Since NFTs started to get popular, many people as well as myself began to make questions about their validity and reliability. apart from that, there have always been concerns about how much energy would the NFT market and its Blockchain Transactions need in the future? Apart from the environmental concerns and thinking about how much carbon footprints do NFTs leave behind, the main concern is if the proof of ownership of an NFT is an acceptable term in Judiciary.

Legal Concerns

As in many other markets, fraud and plagiarism also happen in NFT markets. People can simply right click and save a piece of JPEG file or recreate an idea without having the permission of the owner or the creator. Creators can sell their art as a limited edition NFT, but still, there is no legal action that can stop them from recreating the same piece of art. All in all, the proof of ownership loses its meaning at this point. Nevertheless, we can see how the NFT market has kept its value, and it’s even rising and expanding. How’s that even possible? As humans start to trade and make communities, there’s a hidden factor involved behind their actions which we call game theory. Trading is like playing a game, being in a game as a trader or a creator. A creator doesn’t want their art to lose its value. The buyer also has the same objective. Therefore, they must play such a game fairly and respectful to the self-made rules that make it possible to trust and trade. A maximum profit is only possible by making the market a safe place to trade. So, the majority of the people would prefer a steady way of earning money than a pocket full of fake or stolen NFTs, because we have learned how to play this game before.

As the author, I’m so optimistic about the future of NFTs. Because like the free markets which regulate themselves by their players, the NFT market would go through the same path and grow as people try to make it a safe and more reliable place.

Posted Using LeoFinance ^Beta