Blockchain Papers

Lital Helman, Ofer Tur‐Sinai

No abstract is available for this record.

Wenxiao Yang, Zijun Shi, Song Lin

No abstract is available for this record.

Dan Ankenman

Despite the immeasurable value music provides society, finding ways to monetize their music is often an elusive and challenging prospect for musicians. The music industry has evolved into a consolidated “hits market” in which profits are highly concentrated in a small set of intermediaries and relatively few superstars. This “hits market” not only makes it incredibly difficult for most musicians to make a living with their music, it also fails to capture and compensate musicians who aren’t extremely popular for the significant value they create. In the face of this deadweight loss, non-fungible tokens (NFTs) could be a means of disrupting the economic status quo and creating a superior set of economic incentives for musicians. This Article is the first in the legal literature dedicated to evaluating the viability of NFTs as an additional income stream for musicians. After detailing the economics of the traditional music industry and providing a framework for understanding NFTs’ asserted value, this Article considers constraints imposed by contractual obligations and copyright law to analyze NFTs’ potential to transform music monetization. Ultimately, this Article concludes that, notwithstanding their limitations, NFTs are likely to be an important new source of revenue for musicians who have been left behind by the popularity-driven economic incentives of the traditional music industry.

Bin Bai

With the development of blockchain technology and non-fungible token (NFT), digital collections have ushered in a golden age. In the field of cultural and museums, the digital collection has also been given a new mission, i.e., to migrate cultural relics from offline places to online digital platforms, thus broadening the application areas and ways of offline collection. However, in the actual implementation, it presents a multifaceted ecology of pros and cons. Beginning from the current situation of displaying and utilizing digital collections, this paper comprehensively discusses the opportunities and risks faced by digital collections in terms of venue breakout, market-based valuation, cultural and tourism integration, illegal finance, digital banditry, and property rights based on the application cases of digital collections in museums, and provides an outlook on the future model of museum digital collection ecology.

Giampaolo Frezza, Pietro Virgadamo

Lo scritto si propone di indagare il fenomeno dei non fungible token nel mercato dell’ar­te. Dopo una definizione dei termini tecnici rilevanti, gli Autori si soffermano sulle multiformi opinioni sorte in merito alla natura giuridica di tali strumenti di circolazione della ricchezza. La disamina consente di superare, in buona parte, lo stringente problema qualificatorio, concentrandosi sull’individuazione della disciplina di volta in volta più adeguata al caso concreto, nella consapevolezza della complessità e poliedricità degli strumenti medesimi.

M Vivaswanth Kashyap, Vaidya Saideepa, Kallem Shivadar Reddy, Mrs.T.Ratnamala

Blockchain is a ground-breaking technology that will soon have a significant positive impact on our commercial environment. Non-Fungible Token is referred to as NFT. A digital representation of a real-world item, such as music, art, in-game items, or films, can be referred to as an NFT. They are typically exchanged online using various cryptocurrencies. Different from fungible tokens that are bought or sold on numerous centralised or decentralised exchanges, non-fungible tokens transacted on an NFT marketplace. NFTs are unique. Every NFT has a digital signature that prevents them from being altered for another NFT. Each has a unique value based on a number of variables, including metadata, creator,features, etc. The NFT marketplace, which gives users a platform to create and exchange Non-Fungible Tokens, is meant to be at the centre of all the fantastic use cases for NFTs. The software will be compared to other well-known systems like Opensea, etc., whose major transaction volume is on the Ethereum blockchain network. In this endeavour, we will focus on establishing an NFT Marketplace using the Internet computer. We would interact with the internet computer using Motoko, and the front end of the application would be made with Reactjs.

Gilbert Fridgen, Roman Kraeussl, Orestis Papageorgiou, Alessandro Tugnetti

No abstract is available for this record.

Péter Mezei, Ioanna Lapatoura

Non-fungible token was a buzzword throughout 2021 and continues to thrive. NFTs are uniquely identifiable digital representations of structured metadata referring to physical or digital items. They are predominantly used to transfer certain interests and rights (including intellectual property) over the fandom, profile pictures or born-digital artworks. While NFTs might be primarily used in for-profit settings, with numerous artists and brands reaping the benefits of marketing their creations on NFT platforms, they have profound relevance for organisations active in the field of the digital preservation and dissemination of cultural heritage. This chapter discusses how NFTs might be approached by the GLAM sector. It especially focuses on the possible changes to the financing and the professional role of galleries and museums, the potential of NFTs to revolutionise access to digitised or born-digital artworks from a much wider audience, the fate of ownership of ‘real-world’ artworks, the possible collaborations of cultural organisations and NFT platforms, and whether NFTs can serve as an optimal solution for the preservation and dissemination of cultural heritage hosted by cultural organisations. It also presents the findings of a survey-based empirical analysis of the perceptions of people interested in NFTs related to the relevance of NFTs in the galleries and museums sector.

