Non-fungible tokens (NFTs) from fiqh and maqasid perspectives

Abstract

The world is currently experiencing the emergence and expansion of non-fungible tokens (NFTs). Typically, NFTs utilize the same blockchain technology as Ethereum, distinguishing each token by its uniqueness, rendering it non-interchangeable with other tokens. These tokens can represent various forms of digital assets, including photographs, videos, drawings, music, or even tweets. Experts anticipate that the total investment in the NFT market from 2022 to 2026 will reach an estimated 14 billion US dollars. The objective of this research is to elucidate the concept of NFTs and to determine the Shariah rulings pertinent to them, employing both descriptive and analytical methodologies. This study encompasses a legal examination of the subject matter, focusing on the financial characteristics of NFTs, their potential benefits, and their projected economic value. Furthermore, the study examines NFTs from a Maqasid perspective, considering their potential risks and advantages.