Blockchain Papers

Pablo Rafael Banchio

No abstract is available for this record.

Anela Ilijaš

The emergence of Non-Fungible Tokens (NFTs) has revolutionized the landscape of digital art, providing artists with new avenues for creation, distribution, and monetization. This research investigates the landscape of NFT art collections featuring Asian characters, specifically Japanese kanji and Korean hangeul, on the OpenSea platform. Theoretical frameworks drawn from digital art valuation, cultural representation in art, and blockchain technology guide the analysis. Findings reveal diverse manifestations of cultural identity and artistic innovation within the analyzed collections, reflecting the intersection of tradition and modernity in Asian art. Economically, prominent artists command substantial sales volumes, while others experience more modest transactions, underscoring the growing interest in NFT art within the global market. Culturally, NFT art collections serve as platforms for preserving and promoting traditional scripts and symbols, contributing to the global dissemination of Asian cultural heritage. Technologically, the adoption of blockchain technology empowers artists to assert ownership over their creations and establish new paradigms of value and authenticity. In conclusion, this research highlights the transformative potential of NFTs in reshaping the landscape of art and culture, emphasizing the need for continued exploration and collaboration to amplify cultural voices and expand artistic horizons in the digital age.

Mohammadhossein Lashkaripour

No abstract is available for this record.

Suliman Alshahmy, Arnaz Binsardi, Padmi Nagirikandalage

This paper aims to apply Vector Error Correction Model (VECM) to the prices and trading volume of Bitcoin and Ethereum, as they affect the non-fungible token subcategories of Collectibles, Metaverse and Art.The findings reveal that an accurate lag structure helps in capturing the lagged effects of shocks allowing the model to represent the intricate interdependencies among Bitcoin, Ethereum and the non-fungible token subcategories as indicated in the Impulse Response Function and Volatility Graph.This assists traders and investors visualize how these events and sudden increases in volatility impact the stability of cryptocurrency prices over time.

Yanto Chandra, Russell W. Belk

Non-fungible tokens (NFTs) have sparked questions about value. The mystery created by the millions of dollars paid for some NFTs while others are virtually worthless challenges our understanding of what constitutes value. In our attempt to shed light on the value of NFTs, especially during their dramatic rise in the early 2020s, we develop a theoretical analysis of the extrinsic factors shaping NFT value based on a perfect storm of individual, social, marketing, and environmental factors. After detailing the effects of each of these factors in shaping NFT valuation, we develop a new understanding of value in a frenzy of celebrity influence, social media, decentralized authority, unregulated markets, marketing hype, and media magnification. We also articulate the intrinsic factors that still affect value as well. Finally, we offer advice on how to make sense of value creation and perceptions of the NFT bubble. While our paper started as an attempt to discuss intrinsic object-based valuation, we found that in the NFT bubble economy and its aftermath, extrinsic, social, and situational factors came to dominate valuation. We end the paper by outlining a research agenda that can push our understanding of the impact of such factors as cryptocurrency and metaverse markets develop.

Momčilo Bajac, Ana I. Lakatoš

In this paper, we follow the position of art, artists and works of art with regard to the conditions in which the work of art is created, in an environment ruled by capitalist relations and the high-tech environment that accompanies them. The transition from analog to digital formats has opened new perspectives for artistic creation and distribution of works of art, but also problems related to copyright protection and fair monetization of works of art. The advent of blockchain technology, especially the Ethereum blockchain platform with open source technology and smart contracts, has enabled more efficient communication, distribution and monetization of artwork. The focus of this paper is especially narrowed on the emergence of NFT (Non Fungible Tokens) that can be carriers of the value of a work of art. They enable the uniqueness of the work to be maintained through controlled scarcity. We will present the ERC-721 standard, which enables the creation of NFT, as well as the first five leading platforms for placing NFT tokens on the blockchain through selected examples.

