NFT trapped in a paradox circle

Guide

  • The use value of NFTs and physical collections are quite different, and the ownership rights are quite limited.
  • NFT has created a fiery financial market, and the underlying value and artistry of digital assets have been obscured by interests.
  • From secondary creation to direct theft, from digital artwork to tweets, theft in the NFT market is still rampant.
  • When the same digital asset can be uploaded on different chains, the non-homogeneity and exclusivity of NFT will be challenged.
  • NFT lacks the protection of legal enforcement means, and the anonymity of the blockchain makes it very difficult to protect the rights of NFT.
  • Encrypted currencies have moved closer to supervision under the measures taken by various countries to combat money laundering, and NFTs may eventually be regulated by the fate.
  • The internal contradictions of virtuality and decentralization, as well as the external contradictions of speculation, make NFT stay on the impossible ladder.

After the concept of NFT has been implemented, many people seem to have seen the savior of digital assets in a mixed virtual world. Since the Internet was used by a large number of consumers in the mid-1990s, the Internet and copyright issues have been debated for more than 20 years. On the one hand, the Internet breaks the physical limitations of time and space, allowing various digital assets such as music, paintings, novels, etc. to attract a large number of audiences with unprecedented proliferation, but on the other hand, the zero-cost reproducibility of the Internet exposes digital assets Under various acts of theft and plagiarism.

The traditional copyright protection law can play a leading role in the physical world, but when applied to the virtual network world, it becomes stretched. At the same time, Amazon and other large technology companies monopolized the sales of virtual digital works, and various original authors failed to reasonably allocate their due profits. At this time, NFT came head-on with a new solution.

NFT (Non-Fungible Token) is a non-homogeneous token. By taking a specific digital asset or physical asset as a digital unit, and creating a series of identifiable data blocks and storing it on the blockchain, it is traceable and non-tamperable. Of tokens. Non-homogeneity means irreplaceability and uniqueness, so NFT can be used to verify ownership and allow transactions and sales on the digital market. It should be noted that NFT usually owns the ownership and does not grant the buyer copyright.

“Ownership refers to the owner’s right to possess, use, benefit from, and dispose of his own property in accordance with the law. Ownership is the most important and complete right of property rights, which has three characteristics: absoluteness, exclusivity, and sustainability. , The specific content includes the four powers of possession, use, profit, and disposal.

Copyright, also known as copyright, includes the following personal rights and property rights: publishing rights, authorship rights, modification rights, protection of the integrity of the work, reproduction rights, distribution rights, rental rights, exhibition rights, performance rights, projection rights, broadcasting rights, and information network dissemination Rights, filming rights, adaptation rights, translation rights, compilation rights, and other rights that should be enjoyed by the copyright owner. “

Simply put, NFT has the following advantages:

1. As a non-homogeneous token, it provides a unique proof of property rights for digital assets and realizes the integration of data and assets.

2. Digital art creators can make a profit every time they change hands, which better protects the rights of creators.

3. NFT can be combined with smart contracts, which is more convenient than physical assets in terms of promotion, transaction, payment and delivery.

NFT has a wide range of application scenarios, including proof of tickets and real estate certificates in daily life, and can also provide proof of ownership for digital assets. At present, NFT is more used in the field of games and encrypted artwork. This article will focus on the application of NFT in the digital art track and discuss various issues that have emerged at this stage.

Platonic collection

If you have a pair of Van Gogh’s “Sunflower”, the owner can hang it on the wall and let the bright chrome light up the entire hall. You can also admire the flowers blooming like burning flames up close, and no more in the world. No one can own this authentic painting like him. The uniqueness and scarcity make owning this painting an extraordinary satisfaction. This is the physical and psychological value of owning collections.

But when I have a valuable encrypted punk avatar NFT, a low-pixel avatar full of rock and heavy metal temperament, I can enjoy the same visual experience as the public, and anyone can download and use it at will. Therefore, the meaning given to collectors by NFT is not in use value, but in value on a psychological level. The meaning of NFT is to have the sole ownership of digital artwork. This mechanism directly establishes a connection between creators and collectors, just like getting a handwritten message and autographed photo by an idol. This emotional connection is unique and impossible. Replacement. The emergence of NFT has shaken our traditional perception of “owning” collections. Compared with other physical collections, owning NFT is more like pure platonic love pursuing spiritual communication. If this is a more advanced and purer respect and love for digital art, it is very beautiful.

