{"id":381882,"date":"2021-12-16T16:00:28","date_gmt":"2021-12-16T13:00:28","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/heres-the-problem-with-nfts\/"},"modified":"2021-12-16T16:00:28","modified_gmt":"2021-12-16T13:00:28","slug":"heres-the-problem-with-nfts","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/heres-the-problem-with-nfts\/","title":{"rendered":"#Here\u2019s the Problem With NFTs"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a291cc275631\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a291cc275631\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-the-problem-with-nfts\/#What_Are_NFTs\" >What Are NFTs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-the-problem-with-nfts\/#%E2%80%9COwning%E2%80%9D_an_NFT\" >\u201cOwning\u201d an NFT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-the-problem-with-nfts\/#Certifiably_Crazy\" >Certifiably Crazy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-the-problem-with-nfts\/#Securing_the_Insecurable\" >Securing the Insecurable<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-the-problem-with-nfts\/#Brass_Tacks\" >Brass Tacks<\/a><\/li><\/ul><\/nav><\/div>\n<p><strong>&#8220;#Here\u2019s the Problem With NFTs&#8221;<\/strong><\/p>\n<div>\n<figure style=\"width: 1200px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"type:primaryImage wp-image-774592 size-full\" data-pagespeed-lazy-srcset=\"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2021\/12\/shutterstock_2017305779.jpg?width=398&amp;trim=1,1&amp;bg-color=000&amp;pad=1,1 400w, https:\/\/www.howtogeek.com\/wp-content\/uploads\/2021\/12\/shutterstock_2017305779.jpg?width=1198&amp;trim=1,1&amp;bg-color=000&amp;pad=1,1 1200w\" sizes=\"auto, 400w, 1200w\" data-pagespeed-lazy-src=\"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2021\/12\/shutterstock_2017305779.jpg?width=1198&amp;trim=1,1&amp;bg-color=000&amp;pad=1,1\" alt=\"&quot;NFT&quot; superimposed over a $100 bill.\" width=\"1200\" height=\"675\" data-crediturl=\"https:\/\/www.shutterstock.com\/image-photo\/abstract-glitch-word-nft-on-100-2017305779\" data-credittext=\"Cinemato\/Shutterstock.com\" src=\"\/pagespeed_static\/1.JiBnMqyl6S.gif\" onload=\"pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\" onerror=\"this.onerror=null;pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\"\/><figcaption class=\"wp-caption-text\"><span class=\"type:primaryImage imagecredit\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.shutterstock.com\/image-photo\/abstract-glitch-word-nft-on-100-2017305779\">Cinemato\/Shutterstock.com<\/a><\/span><\/figcaption><\/figure>\n<p>NFTs are all the rage among aficionados of cryptocurrency and collectors alike, not to mention those who like to try their luck on the cutting edge of tech. However, as with all things new, there\u2019s a risk with NFTs, one that can turn the cutting edge into the bleeding edge.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"What_Are_NFTs\"><\/span>What Are NFTs?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Non-fungible tokens are a type of asset that exists purely in digital form. Like cryptocurrency\u2014to which it\u2019s pretty closely related, something we go into in our full explainer on NFTs\u2014record of ownership is kept in a blockchain and a digital ledger.<\/p>\n<p>Unlike cryptocurrency, though, NFTs are one of a kind: non-fungible means that they\u2019re not interchangeable with each other. This makes each and every NFT unique, in contrast to cryptocurrencies where each unit or coin can be exchanged for another\u2014much the same goes for real-world currencies, too.<\/p>\n<p>Because an NFT is unique, it makes them a poor mode of exchange: the power in currencies lies in the fact that any one can be exchanged for any other one of the same kind. If you have two one-dollar notes in your pocket and you buy a pack of gum that costs $1, you can pay for it with either note, it\u2019s not like the store clerk is going to refuse one but accept the other.<\/p>\n<p>What makes NFTs unattractive as currency makes them very interesting for collectors, though. After all, if something is one of a kind, there is bound to be somebody that wants to own it. It doesn\u2019t matter if it\u2019s a rare coin or even a limited-edition boxed set of a popular video <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a>: rarity can make anything worth coveting.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"%E2%80%9COwning%E2%80%9D_an_NFT\"><\/span>\u201cOwning\u201d an NFT<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>However, NFTs have a weird quirk: they aren\u2019t owned outright. For instance, if you shelled out $8 million for the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.theguardian.com\/artanddesign\/2021\/jul\/15\/worlds-rarest-stamp-returns-to-britain-for-first-time-in-143-years\">world\u2019s rarest stamp<\/a>, you\u2019d own the tiny piece of paper. It\u2019d be in a temperature-controlled glass case in the library of the massive mansion we assume millionaire collectors own.