Aleksandar Tošić, Jernej Vičič, Niki Hrovatin

Wash trading in decentralized markets remains a significant concern magnified by the pseudonymous and public nature of blockchains. In this paper we introduce an innovative methodology designed to detect wash trading activities beyond surface-level transactions. Our approach integrates NFT ownership traces with the Ethereum Transaction Network, encompassing the complete historical record of all Ethereum account normal transactions. By analyzing both networks, our method offers a notable advancement over techniques proposed by existing research. We analyzed the wash trading activity of 7 notable NFT collections. Our results show that wash trading in unregulated NFT markets is an underestimated concern and is much more widespread both in terms of frequency as well as volume. Excluding the Meebits collection, which emerged as an outlier, we found that wash trading constituted up to 25% of the total trading volume. Specifically, for the Meebits collection, a staggering 93% of its total trade volume was attributed to wash trading.

Chen Shi-jian, Jiachi Chen, Jiangshan Yu, Xiapu Luo · 5 authors

NFTs (Non-Fungible Tokens) have seen significant growth since they first captured public attention in 2021. However, the NFT market is plagued by fake transactions and economic bubbles, e.g., NFT wash trading. Wash trading typically refers to a transaction involving the same person or two colluding individuals, and has become a major threat to the NFT ecosystem. Previous studies only detect NFT wash trading from the financial aspect, while the real-world wash trading cases are much more complicated (e.g., not aiming at inflating the market value). There is still a lack of multi-dimension analysis to better understand NFT wash trading. Therefore, we present the most comprehensive study of NFT wash trading, analyzing 8,717,031 transfer events and 3,830,141 sale events from 2,701,883 NFTs. We first optimize the dataset collected via the OpenSea API. Next, we identify three types of NFT wash trading and propose identification algorithms. Our experimental results reveal 824 transfer events and 5,330 sale events (accounting for a total of \$8,857,070.41) and 370 address pairs related to NFT wash trading behaviors, causing a minimum loss of \$3,965,247.13. Furthermore, we provide insights from six aspects, i.e., marketplace design, profitability, NFT project design, payment token, user behavior, and NFT ecosystem.

Wei Jia, Bin Yao

Responding to the necessity of scarcity and uniqueness in the digital format, NFTs (Non-Fungible Tokens) have recently gained much attention in cultural industries, especially video games and the art market. Faced with the digital paradigm shift and the challenge of dematerialization, creators started to use NTFs in order to emulate the concept of rarity for displaying, promoting, and monetizing their works in digital environments. An NFT is a certificate of ownership implemented through encrypted metadata pointing to a unique copy of a digital file. Likewise, NFTs enable the tokenization of a large array of digital, or even physical, assets. For this reason, they are used to facilitate the digitalization of contents heavily dependent on copyright and scarcity. Non-Fungible Tokens represent an emerging reality of significant economic, social, and cultural importance, which also raises important legal issues especially concerning the very nature of the NFT, as property or license, and the usage of copyrighted contents or trademarks. Indeed, the most frequent legal issues with NFTs are related to the attribution and exploitation of the Intellectual Property (IP) rights of the underlying content or litigations about non-contractual matters (i.e., theft). Litigious cases affecting NFTs most often take on an international dimension due to the decentralized nature of the technology on which they are developed, distributed on servers hosted in a multitude of countries, as well as the business practices of trading platforms that connect users from all over the world. Consequently, the principles of Private International Law (PIL) are applied to solve legal conflicts. This study focuses on the resolution of litigations related to NFTs in the three countries leading the global art markets: the US, the UK, and China. The analysis focuses on the application of international private law in relation to recent jurisprudence concerning conflicts involving NFTs and artworks.

Mingdong Tang, Xingyu Feng, Weili Chen

With the popularity of Non-Fungible Tokens (NFTs), which has now become a financial market that has attracted extensive attention worldwide. A large number of investors and creators are flocking to this emerging market in search of investment opportunities. Nowadays, many studies have analysed this phenomenon from an economic perspective. However, we know little about the players and ecosystem characteristics of this market. To fill this knowledge gap, we first provide a processed large-scale dataset of the Ethereum blockchain-based NFT market, containing more than 80 million NFT transaction records from January 2018 to April 2022. Second, we constructed the NFT creator graph (NCG) and NFT holder graph (THG) to delve into the characteristics of the NFT market. Further, we analyse the market preferences and trends using statistical methods to reveal the development trends of the NFT market. Finally, we focus on predicting the transaction volume of the NFT market and analyse the influence factors. This study provides data support for participants and researchers to explore the NFT market, while our analysis promotes a deeper understanding of the NFT market among the public.

