Cryptocat author for social media insanely

Kelsey: I imagine storing an original masterpiece by Rothko at home would pose some serious security challenges.

Remember that, in the physical domain, RothkoвЂ™s paintings of abstract art have sold for hundreds of millions of dollars.

You could say that the value is similar to owning an original artwork by Mark Rothko, rather than just a mere print that you buy for ВЈ10 from a poster shop. Presently, people are describing NFTs as more of a вЂњbragging rightвЂќ to prove you own digital art or collectibles. Things like royalties, monetisation, licencing and possible tax implications will require some maturation, and are still being fleshed out by stakeholders. Tim: Yes, unless the NFT provides the purchaser with some permission to commercialise its use вЂ“ which is a potentially very big opportunity in future. Kelsey:В So, at this stage, in entertainment the value of an NFT is mostly personal? ThatвЂ™s the subject of a whole different discussion.

For example, Yearn Finance - a decentralised finance (DeFi) suite of products on the Ethereum blockchain вЂ“ is enabling вЂњtokenised insuranceвЂќ. However, at the other end of the scale, some are working on the use of NFTs in finance and the insurance industry. Tim: Well, we have touched on what some might consider to be a somewhat light-hearted and gamified use of the tech вЂ“ CryptoKitties. Kelsey: Picking up on that point about value, why are we seeing people get so excited about owning NFTs? Where does that value come from? In the digital media context, itвЂ™s important to remember that the look, shape, sound and provenance of the particular NFT can really drive value, like any piece of tangible art would. The value of the CryptoKitty in question can appreciate or depreciate based on demand in the market. Importantly, it is owned by a particular user at any given time, and that ownership is validated through the blockchain itself. Each virtual CryptoKitty is unique, and cannot be reproduced.

Kelsey: Right, I remember that one of the first popular NFTs was CryptoKitties, where you could вЂњbreedвЂќ and вЂњcollectвЂќ what were essentially unique cartoons of cats, and then trade or sell them as you like on the Ethereum blockchain. Because the NFT value is determined according to its unique personality or characteristics, the value is attributed to it by prospective buyers and sellers, creating a market opportunity. By contrast, non-fungible tokens are inherently unique and irreplaceable: thatвЂ™s what вЂњnon-fungibleвЂќ is getting at. Because it is вЂњfungibleвЂќ вЂ“ effectively meaning mutually interchangeable - it can be exchanged or traded in a way that works similarly to any traditional currency. Tim Ryan: In your average cryptocurrency system, a particular token will be indistinguishable from another token of the same value. Kelsey Farish: Tim, youвЂ™ve written about distributed ledger technology (DLT) in the past, and you understand what makes the blockchain ecosystem not only interesting from a technological perspective, but valuable from a commercial one. In this article, solicitor Kelsey Farish chats with our head of the Technology & Media team, partner Tim Ryan, about this exciting technology and its implications for the digital media and entertainment sectors and wider ramifications. Non-Fungible Tokens: From CryptoKitties to Smart ContractsДЄlthough much of the legal framework and intellectual property (IP) implications surrounding non-fungible tokens (NFTs)В are to be fully developed, analysis of key areas is possible by reference to existing law and there is optimism about how thisВ use of blockchain technology may be used practically in the future.

Cryptocat author for social media insanely