Katleen Vermeir, Ronny Heiremans

Abstract In our 2018 film, A Modest Proposal, we proposed to financialize the assets of public museums, their collections, and buildings, and distribute the generated values for the benefit of the producers of those values: the artist community. Reality seems to have caught up with our proposal. In the wake of the pandemic, public museums started to sell NFTs of their master pieces. But this did not inspire any new form of mutualization. In this text, we question whether blockchain infrastructures can be considered a public good. The individualistic logics that pervade the crypto sphere consider human relations in transactional terms and the enforcement of property rights as the only valuable governance principle, defining property as the basis for representation in many of the Decentralized Autonomous Organizations (DAOs). The trust placed in automated processes might lead to ‘governance by algorithms’, making the ‘Leviathan’, the sovereign machine, a frightening possibility. Other blockchain infrastructures may offer more inclusive alternatives. Distributed Cooperative Organizations (DisCOs) acknowledge the need for the individual to sustain her/himself and yet also create a solidarity economy by the mutual distribution of collectively generated values among all contributors. We focus on the above questions on property, public goods and governance using our home in Brussels, which we have defined as an artwork and framing device. It is the ‘house as artwork’ that helps us evaluate how these concepts play out in an accelerating world in which blockchain and other technologies might equally generate emancipation or new enclosures.

Rogério Tavares, João Paulo Sousa, Bruno Maganinho, João Pedro Gomes

The use of non-fungible tokens (NFTs) in AAA games is a very controversial topic, which leads to negative reactions from the gamer community. The objective of this article is to relate some of these cases that presented visibility in the press and to analyze the reactions this theme generates. To achieve this, we present some cases that had more relevance in the specialized press and, in the sequence, we present a discussion about the main problems pointed out, such as the state of the art of blockchains, energy efficiency, frauds, and currency evasions. Finally, we present some hypotheses to glimpse how NFTs, and their use in games, may happen in the near future.

Dong Huang, William N. Goetzmann

Using transaction data from a large non-fungible token (NFT) trading platform, this paper examines how the behavioral bias of selection-neglect interacts with extrapolative beliefs, accelerating the boom and delaying the crash in the recent NFT bubble.We show that the pricevolume relationship is consistent with extrapolative beliefs about increasing prices which were plausibly triggered by a macroeconomic shock.We test the hypothesis that agents prone to selection-neglect formed even more optimistic beliefs and traded more aggressively than their counterparts during the boom.When liquidity for NFTs declined, observed NFT prices were subject to severe selection bias due in part to seller loss aversion delaying the onset of the crash.Finally, we show that market participants with sophisticated bidding behavior were less subject to selection bias and performed better.

Pretty Mona Jessie Silalahi, Tiara Buhara, Setiani Putri Hendratno

This research focuses on how artists and the young generation perceive the use of NFT and their impact on the future value of currencies. It increases the author’s curiosity about the reactions of artists and the young generation to the use of NFT and its impact on future currencies. The authors also wanted to know why they are publishing digital works on NFT and whether they think NFT is the future of digital assets researchers or just a bubble. This study uses a qualitative method with semi-structured interviews with artists and the younger generation with the criteria of understanding and using NFT, understanding and not using NFT, and not understanding and not using NFT. The result that the authors get from this research is that the use of NFT has been widely used by artists and the younger generation. They say that the publication of digital works can be guaranteed. Another interesting thing is that they consider NFT to have a great opportunity as an asset in the future, where the use of cryptocurrency also affects the value of the currency in the future. However, the younger generation is not interested in NFT. They prefer NFT to be implemented as a payment system in the future.

Dirk G. Baur, Jonathan R. Karlsen, Lee A. Smales, Allan Trench

No abstract is available for this record.