Camilla Scarpellino

The art market seems exclusive to a limited circle of collectors due to information imbalances regarding artworks and their value. Often, one must turn to experts and auction houses to finalize a deal. In addition to artistic advice, legal consultations are also necessary, often due to third-party claims on the ownership of the artwork or cases of fraud. This article aims to explore the potential advantages of utilizing distributed ledger technology in the art market to verify and record transactions involving whole or parts of artworks, making them traceable and perhaps more easily purchasable.

Authors unavailable

This article delves into the intersection of Non-Fungible Tokens (NFTs), the art world, and the instrumental role of social media in advancing the proliferation of digital collections. NFTs, unique digital assets built on blockchain technology, have sparked a revolution in art ownership, identity verification, and creative expression. Through comprehensive exploration of its significance, challenges, and opportunities, this study demonstrates how NFTs have democratized art ownership, provided global recognition to artists of diverse backgrounds, and simultaneously granted direct access to collectors. A significant driving force behind the success of this blockchain technology lies in its investment potential. Social media platforms have transformed into virtual galleries, effectively amplifying artists' voices, enhancing societal insights and cultural levels, and shedding light on the global visibility of NFT projects. Case studies of successful NFT collaborations underscore the coexistence between NFTs and social media, highlighting the potential of both mediums in shaping the future of art and creativity. While acknowledging concerns such as copyright issues and environmental impacts, this article underscores the need for responsible actions and ongoing research to ensure a sustainable and pervasive future for NFTs in the art world.

Thanh-Truong Pham, Tuan-Dat Trinh

The non-fungible token (NFT) market has experienced significant growth in recent years. Similar to real estate and artwork, NFT is illiquid and it does not have a market price. Thus, there arises a need for a comprehensive scoring system to analyze the value of NFTs. Using a single score is often inadequate, as NFT value is influenced by numerous factors and is assessed based on personal objectives. Addressing the issue, this study explores critical factors influencing NFT value and develops three scores to rank NFTs including rarity, return on investment (ROI), and reputation score. The scores serve to evaluate both NFTs and NFT collections. (i) The rarity score evaluates the level of scarcity, and it applies to NFTs within a collection. (ii) The reputation score evaluates the interest of communities in NFT projects, considering the number of followers and the interaction rate; the score is for NFT collections. (iii) The ROI score assesses the profit generated by NFTs; it applies to both NFTs and NFT collections. Our empirical results show that a well-distributed rarity score of NFTs enhances their demand and profit; high-rarity NFTs are typically associated with a low number of sale transactions. NFT collections with high ROI and high reputation generally draw more attention and yield a positive return. In addition to the three scores, this paper presents a system to collect and process a huge amount of blockchain and social network data for NFT evaluation.

Viktor Manahov, Mingnan Li

We obtain daily data of Bitcoin, Ethereum, Travala token, Kemacoin and Guider to investigate the implications of history's most famous five heists on travel and tourism. We find a statistically significant spillover effect in the cryptocurrency and tourism token markets with a limited impact on travel and tourism companies' stock prices. We also find evidence of herding behaviour and observe that overall market quality deteriorated because of the heists. To deal with these negative implications, we propose implementing tools based on artificial intelligence algorithms, emphasising the two leading cryptocurrencies – Bitcoin and Ethereum. Tracking major crypto wallets and ‘whales’ can help regulators identify potential hacks and mitigate systemic risk caused by spillovers in cryptocurrency markets.

Mandeep Gupta

Saying no to speculation in the crypto market during NFT trades is a call for prudence, diligence, and a commitment to responsible investing. Embracing these principles will contribute to a more sustainable and credible ecosystem, allowing the underlying blockchain technology to fulfill its potential beyond short-term market fluctuations. Speculation in the cryptocurrency market, particularly during NFT (Non-Fungible Token) trades, demands a cautious and informed approach. The crypto market is renowned for its inherent volatility, a characteristic accentuated by the NFT space. Prices can experience sudden and unpredictable fluctuations, making it imperative for investors to exercise prudence and avoid succumbing to the lure of speculation. NFTs derive their value from factors such as perceived scarcity, demand, and cultural significance rather than traditional fundamentals. This lack of intrinsic value makes it challenging for investors to make well-informed decisions based on solid analysis. Furthermore, the rapid evolution of the crypto space means that NFTs may lack a substantial history of price data, adding an additional layer of complexity to the assessment of their value.