<\/p>\n<p>This stands in sharp contrast to NFTs, which aren\u2019t owned. For example, Malaysian businessman Sina Estavi bought <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> founder Jack Dorsey\u2019s <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/redirect.viglink.com\/?key=204a528a336ede4177fff0d84a044482&amp;u=https%3A%2F%2Fwww.bbc.com%2Fnews%2Fbusiness-56492358\">very first tweet<\/a> for almost $3 million. Here\u2019s a copy of that tweet.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" alignnone wp-image-717461 size-large\" data-pagespeed-lazy-src=\"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2021\/03\/jack-dorsey-tweet-650x300.png?trim=1,1&amp;bg-color=000&amp;pad=1,1\" alt=\"Jack Dorsey's first tweet.\" width=\"640\" height=\"295\" src=\"\/pagespeed_static\/1.JiBnMqyl6S.gif\" onload=\"pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\" onerror=\"this.onerror=null;pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\"\/><\/p>\n<p>Now, it\u2019s not like How-To Geek had a couple million bucks laying around and bought the tweet from Mr. Estavi, or even licensed it from him. We just copied the tweet and then uploaded it to our own site. You could do the same: just right-click, hit \u201cSave Image,\u201d and you\u2019re the proud owner of a poorly spelled tweet. You wouldn\u2019t be breaking any laws or anything.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"Certifiably_Crazy\"><\/span>Certifiably Crazy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This is because Mr. Estavi doesn\u2019t actually own the tweet, he owns a certificate of authenticity that states he is the owner of the tweet. In real-world terms, it\u2019s like buying the deed for a house but not the house itself\u2014and you paid the same for the deed as for the house.<\/p>\n<p>So, when you read that somebody \u201cowns\u201d an NFT, they don\u2019t actually own it, they just bought one of these certificates. And what exactly your legal rights are as an owner of one are unclear, at best.<\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/richtfirm.com\/\">Harry Richt<\/a>, a lawyer based in New York City told us via email that by default the author of an NFT retains all the exclusive rights to it, though that can be changed in the specific license granted for the NFT.<\/p>\n<p>Another lawyer we spoke to, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/dilendorf.com\">Max Dilendorf<\/a>, also from New York, said much the same, emphasizing that the intellectual ownership of NFTs is \u201ca contractual question, depending on the platform\u201d you buy the NFT from.<\/p>\n<p>According to this paper from the Cypriot law firm of <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/hadjikyprianoulaw.com\/news-insights\/digital-technology\/non-fungible-tokens-nfts-opportunities-and-legal-challenges\/\">G.C. Hadjikyprianou<\/a> the same issues exist in the EU, so it\u2019s not like it\u2019s any more definitive on the other side of the Atlantic.<\/p>\n<p>As a result of the legal no man\u2019s land that NFT\u2019s exist in, you can do whatever you want with them, even if you never paid for them. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/slate.com\/technology\/2021\/11\/nft-image-ownership-right-clicking-saving-copying-trolling.html\"><i>Slate<\/i><\/a> ran an article recently going over all the shenanigans people have been up to with these tokens.<\/p>\n<p>For instance, there\u2019s nothing stopping you from copying an image from the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/boredapeyachtclub.com\/#\/\">Bored Ape Yacht Club<\/a>, a club of NFT owners which includes millionaire celebrities like Post Malone or Jimmy Fallon. You won\u2019t be in the club, but you can thumb your nose at some rich people, which is fun.<\/p>\n<figure style=\"width: 300px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-774413 size-medium\" style=\"color: #333333; font-size: 15px;\" data-pagespeed-lazy-src=\"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2021\/12\/BAYC-pizza-300x300.png?trim=1,1&amp;bg-color=000&amp;pad=1,1\" alt=\"Bored Ape Yacht Club\" width=\"300\" height=\"300\" data-crediturl=\"https:\/\/boredapeyachtclub.com\/#\/home\" data-credittext=\"Bored Ape Yacht Club\" src=\"\/pagespeed_static\/1.JiBnMqyl6S.gif\" onload=\"pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\" onerror=\"this.onerror=null;pagespeed.lazyLoadImages.loadIfVisibleAndMaybeBeacon(this);\"\/><figcaption class=\"wp-caption-text\"><span class=\"imagecredit\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/boredapeyachtclub.com\/#\/home\">Bored Ape Yacht Club<\/a><\/span><\/figcaption><\/figure>\n<p>We took this from the Bored Ape Yacht Club site, for example. Sure, they might get angry with you, but there\u2019s precious little they can do except complain at you on Twitter.<\/p>\n<p>(<em>Editor\u2019s note<\/em>: Of course, images are protected under copyright whether they\u2019re NFTs or not\u2014but, as we are including the image in this article to comment on the image itself, this is covered under fair use.)