<p>Shu Wu¹, Yuewen Guo¹, Chao Hu¹, Alia Erbolat², Beibei Tang³, Kangrui Sun⁴</p>

Since the emerge of NFT artworks in 2019, countless users have begun to flood the NFT trading market. As a non-fungible token, NFT not only provides a new art form, but also can provide a new way for the copyright protection of current artworks. This paper will choose literature analyzing method and comparative analysis method. A detailed analysis will be given to explain the operation and related copyright protection of mainstream NFT trading platforms at home and abroad. Combined with the analysis of actual domestic NFT transactions and the situation of copyright protection, from the three levels of law, technology and management, this paper proposes countermeasures and suggestions for digital art copyright management and protection which based on NFT, that is, non-fungible tokens. We expect to analyze the mainstream NFT trading platforms at home and abroad comprehensively and objectively, summarize their characteristics and commonalities, enrich the application of NFT in the field of copyright protection, provide reference opinions for the construction of the domestic NFT copyright protection environment, and promote the development and prosperity of the cultural industry.

Roberto Moro Visconti, Andrea Cesaretti

Digital art uses digital technology as part of the creative process or exhibition presentation. Crypto art is linked to blockchain technology and concerns certified digital artworks. Valuation profiles take their cues from the metrics traditionally used for copyright (royalty monetization or otherwise) and adapt to the peculiar case at hand. Compared to traditional art, the greater usability through web channels is typically counterbalanced by an absence of exclusivity.

Jeffrey Tzu Kwan Valino Koh

No abstract is available for this record.

Qun Cao, Yongqiang Ding, Yiran Ye, Riguang Wen

In recent years, with the rapid development of blockchain technology, the emergence of Non-Fungible Tokens (NFTs) has become a disruptive and innovative application that has attracted widespread attention and triggered frenzy. This study examines the momentous but may be easily neglected price factor in the NFT market. Using hand-collected daily data on the number of followers of 150 NFTs on Discord from April 18 to 15 October 2022, empirical results find that the fan economy on social media platforms has a positive impact on NFT pricing. Furthermore, this impact has a certain time-lagged effect. To ensure the robustness of the research, this paper also collects Twitter followers as an alternative indicator to measure the fan economy, and all the empirical results of the Twitter platform are significant. The findings of this paper are of great significance for studying the factors affecting the price of NFTs and provide certain assistance for the decision-making of NFT issuers and investors.

Guneet Kaur Nagpal, Luc Renneboog

Passion investment (e.g., paintings, sculptures, non-fungible tokens [NFTs]) are not based on straightforward valuations. To establish the valuation of collectible NFTs in the nascent market of digital art, this study uses approximately 14,000 transactions by 3 ,230 unique traders in a highly liquid digital collectibles market (CryptoPunks) to identify the price influences of affective factors at product–, market participant–, and market conditions–levels. In a robust, hedonic pricing model, the study offers multiple novel findings. First, there is evidence of subjective valuation of visual (aesthetic) elements of art among market participants, who are homogenous on the value of objectively measurable traits. Second, contrary to popular perception, NFT market participants’ who are naive (in terms of crypto currency experience) or experienced a windfall gain (due to favorable cryptocurrency exchange rates) trade at lower prices. Notably, the study finds that NFT collectibles market is a sellers’ market; likely due to its decentralized character, such that sellers have direct control and influence over transactions, unlike in traditional art markets mediated by agents. Third, prior trading activity and prices positively associate with future prices, implying price extrapolation and anchoring. The findings suggest that compared to the traditional art and investment domains, digital ownership might evoke similar, if not stronger, emotional responses among consumers than physical ownership.

Raphael Auer, Giulio Cornelli, Sebastian Doerr, Jon Frost · 7 authors

No abstract is available for this record.

Victoria Dobrynskaya, Daniele Bianchi

We investigate the correlation between rarity and returns on investments in digital art in the form of non-fungible tokens (NFT) across three major comparable collections. Methodologically, we first quantify the “shadow” price of both individual rarity scores and aggregate market activity through the lens of an hedonic regression analysis which corrects for time-varying dispersion in prices. In addition, we delve into the cross sectional distribution of the returns across NFTs clustered by rarity scores and number of sales. The results point towards a positive (negative) correlation between the average performance and rarity (number of sales). Yet, the average performance is primarily due to outlying returns and is substantially lower when focusing on transactions on the secondary market.