In addition, NFT can materially satisfy the owner’s exports with less, mainly relying on issuance and transfers for profit. Although the rights of NFT owners are limited, the wild growth of NFT and the ever-high NFT auction prices tell us that things are not simple. A large number of speculators sniffed new business opportunities, gathered in groups and stared at them, constantly looking at the NFT market, and are ready to share the benefits from it at any time.

According to nonfungible statistics, in recent years, NFT sales have fluctuated within a certain range, but sales have experienced unprecedented breakthrough growth since July 2021. In contrast, the tendency of prices to push up the value of NFTs is very obvious. On the one hand, as more well-known artists and industry leaders join, the quality or popularity of NFTs will increase. But on the other hand, the frenzied increase in prices is indispensable to the stacked bubbles.

NFT sales

NFT trapped in a paradox circle

Total NFT sales

NFT trapped in a paradox circle

Data source: nonfungible

NFTs and digital assets are full of contradictions. On the one hand, the ownership of digital art goes from nowhere to be named after the name. The logic of unlimited copy and paste in the digital world is overthrown from the bottom, and the value of digital art begins. Being faced squarely by people. But on the other hand, there is always a gap in use value between virtual assets and real assets. Pure lovers are limited, but speculators are hustling. The issuance and resale of digital assets has made the NFT market a hot financial market, and the underlying value and artistry of digital assets have been obscured by interests.

Crazy and meaningless copyright infringement

At present, Opensea is the largest NFT trading platform. From creation, issuance, trading, to transfer, the closed-loop process of creating NFT can be completed in one stop. The degree of freedom is high and the threshold is low, but theft is also rampant.

In July of this year, when the Sichuan mine was cleared and retired, a photographic photo titled “Summer Dora with a Mining Machine” became popular on the Internet. In the photo, the expressions of Tibetan women are full of narrative, the cables in their hands resemble wheat ears, and the whole picture is full of warm yellow tones, and the rich colors of Tibetan costumes are dissolved in it. This picture recorded the historic moment of the closure of the Sichuan mine with a very artistic atmosphere, and it is reminiscent of the French painter Jean Francois Millet’s “Gleaner”.

NFT trapped in a paradox circle

But soon, after the second creation, this photograph was named “The Woman Holding Bouquet”, and it was uploaded to Opensea in the form of NFT. The painting style of the second creation draws on the stained glass of the church, which adds a religious and mysterious atmosphere to the original painting. The painting was fired up to 2021 ETH . The original image is from the article “Development | China Says Goodbye to Bitcoin Mining” by Caixin, and the second creation is by a mysterious creator whose account name is username2021, and the original creator’s consent was not obtained in the process.

NFT trapped in a paradox circle

This kind of secondary creation without the consent of the creator, or even direct copy and production for NFT profit is not rare. A digital artist with the pseudonym Weird Undead, after publishing multiple digital paintings, discovered that his work was stolen and made as an NFT for sale on OpenSea . Weird Undead and her fans subsequently submitted a series of legal notices to OpenSea. It is reported that the imitators of Weird Undead have been using the ID called Tokenized Tweets to sell the creator’s work. Weird Undead called this a “crazy and meaningless copyright infringement”

NFT trapped in a paradox circle

In addition to encrypted artworks, the tweets of some big names in the encryption industry have also been secretly made into NFT auctions . Since Twitter CEO Jack Dorsey auctioned his first tweet and sold it at a high price of $2.9 million, many thieves have begun to extend their grip on the Twitter of some celebrities. These include Meltem Demirors, chief strategy officer of CoinShares, and Neeraj Agrawal, chief communications officer of Coin Center. These big coffees have expressed their dissatisfaction and concern on Twitter.

” “The NFT crowd…behave completely like a cult”

“I have never received such strong opposition before, and I have always been very outspoken on very intense topics such as Trump, racism and sexism.”

A well-known international visual artist who has written several graphic novels said in an interview with ABC Science News that he had been harassed online for refusing to sell his work in the form of NFT.