<\/p>\n<p>In fact, one enterprising soul even <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.indiatimes.com\/technology\/news\/you-can-download-every-nft-art-on-this-portal-inspired-by-the-pirate-bay-554712.html\">set up<\/a> the NFT Bay\u2014clearly a wink at torrenting hotspot The Pirate Bay\u2014where you can upload and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">download<\/a> whatever NFTs you\u2019d like. We doubt NFT owners are thrilled, but, lacking a legal framework, there\u2019s little they can undertake to stop it.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"Securing_the_Insecurable\"><\/span>Securing the Insecurable<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It\u2019s not just people capitalizing on the obsession with NFTs that are ruining the fun for aficionados, either, there are also some legitimate security concerns when it comes to the digital tokens, issues which have seen them banned from Steam, for example.<\/p>\n<p>For example, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.vice.com\/amp\/en\/article\/v7mw7b\/nifty-gateway-hacked-nfts\"><i>Vice<\/i><\/a> ran a story about an NFT platform that was hacked somehow. It\u2019s unclear if the site itself was insecure or if the users in question fouled up, but the upshot is that millions of dollars worth of NFTs were stolen. (Is it theft if you never owned it in the first place?).<\/p>\n<p>However, there\u2019s a second issue, one that\u2019s more serious yet also oddly hilarious. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.theverge.com\/2021\/3\/25\/22349242\/nft-metadata-explained-art-crypto-urls-links-ipfs\"><i>The Verge<\/i><\/a> goes into a lot more detail, but in short, your certificate of authenticity isn\u2019t a certificate as much as a link to a record of your purchase. If the server the links points at goes down, your proof of ownership disappears and you won\u2019t be getting it back.<\/p>\n<p>In essence, there are people out there who\u2019ve put millions into a digital asset that are just one server malfunction away from being wiped out completely. Though we\u2019re no financial experts\u2014the fact that we\u2019re tech writers should serve as evidence of that\u2014entrusting your fortune to some under-caffeinated server technician doesn\u2019t seem like wise estate planning to us.<\/p>\n<h2 role=\"heading\" aria-level=\"2\"><span class=\"ez-toc-section\" id=\"Brass_Tacks\"><\/span>Brass Tacks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When you add it all up, NFTs seem more like a membership card than anything else. Owning one is like a badge that you belong to a group: maybe it\u2019s just a few people really into sharing a specific piece of art, or maybe it\u2019s to show off that you have money to burn\u2014the ultimate aim of\u00a0 conspicuous consumption throughout the ages.<\/p>\n<p>NFT is no more than a stamp to a philatelist (stamp collector): where most see a colored piece of paper, stamp collectors see value. Where you or I see a bit of code, NFT collectors see something worth having. In a way, it\u2019s just aficionados securing bragging rights, and the value of any NFT is dependent on how valuable it has been made to <i>seem<\/i>. Though you could wade in for yourself and see what all the fuss is about, if you ask us, the only winning move is not to play.<\/p>\n<\/div>\n<p><script>\n setTimeout(function(){\n  !function(f,b,e,v,n,t,s)\n  {if(f.fbq)return;n=f.fbq=function(){n.callMethod?\n  n.callMethod.apply(n,arguments):n.queue.push(arguments)};\n  if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';\n  n.queue=[];t=b.createElement(e);t.async=!0;\n  t.src=v;s=b.getElementsByTagName(e)[0];\n  s.parentNode.insertBefore(t,s) } (window, document,'script',\n  'https:\/\/connect.facebook.net\/en_US\/fbevents.js');\n   fbq('init', '335401813750447');\n   fbq('track', 'PageView');\n  },3000);\n<\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more like this article, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/technology\/\" target=\"_blank\" rel=\"noopener\">Technology category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/www.howtogeek.com\/774410\/heres-the-problem-with-nfts\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Here\u2019s the Problem With NFTs&#8221; Cinemato\/Shutterstock.com NFTs are all the rage among aficionados of cryptocurrency and collectors alike, not to mention those who like to try their luck on the cutting edge of tech. However, as with all things new, there\u2019s a risk with NFTs, one that can turn the cutting edge into the bleeding&#8230;<\/p>\n","protected":false},"author":1,"featured_media":381883,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.howtogeek.com\/wp-content\/uploads\/2021\/12\/shutterstock_2017305779.jpg?height=200p&trim=2,2,2,2","fifu_image_alt":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-381882","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/381882","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=381882"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/381882\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/381883"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=381882"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=381882"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=381882"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}