Vuttipat Duangsin, Tanpat Kraiwanit, Ruangchan Thetlek, Yarnaphat Shaengchart

Non-fungible tokens (NFTs) are a form of cryptocurrency that is commonly employed in sectors such as collectibles, art, and gaming (Pinto-Gutiérrez et al., 2022). The purpose of this study is to analyse the factors that affect NFT holdings in Thailand. The data was collected from 812 Thai residents who owned digital assets, and it was analysed using binary regression. The results indicated that NFT ownership could be predicted by NFT proficiency, marital status, age, and education, while occupation, monthly income, and savings were not significant. The paper proposes that the Thai government should collaborate with policymakers and regulators to create an extensive plan for the NFT industry, taking into account the significant factors (NFT competence, marital status, age, and education) in analysing investor behaviour, and blockchain companies may use the findings to increase NFT users through marketing.

Baptiste Perez Riaza, Jean‐Yves Gnabo

The objective of this study is to determine the factors that contribute to market efficiency in the crypto-asset market. Despite prior evidence from the literature demonstrating variations in efficiency across assets and time, few have investigated driving factors beyond liquidity. By using a dataset of 122 crypto-assets with imbalanced data, our analysis discovers that both market conditions and inherent characteristics of crypto-assets significantly impact the predictability of their returns. Specifically, market efficiency is positively associated with increased liquidity and age. Our findings highlight that DAO projects demonstrate greater efficiency compared to non-DAO projects. This result suggests that transparent decentralized decision-making model can help reduce information asymmetry leading to a more efficient market pricing.

Juan Camilo Ortiz-González

This paper looks forward in investigating NFT (Non-Fungible Tokens) Communities through the case study of the CryptoPunks collection as deterritorialized assemblages with a clear ethic posture towards market (financial and art) decentralization, taking into account the interpretations of the meaning(s) of the action, having a view on philosophical theory close to the Crypto community as well as the perception of users and experts on the matter. The investigations works on the direction of finding said meaning through an analysis on the semantic and pragmatic levels, distinguishing between discourses and the practices carried out within the Blockchain, with a particular focus on the Ethereum Network to make emphasis on the mechanisms which allow said assemblage.Additionally, I hope to draw the importance of the human-inhuman interaction in the sociological field, focusing on the possibilities of sociability which are established semantically as well as pragmatically in the technical and technological advancements, taking into account our current time of growing automation and algorithmization of interactions.As a conclusion, we find that ethicity is distributed differentially between the semantic and pragmatic moments, as foundational discourses and the uses taken by the collectionists are far off in their meaning. Such discourses usually go in favour of decentralization of the economy in the privilege of heteronomic and heterarchical forms of constructing value and subjectivities, meanwhile, the uses taken by the collectionists usually undergo in the meaning of maximizing investments which were pushed onto the digital assets tied to NFT contracts, and as such, the community is bonded as far as the speculation of a collection maintains its upward momentum. The community, gestated as an assemblage on its motivation for speed, deterritorialization and decoding is captured by users co-opted by the discourses of capital as an Entrepreneur of himself, seeing digital art assets as maximizers of capital, locking into a loop much like stock market practices.

Sevgi Ayşe Öztürk

Bu makalenin amacı; kapsamlı bir literatür taramasına dayalı olarak, NFT (non-fungible-token: misli olmayan kripto varlıklar) kavramını işletmeler ve tüketiciler perspektifinden değerlendirebilmektir. NFT; resim, oyun, ses gibi bir dijital varlığa sahip olmak için blok zincire kayıtlı bir haktır. Bir benzeri olmayan, şifrelenmiş dijital varlıklar olan NFT’ler temsil ettikleri dijital varlıkların menşeini/kaynağını koruyarak, önceki sistemlere göre daha kolay ticaretinin yapılmasına, değiş tokuş edilmesine, kimliğinin doğrulanmasına ve transfer edilmesine olanak sağlamaktadırlar. Sanat, koleksiyonerlik, oyun gibi alanlarda görülen NFT uygulamaları yaratıcı içerik üreticilerinin olduğu kadar şirketlerin ve markaların da ilgisini çekmektedir. 2021 yılında hızlı büyüme gösteren NFT pazarı lüks tüketim markalarının yeni tüketici kitlelerine ulaşmasını sağlamıştır. Günlük tüketim markaları da genç tüketiciler ile bağ kurmada ve sosyal sorumluluk kampanyalarına dikkat çekmede NFT uygulamalarını kullanmaktadırlar. Farklı tüketim deneyimleri yaratma, tüketicileri dijital topluluklarda buluşturma yoluyla da NFT’ler tüketiciler ve işletmeler için değer yaratabilme potansiyeline sahiptir.