Craze Rolling Stone Retrieved March 30 2021 Cole Samantha March 19 2021 Building the Cockchain How NSFW Artists Are Shaping the Future of NFTs Vice Retrieved March 30 2021 Sestino Andrea Guido Gianluigi Peluso Alessandro M 2022 Non Fungible Tokens NFTs Examining the Impact on Consumers and Marketing Strategies p 34 doi 10 1007 978 3 031 07203 1 ISBN 978 3 031 07202 4 S2CID 250238540 Starr Michael April 1 2021 Activist turns anti Nazi act into commodified digital art The Jerusalem Post Retrieved October 13 2021 CryptoKitties developer launches NBA TopShot a new blockchain based collectible collab with the NBA TechCrunch May 27 2020 Archived from the original on April 30 2022 Retrieved April 9 2021 Cooper Daniel March 11 2021 NFTs are both priceless and worthless Engadget Retrieved April 9 2021 Auction of Jack Dorsey Tweet NFT Comes in Millions Below Target Bloomberg News April 13 2022 Retrieved April 14 2022 Subscription required Johnson Ted December 15 2022 Donald Trump s Major Announcement Digital Trading Cards Of Himself For Only 99 Each Deadline Retrieved December 15 2022 Washington Alistair Dawber Donald Trump NFTs net former president up to 1m The Times ISSN 0140 0460 Retrieved April 25 2023 a b c Jones Nicola June 18 2021 How scientists are embracing NFTs Nature 594 7864 481 482 Bibcode 2021Natur 594 481J doi 10 1038 d41586 021 01642 3 PMID 34145410 S2CID 235481285 Kostick Quenet Kristin et al February 3 2022 How NFTs could transform health information exchange Science 375 6580 500 502 Bibcode 2022Sci 375 500K doi 10 1126 science abm2004 PMC 10111125 PMID 35113709 S2CID 246529093 Chiacchio F et al April 15 2022 Non Fungible Token Solution for the Track and Trace of Pharmaceutical Supply Chain Applied Sciences 12 8 4019 doi 10 3390 app12084019 Cf Gayialis Sotiris P et al September 17 2022 A Business Process Reference Model for the Development of a Wine Traceability System Sustainability 14 18 3 doi 10 3390 su141811687 Bamakan Seyed Mojtaba Hosseini et al February 9 2022 Patents and intellectual property assets as non fungible tokens key technologies and challenges Scientific Reports 12 1 2178 arXiv 2304 10490 Bibcode 2022NatSR 12 2178B doi 10 1038 s41598 022 05920 6 PMC 8828876 PMID 35140251 S2CID 246700675 Cf Hasan Haya R et al July 19 2022 Incorporating Registration Reputation and Incentivization Into the NFT Ecosystem IEEE Access 10 76417 doi 10 1109 ACCESS 2022 3192388 S2CID 250710317 The paper describes the solution s various layers which include storage authentication verification blockchain and the application layer The authors focused on utilizing NFTs to protect intellectual properties Their framework is theoretical and can be improved upon by adding a programmable logic implementation using smart contracts Whitford Emma May 28 2021 UC Berkeley Will Auction NFTs for 2 Nobel Prize Patents Inside Higher Ed Retrieved January 3 2023 Sestino Andrea Guido Gianluigi Peluso Alessandro M 2022 Non Fungible Tokens NFTs Examining the Impact on Consumers and Marketing Strategies p 28 doi 10 1007 978 3 031 07203 1 ISBN 978 3 031 07202 4 S2CID 250238540 Chang Kenneth May 27 2021 You Can Buy a Piece of a Nobel Prize Winning Discovery The New York Times Retrieved January 3 2023 Trautman Lawrence J 2022 Virtual Art and Non Fungible Tokens PDF Hofstra Law Review 50 361 369 f doi 10 2139 ssrn 3814087 S2CID 234830426 a b Jones Nicola June 18 2021 How scientists are embracing NFTs Nature 594 7864 482 Bibcode 2021Natur 594 481J doi 10 1038 d41586 021 01642 3 PMID 34145410 S2CID 235481285 Tangermann Victor April 21 2022 A Harvard Scientist is Selling his Genetic Code as an NFT Neoscope Futurism Retrieved January 3 2023 a b Kanetkar Riddhi December 5 2022 The pandemic was a crisis that fueled interest in novel drug discovery methods like AI These 14 startups are predicted by investors to be future winners Businessinsider Retrieved January 3 2023 Molecule Documentation