Non-Fungible Tokens (NFT’s): The Future of Digital Collectibles

Abstract

Non-Fungible Tokens (NFT’s) indicate the creation of a blockchain-based digital certificate of authenticity that is comparable to other virtual crypto assets and currencies. The use of blockchain technology and the exchange of digital currency have become increasingly widespread in recent years. Having said that, as has been shown in recent years, the NFT market is also booming. The very idea of NFT is derived from an Ethereum token standard that aims to separate and recognise each token with its distinct signature being tied with digital attributes. India has also seen increased interest in this digital sector, particularly from the future new-age investors and digital innovators, as a result of the spectacular return on its quickly expanding global market. However, due to the early stage of the NFT ecosystem's growth, India lacks a regulatory legislative framework to oversee such immature digital crypto assets. There are several legal complexities surrounding them, which has made it difficult to determine their legal legitimacy and sanctity. New artists could have a tendency to become lost in this chaotic growth in the absence of comprehensive descriptions. This paper aims to examine the idea of NFT in comparison to bitcoin and copyright, as well as its operational and technological elements. It attempts to examine the legal hazards that affect its operation as well as the potential and difficulties the Indian legal system has with regard to crypto-assets.