From secondary creation to direct theft, from digital artwork to tweets, rampant theft reflects the dark corners of the bright future of the NFT market. These corners are the carnival places for thieves who are called “protect originality and respect copyright”, but they are also accompanied by the worries, anger and even fear of the original creators. When the thief is the first to make NFT work that does not belong to him, it is repeatedly banned, where are the original creators placed? When the original creator uses his own work again, he is treated as an imitator. Isn’t this the sorrow of NFT?

Although NFT theoretically provides a channel to prove ownership for digital artwork, it lacks a mechanism to verify the correctness of the source. “Impatient” seems to be the defect of this rapidly developing market, and even the time and cost of verifying the authenticity and certainty of the source are unwilling to pay. Opensea, as the largest NFT market, cannot solve the problem of pirated artworks for the time being.

The foreseeable fate of NFT being regulated

At present, each digital asset can generate a unique hash code, stamp it with a time stamp, upload it to the blockchain and anchor it to the Ethereum public chain to complete the certification. Most of the NFTs are carried out on the Ethereum chain public square. However, with the development of blockchain technology and the growth of different public chains, if the same digital asset can be uploaded on different chains, the non-homogeneity and exclusivity of NFTs will be challenged. Imagine that when two or more people hold real estate certificates for the same property issued by different agencies, the credibility of such certificates will inevitably be greatly reduced. NFT is also, non-homogeneity endows the uniqueness of its underlying assets, but when this homogeneity is broken, then the issue of the right of digital assets regresses to the original point.

In addition, as a decentralized ownership protection mechanism, NFT lacks the protection of legal enforcement means, and due to the anonymity of blockchain accounts and wallets, it is very difficult to safeguard NFT rights. On the one hand, NFTs are likely to be resold to countries that lack intellectual property protection, so NFTs are out of legal restraint and protection; on the other hand, copyrights that do not belong to NFT owners are also difficult to be restricted. Rights need a complete protection mechanism.

In addition, due to the anonymity of the blockchain, the NFT market can easily become a hotbed of money laundering. Criminals can use the stolen money to buy NFTs and transfer money to complete money laundering. Such a market with huge market volume and extremely high privacy makes it difficult to trace the flow of stolen money. Cryptocurrency has moved closer to supervision under the measures taken by various countries to combat money laundering. NFT is afraid that the fate of being supervised will eventually be inevitable. Therefore, the supervision era of NFT is predictable.

The contradiction between decentralization and centralization has always existed since the beginning of the blockchain, but at least for now, decentralization has not won, especially in China. We can turn our attention to the NFTs launched by Alibaba and Tencent, which are based on the AntChain and TrustChain that meet regulatory requirements, respectively, and provide ownership verification for encrypted digital assets while retaining the traceability and immutability of the blockchain. But it is worth noting that these NFTs have made restrictions on the liquidity, such as raising the auction threshold and increasing the holding time to limit hype. Such a centralized NFT market may be the model for future development.

NFT on the impossible ladder

The Impossible Ladder, also called the Penrose Ladder, is a well-known geometric paradox. This paradox describes a ladder that cannot exist in real life. Each ladder seems logical, but when connected together, it becomes incredible. The highest or lowest point can never be found on the ladder. Whether you go up or down, you are always trapped in an infinite loop. The mystery of this paradox actually comes from a fault in a certain direction. Due to visual errors, the turning point of the ladder connects the ladders of different levels, and finally leads to an infinite loop on one level.

In real life, this paradox also occurs. The fault in reality refers to the fact that the development of a certain stage cannot be connected to the next stage, and finally causes things to fall into an infinite repetition and stand-in phenomenon. The cause of the fault can be endogenous or exogenous. It seems that NFT has also fallen into such a strange circle. It was originally designed to build a ladder to digital assets. However, the internal contradictions of virtualization and decentralization, as well as the external contradictions of speculation, have caused faults to appear, making it impossible to reach the next. A level of breakthrough.

Although there are many contradictions in NFT, the NFT craze has brought many issues worthy of discussion back to the table, the meaning of digital assets that are rarely mentioned, the age-old problem of the Internet and ownership, and the contest between decentralization and centralization. It is undeniable that NFT has given answers to the thinking and solving of these problems. Maybe this answer is not mature enough or comprehensive enough, but NFT is indeed exploring and verifying with practice.

Author Chen Lishan

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/nft-trapped-in-a-paradox-circle/
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