s v IP NFT Protocol Retrieved January 3 2023 rmdslab com Retrieved January 3 2023 Howcroft Elizabeth August 25 2021 NFT sales surge as speculators pile in sceptics see bubble Reuters Retrieved January 17 2022 Reyburn Scott March 30 2021 Art s NFT Question Next Frontier in Trading or a New Form of Tulip The New York Times ISSN 0362 4331 Archived from the original on December 28 2021 Retrieved May 3 2021 Small Zachary April 28 2021 As Auctioneers and Artists Rush into NFTs Many Collectors Stay Away The New York Times ISSN 0362 4331 Archived from the original on December 28 2021 Retrieved May 3 2021 Cuthbertson Anthony March 24 2021 NFT MILLIONAIRE BEEPLE SAYS CRYPTO ART IS BUBBLE AND WILL ABSOLUTELY GO TO ZERO The Independent Archived from the original on June 21 2022 Retrieved January 5 2022 subscription required Tarmy James Kharif Olga April 15 2021 These Crypto Bros Want to Be the Guggenheims of NFT Art Bloomberg Businessweek Retrieved April 29 2021 Vanek Smithj Stacey Woods Darian August 4 2021 The Origin of Value The Greater Fools Theory The Indicator from Planet Money NPR Retrieved January 26 2022 Bao Hong Roubaud David May 8 2022 Non Fungible Token A Systematic Review and Research Agenda Journal of Risk and Financial Management 15 5 215 doi 10 3390 jrfm15050215 ISSN 1911 8074 a b Owen Allison Chase Isabella December 2 2021 NFTs A New Frontier for Money Laundering Report Royal United Services Institute Retrieved December 15 2021 Study of the Facilitation of Money Laundering and Terror Finance Through the Trade in Works of Art PDF Report United States Department of the Treasury 2022 p 27 Retrieved December 15 2021 Quiroz Gutierrez Marco February 4 2022 A handful of NFT users are making big money off of a stealth scam Here s how wash trading works Fortune Retrieved December 15 2022 Crime and NFTs Chainalysis Detects Significant Wash Trading and Some NFT Money Laundering In this Emerging Asset Class Chainalysis February 2 2022 Retrieved December 15 2022 a b Littmann Saskia February 5 2022 Geldwascher entdecken den NFT Markt Wirtschaftswoche in German Retrieved December 15 2022 Coco Feng December 2 2021 China s market for NFTs metaverse may drive money laundering South China Morning Post Retrieved January 16 2022 Treasury Releases Study on Illicit Finance in the High Value Art Market U S Department of the Treasury Retrieved February 4 2022 Study of the Facilitation of Money Laundering and Terror Finance Through the Trade in Works of Art PDF Report United States Department of the Treasury 2022 p 26 Retrieved December 15 2021 Two Defendants Charged in Non Fungible Token NFT Fraud And Money Laundering Scheme March 24 2022 Reiche Matthias July 12 2022 Umgang mit Bitcoin amp Co Wie die EU den Kryptomarkt reguliert in German Retrieved December 15 2022 Schickler Jack September 2 2022 Money Laundering via Metaverse DeFi NFTs Targeted by EU Lawmakers Latest Draft Retrieved December 15 2022 Gallagher Jacob March 15 2021 NFTs Are the Biggest Internet Craze Do They Work for Sneakers The Wall Street Journal ISSN 0099 9660 Retrieved April 7 2021 I Joined a Penguin NFT Club Because Apparently That s What We Do Now The New York Times August 12 2021 Archived from the original on December 28 2021 Chayka Kyle July 30 2021 Why Bored Ape Avatars Are Taking Over Twitter The New Yorker a b EIP 721 ERC 721 Non Fungible Token Standard Ethereum Improvement Proposals Retrieved April 5 2021 Volpicelli Gian February 24 2021 The bitcoin elite are spending millions on collectable memes Wired UK EIP 1155 ERC 1155 Multi Token Standard Ethereum Improvement Proposals Retrieved April 5 2021 Gault Matthew November 18 2021 Someone Made a Pirate Bay for NFTs Vice Retrieved November 18 2021 a b c Calma Justine March 15 2021 The climate controversy swirling around NFTs The Verge Retrieved April 15 2021 Marro Samuele Donno Luca January 29 2022 Green NFTs A Study on the Environmental Impact