On October 14, under the guidance of the International Institute of Technology and Economics of the Development Research Center of the State Council, China Mobile Communications Federation, Beihang University Digital Society and Blockchain Laboratory, China Communications Service Co., Ltd. Shandong Branch and other units jointly issued the ” Non-Homogeneous Rights (NFR) White Paper-Application of Blockchain Technology in Digital Rights (hereinafter referred to as “White Paper”). The “White Paper” is co-edited by Professor Cai Weide, Director of the Digital Society and Blockchain Laboratory of Beihang University, and Lawyer Zeng Wenwen, a partner of Beijing Tianyuan Law Firm.
The “White Paper” pointed out that the development of the digital economy urgently requires the establishment and protection of digital rights. The development of NFT has multiple issues such as technology and law, and non-homogenized rights (NFR) is expected to become a compliance method for exploring digital rights confirmation, storage, transfer, and circulation. The core advantage of NFR is that it has a legal regulatory framework, which can be implemented by technology and empowered by the legal framework. NFR has created new distribution, authorization, and commercialization channels for works of art, performance rights, brands, or other valuable properties.
Continue to ignite the art market NFT faces multiple problems
The “White Paper” believes that the booming NFT (non-homogeneous token) market illustrates the strong demand for digital development in many fields represented by artworks. NFT is a manifestation of the digitalization of culture and art, a product of encrypted digital technology, and an inevitable trend of the development of the times, and its continued popularity has its inherent reasons.
According to reports, due to the low liquidity of assets such as artworks and collectibles, there will be situations where there is no market for prices. When funds are needed, they can only be sold at a price far below the market value. It is a dilemma for collectors and art workers. NFT can solve this problem, making digital versions of artworks easier to trade. Digitization can increase liquidity, and liquidity increases transaction volume and market value.
The “White Paper” stated that in a positive sense, NFT can be regarded as a digital means for the literary industry. Whether it is painting, music, games or novels, it can be digitized, and the digitized product can be digitized 365 days a year. Transactions are carried out 24 hours a day without time limitation, 7 days a week, which greatly increases the liquidity and industrial value of artworks, can revitalize the entire art and collectibles market, and brings new business models, leading to active markets.
At the same time, the “White Paper” also pointed out that NFT also has multiple problems such as technical and legal issues. For example, NFT violates the existing domestic laws and regulatory requirements; if China uses the NFT agreement, there will be huge regulatory problems and financial risks; NFT lacks legal protection, and there is no complete certification mechanism; the NFT market does not have a standardized regulatory mechanism.
Possess a legal regulatory framework NFR has great potential for domestic development
The “White Paper” proposes that the model and path of NFR development in China have become a compliance means for exploring digital rights confirmation, storage, transfer, and circulation. NFR is a digital asset or a digital representative with unique asset ownership. NFR uses blockchain technology and is created on the basis of computer code to record the digital ownership of basic physical or digital assets and constitute a unique certificate of authenticity.
It is understood that in theory, any unique asset, including intangible assets and tangible assets, can be used as the basic asset of NFR. In particular, this model creates new distribution, authorization, and commercialization channels for works of art, performance rights, brands, or other valuable properties.
“White Paper” believes that NFR and NFT are completely different and represent a new combination of art and technology. NFR solves the problems of NFT, such as not using any digital tokens or related agreements; not using any public chain system; improving the real-name authentication mechanism and complying with relevant laws and regulations.
At the same time, the core advantage of NFR is that it has a legal regulatory framework, which can be implemented by technology and empowered by the legal framework. NFR has multiple advantages such as accelerating the close integration of physical and virtual environments, boosting the real economy, using interconnection technology, and strict digital asset governance.
The “White Paper” believes that there will be a large number of cultural activities and literary products in Metaverse, so NFT is an important puzzle of Metaverse. The NFR proposed in this white paper is more extensive than NFT. Due to its own identity authentication and supervision mechanism, there will be greater development in the compliance meta-universe. For example, NFR plus compliant digital currency can establish a qualified digital financial system.
In addition, the “White Paper” also proposes to establish an international NFR infrastructure. The digital world of artworks should not only have NFT agreements, NFR agreements can also become international standards. Let Metaverse or other virtual or digital finances have a healthy, fair and just environment for trading. For example, for a digital artwork, NFR can verify that the digital artwork is genuine or fake. Foreign NFTs run on the Ethereum network, and the payment function of Ethereum cannot yet reach the international payment function, and it needs to rely on exchanges to maintain the current transaction volume. If a large number of NFT artworks are added, Ethereum will not be able to support it, and Ethereum is public information and does not protect privacy. NFR is a multi-chain, chain-network system that can be expanded.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/the-official-release-of-the-non-homogeneous-rights-white-paper-nfr-is-expected-to-become-a-compliance-method-for-exploring-digital-rights/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.