NFT and you, all about it?

The wave of time is called not a fungible token (NFT) – inside Portuguese, non-fungible token – but do you know what it is and what it is? And what are the implications and benefits? If you do not know, I will explain here a bit, and it connects with the “metaverse”, in addition to explaining what it is legally.

First, it is necessary to point out that NFTs are the digital representation of something that can be seen or invisible (which we can touch or not), but as the name suggests , it is unique and can not be replaced by others.

Because it is a digital representation of something, it can divide something into tens, thousands or thousands of places. It could be a digital representation of an image by Pablo Picasso, as it could be original lyrics of a song by the band Mamonas Assassinas or an animation, a picture or part of a work and even part of the rights embodied in them (the rights relating to or to obtain money for the work).

It can also complete the artwork, store it in a digital wallet, and enjoy it by its owner or print it on his website or any other place he wants, like the picture in below which is one of NFTs which I have and it is called my little pony, that is, business rights belong to me, but not rights. Commercial law is the right to use images, the moral law is the right that the creator of the work should, at any time, say that he is the creator.

Because they can not be traded, they are goods, let us say, “collect”, and since they were written, they have a monetary value, and therefore can be sold, rented, exchanged and donated free.

But how do they become infungible?

Tokens are digital representations that are connected in a blockchain chain, that is, they are a type of cryptocurrency. There are several chains blockchain, such as Ethereum, Tezos, Chain and many others that can be used to create NFT. The most commonly used is the Ethereum.

How does NFT design work?

It is fully encryption. In a very simple way, when a non-fungible token is generated, it receives a code in the blockchain chain using, for example 0000232323. Required, the next block in in the chain (something comes later and that is not required. one NFT) would be 0000232324, and the other 0000232325 etc., which prevents fraud of any kind because it can not provide some things before or after. And in this token there is information about what was bought: the name of the creator, the date of creation, the name of the job, the price and other information that was placed in the token. token by the creator.

NFT

Issues related to NFTs

Like everything designed and developed by a blockchain network, NFTs are not regulated or monitored by an organization or even a government. The user buys and uses at his own risk. It is very speculative, as the price and the value can change without any reason or reason.

The NFT below I created and is selling for 20 dollars. Hu love dogs. But I can pay $ 1 million. What is one will? Are there any problems? There is no. I give the price I want and if someone buys it, it is better for me, but when it sells I can no longer use it and I can not create another similar one.

Many people buy these digital assets as a risky investment, spending money on something that can be “all scam” but also “master move”. if the product is happy.

An example is the NFT description of the first tweet posted by Twitter founder Jack Dorsey, which sold for $ 2.9 million, and has now been offered for $ 40 million, but has not yet reached $ 10,000 in consensus. tw.

Other forms of NFT include weapons and other items purchased online. It is possible to purchase a variety of electronic sports equipment to improve the performance of the player or team, and if necessary, they can be sold in the future to anyone. needs. Rarely does anyone remember, but there is a case in the game Two Lives where an avatar is sold for 1 million dollars. Many people play for more than 20 hours straight to the avatar and sell it.

Recently, the game F1 DeltaTime, which, according to NFTs, get out of the air right away, leaving a lot of people buying cars, cars, tires and so on. on the other hand, since the product will be useless as well Can not be sold or reused.

Let it be clear: are speculative products. Its creator or owner can put it up for sale at any price he wants. In addition, there are risks affecting its design, as well as famous works of art or well-known products and even the self can not be used for NFT design without permission by the owner of the rights.

That means I can not create NFT from the Nike collection, for example, with all the Michael Jordan shoes and put them on sale. I am not allowed to use the design of sneakers and I am not allowed to use the Nike brand or brand associated with Michael Jordan, for example.

I can not create one either. Neymar’s NFT wear different jerseys of the team he plays for, because there are two rules involved. Neymar privacy rights, defended in paragraphs 11 and 12 of the Civil Code. And from the scores of football teams, type II of the figure. 130av The law provides for housing determines that only holders of the symbol can authorize its use. In other words, it is possible to create these NFTs, but only with permission.

However, I was able to create NFT on an art form that was no longer legal, with protection as long as the author was still alive, and added for another 70 years from The First. 1st month of the year after the founder dies, according to art. 41o ib Copyright Law. Thus, a picture by Van Gogh, a sculpture by Aleijadinho, or Mona Lisathey can become NFT, but then it is a matter of knowing who will want to buy.

What if you bought an NFT that Nike had not authorized to use its name, and the company filed a lawsuit claiming that any digital representation of its product was restricted from resale and removal of business platform? It is difficult to dispose of these items because they can be stored anywhere, but you will not be able to sell them in the future, or if you do, you will be fined or damaged. surplus. Is the risk worth the risk? Probably not.

Now, if I buy NFT of a digital art project licensed with a licensed developer, I am sure that the project is mine and there is no risk that it should be withdrawn out of the way, and if I sell it I will not I risk having to pay the buyer because I am selling an unlicensed business. Before buying NFT, consider all the risks involved and whether it is worth the investment. If necessary, “send the bullet”!

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Rofis Elias Filhocolumnist for TecMundo, is a geek and lawyer, passionate about technology since he was young. He was the first in the field of home internet access, in 1994, and specialized in Computer Law in Brazil and Portugal. Today, he is a professor of the same subject at several universities, having served as dean of graduate studies at ESA / SP. He is a partner of Elias Filho Advogados, who works for various technology companies in Brazil and abroad. Follow the press for more information: @eliasfilhoadv.

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