I can’t touch any NFT with my finger and I don’t advise you either

In the 90s, when Poland was going through its biggest economic transformation, there was a smart company that sold seeds / powder in jars to people. People had to keep these jars at the right temperature, grow something or “produce” something there, and the sales company promised to take back the jars after the agreed time. Many people who have heard about the potential savings have bought miracle jars. It is not necessary to write how the history of investors in the jar ended.

How did people follow this scam? Big profits promised in the future, investment elitism due to limited banks and limited stakeholders? Was it based on human stupidity? It was probably a combination of everything at once.

It’s the year 2022, and people are getting thousands, sometimes tens of thousands of dollars of NFT for digital works that are more like cartoons. Thus, “re-painting” pictures from the board by children in kindergartens was created during the first grade.

Come back … they don’t take pictures themselves, they take a plate that they have. A digital record called a token, ie NFT.

NFT is a sign, irreversible and unthinkable. No one understands anything, maybe wikipedia will help:

Sports trading cards are unique digital (or real, blockchain) assets that represent a wide range of tangible and intangible assets, such as virtual real estate or virtual artwork.

Still not clear to you? I will describe it in my own words. NFT is a record in the so-called blockchain register (a unique sequence of zeros and ones). The record is unique, unique and no one else will be able to create such a record. This entry indicates whether you own a digital or even physical object, enter a club, and so on.

The problem is that only the record itself is unique. NFT does not in itself imply that we have any copyright in any related asset. So we have a record that we have a digital product, but this record does not prove that we own it and that we have the right to it.

So you understand what NFT is and why, don’t you? For example, I do not understand. People who are deceived by NFT because someone sells their digital works as NFT do not understand this.

Imagine that someone steals graphics from the author with his works. He then creates NFT for them and sells them on a reputable stock exchange like Opensea. What will happen next? I will mention this in the paragraphs:

  • No one confirms that the creator of NFT has the right to these digital products
  • NFT is sold along with the stolen works
  • The exchange receives a commission
  • The buyer thinks he’s getting something original, because he has a unique NFT record, doesn’t he?

Now I will suggest another scenario. The same creator of digital art steals the same pictures again, but another thief. The thief re-creates NFT for digital images and resells it on some NFT exchange. And do you know what happens? As for the first time.

Why? In itself, NFT is unique, nothing related to it is controlled. So you can sell for 100 NFT per picture / product. NFT protects nothing and nothing because there is no way. In the process of developing NFT, no one controls copyright, licenses or ownership.

Grzesiek, why is this because I don’t understand anything? (I’m talking to myself)

– Exactly – you do not understand, this is a problem (and he hired himself in the technology service) !!! In the future, some musicians or artists will sell their works only through NFT !! It will stop at Web3 blockchain and everything can be converted to NFT. Your comment can now be sold as NFT, your photo, your mother-in-law’s photo, or your internet meme. Without a wallet for cryptocurrencies and NFT, you will not enter the pub because instead of checking tickets or reading the QR code, they will be checked by your NFT?

– So you want to tell Grzesiek that instead of checking whether I am on the list or reading the QR code in my invitation, the owner of the tavern will make NFT with invitations and I have to take them? When you first buy cryptocurrency?

– Don’t smoke … and you don’t understand. I want to say yes, it will be, but it will be simpler and safer. Jesus … how can I explain this to you …

– Come on, I understand, because, as you can see, when it comes to all these technologies, I’m a little behind

– Well, yes – the owner can invite 100 to the club and sell them as NFT, he will win a ticket in cryptocurrencies.

– So I will pay for drinks in cryptocurrency and NFT?

“Fuck … you don’t understand.” for input only.

– Then why can’t I pay normally?

“Jesus, how far behind you are, you don’t understand that in the future … well, I have no words.”

Do you understand now?

If you still don’t see the potential, others will. They sell everything they can in the form of NFT. As long as there are buyers and they do not ask tough questions, everything turns. What’s worse is that after 2 years, if the buyer realizes that the picture he bought is not worth $ 2,000, no one will want to take it back, and you do not know if you really have the right to do so. In addition to the unique NFT rights associated with the image.

Why is all this possible? All work in NFT is to buy and use cryptocurrencies. Didn’t I mention that you need a cryptocurrency wallet to buy or create your own NFT? It is important to have one rotation, and then all of them are assigned some theories, such as NFT and the like. Maybe NFT 2.0 will be created at some point?

Seriously

Such a digital property certificate would be useful today if it were realistic to verify property rights and copyright.

For today you can play with NFT in some special cases, for example (extract from the press release):

The Australian Open kicked off yesterday and will be the first major sporting event to take place in the virtual world. The tournament will sell more than 6,000 non-transferable tokens (NFT) in the form of unique tennis balls – of course, digital, and their buyers will be able to win the ball in the real world.

An example from the Australian Open shows how NFT can be used. It was used as a lottery ticket, there is a real physical ball to win. These virtual people will stay and maybe value something in 10 years … But the real ball wins.

In this example, the NFT switch served as a lottery ticket. But it was faster, easier, easier to organize …? Answer your question yourself. Yes, you can imagine a useful NFT in a tightly controlled circuit, where we use and get clear benefits.

NFT can be the cure for everything and the solution to many problems in the future, but it must work with the law to keep up. In the future, this solution could be very useful if NFT is in fact a legally certified certificate of ownership. The only question is whether this is possible and whether the existing decentralized technology is able to support ownership and copyright control?

Finally – worth remembering!

Not NFT:

  • This is not proof of ownership.
  • This is not copyright recognition.
  • No one controls property and rights in the process
  • Anyone can create NFT for everything
  • The whole shopping process is actually a free American

Today, NFT is almost the perfect environment for scammers, thieves and fraudsters. If there is no known, stable and reliable partner behind NFT, I sincerely advise you to stay away (although I would double check the value of what you want to sell).

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