of Cryptoart Technologies arXiv 2202 00003 cs CR Krause Max Tolaymat Thabet 2018 Quantification of energy and carbon costs for mining cryptocurrencies Nature Sustainability 1 814 doi 10 1038 s41893 018 0188 8 Gallersdorfer Ulrich Klassen Lena Stoll Christian 2020 Energy Consumption of Cryptocurrencies Beyond Bitcoin Joule 4 9 1843 1846 doi 10 1016 j joule 2020 07 013 PMC 7402366 PMID 32838201 deVries Alex May 16 2018 Bitcoin s Growing Energy Problem Joule 2 5 801 805 doi 10 1016 j joule 2018 04 016 Cuen Leigh March 21 2021 The debate about cryptocurrency and energy consumption TechCrunch De Mattei Shanti Escalante April 14 2021 Should You Worry About the Environmental Impact of Your NFTs Art News Retrieved June 2 2021 Matney Lucas March 30 2021 ConsenSys launches a more energy efficient NFT ecosystem with a project from artist Damien Hirst as its first drop Techcrunch Retrieved April 21 2021 Di Liscia Valentina April 5 2021 Does Carbon Offsetting Really Address the NFT Ecological Dilemma Hypoallergic Retrieved April 21 2021 Howson Peter April 2021 NFTs why digital art has such a massive carbon footprint The Conversation Retrieved April 6 2021 a b Kinsella Eileen April 29 2021 Think Everyone Is Getting Rich Off NFTs Most Sales Are Actually 200 or Less According to One Report Artnet News Retrieved November 19 2021 Williams Rhiannon April 2 2021 NFT digital art Would you pay millions of pounds for art you can t touch inews Technology Retrieved August 28 2021 Kwan Jacklin July 28 2021 An artist died Then thieves made NFTs of her work Wired Retrieved August 28 2021 Fake Banksy NFT sold through artist s website for 244k BBC News August 31 2021 Williams Demi January 18 2022 Voiceverse NFT admits to taking voice lines from non commercial service NME Archived from the original on January 18 2022 Retrieved January 18 2022 Wright Steve January 17 2022 Troy Baker backed NFT company admits to using content without permission Stevivor Archived from the original on January 17 2022 Retrieved January 17 2022 Henry Joseph January 18 2022 Troy Baker s Partner NFT Company Voiceverse Reportedly Steals Voice Lines From 15 ai Tech Times Archived from the original on January 26 2022 Retrieved February 14 2022 a b Beckett Lois January 29 2022 Huge mess of theft and fraud artists sound alarm as NFT crime proliferates The Guardian Retrieved January 31 2022 Hermes wins landmark lawsuit over MetaBirkin NFTs Financial Times February 8 2023 Retrieved February 10 2023 a b Schneider Tim April 21 2021 The Gray Market How a Brazen Hack of That 69 Million Beeple Revealed the True Vulnerability of the NFT Market and Other Insights artnet news Retrieved August 28 2021 OpenSea admits insider trading of NFTs it promoted BBC News September 16 2021 Retrieved November 22 2021 Clark Mitchell October 26 2021 Photoshop s new NFT button could prove you re the real digital artist The Verge Retrieved November 24 2021 Mwanza Kevin December 6 2021 New Study NFT Prices Are Manipulated by Few with Wash Trades Artificial Demand Moguldom Retrieved January 16 2022 Traders are selling themselves their own NFTs to drive up prices Engadget February 4 2022 Retrieved February 6 2022 Cox Joseph January 27 2022 This NFT on OpenSea Will Steal Your IP Address Vice Retrieved February 2 2022 Kelly Jemima January 5 2022 Matt Damon s crypto ad is more than just cringeworthy Financial Times Retrieved January 26 2022 Bill Gates says crypto and NFTs are 100 based on greater fool theory CNBC June 15 2022 Retrieved June 15 2022 Osbourne Charlie January 24 2022 Hackers hijack smart contracts in cryptocurrency token rug pull exit scams ZDNet Retrieved January 24 2023 External links nbsp Media related to Non fungible token at Wikimedia Commons Retrieved from https en wikipedia org w index php title Non fungible token amp oldid 1182795495, wikipedia, wiki, book, books, library,

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