Mandeep Gupta

Blockchain and NFTs (Non-Fungible Tokens) are two closely related concepts that have gained significant attention in recent years, particularly in the realm of digital assets and decentralized technologies. Blockchain and NFTs (Non-Fungible Tokens) share a symbiotic relationship, with blockchain serving as the underlying technology that empowers NFTs to function as unique digital assets. NFTs, on the other hand, leverage blockchain technology to address the longstanding challenge of proving ownership and authenticity in the digital realm. By representing unique assets on the blockchain, NFTs solve the problem of digital scarcity, enabling artists, musicians, game developers, and creators to tokenize and sell their digital creations as limited-edition, one-of-a-kind items. The indivisibility of NFTs ensures that each token represents a whole and unique piece of content, be it digital art, music, videos, or virtual real estate. This paper is reviewing the world famous NFT that are traded on popular Blockchain on world famous NFT market place such as Opensea and YoungParrot. Several international brands have their NFT listed on such NFT market places.

Jose Luis Guijarro Alonso

Desde su espectacular aparición en el sistema del arte en 2021, los non-fungible tokens o NFT han acaparado la atención de investigadores del campo de la historia y el mercado del arte, de las ciencias sociales, así como de todos los agentes del sistema del arte. Este artículo estudia las relaciones con los NFT de un conjunto de artistas visuales españoles participantes en la feria ARCO Madrid en 2020, es decir, la última edición antes de su irrupción en 2021 en el mercado del arte. Así, mediante la elaboración de una encuesta online realizada en 2023, se analiza el impacto de la llegada de esta tecnología en su práctica artística. Los resultados aportan información tanto cualitativa como cuantitativa que demuestra la aún escasa penetración de los NFT en 2023 entre el conjunto de artistas seleccionado, al tiempo que explora las principales barreras que dificultan la incorporación a su trabajo.

Betül Seyhan, Emre Sefer

Non Fungible Tokens (NFTs) are blockchain-based unique digital assets defining ownership deeds. They can characterize various different objects such as collectible, art, and in-game items. In general, NFTs are encoded by blockchains smart contracts, and they are traded via cryptocurrencies. Their price and investors attention on them has remarkably increased especially in 2021, making them promising alternative class of investment. Surprisingly, predicting their prices has only recently started to be analyzed systematically.

Derya Şahin, Nazlıcan Gündeş

Teknolojinin gelişmesiyle birlikte pek çok alanda yenilikler yapılmıştır. Bu alanlardan biri de sanattır. Genel anlayışla sanat, galeri gibi kapalı mekanlarda, sınırlı kişilere yakından bakma imkanı sunarken, teknolojinin sağladığı imkanlar dahilinde sanatın oluşum ve dolaşım alanı genişlemiş, dünyanın bir ucundan diğer ucuna sanat eserine erişim sağlamak mümkün hale gelmiştir. Günümüzde popüler bir konu haline gelen, hızla yükselen, sanatı tuvalden sanal ortama taşıyan sanat alanlarından biri de NFT (Non-Fungible Token)’dir. NFT'ler, benzersiz ve değişmez dijital varlıklardır. Bilgisayar destekli teknolojinin kullanılması yeni bir olgu olmamakla beraber, sanat piyasasındaki geleneksel dinamikleri yıkan bir yapıya sahip olan NFT, dijital sanatın önemli ortamlarından biri haline gelmiştir. Özellikle sanat, oyun ve diğer sektörlerde sıkça kullanılmakta olan NFT’ler, sanatçılara birçok avantaj sunmaktadır. Araştırmada, NFT ve içeriğindeki; blokzincir teknolojisi, ethereum, metaverse (sanal evren) gibi kavramlar tanıtılmaya çalışılmıştır. Blokzincir teknolojisiyle birbirine bağlanan zincirlerin, bilgileri nasıl koruduğu, aynı zamanda metaverse ile birlikte gelecekteki sanatçılar ve izleyiciler arasındaki etkileşimi geliştirebilecek sanal dünyaları keşfetmeyi nasıl başarabileceklerinden bahsedilmiştir. Bu bağlamda NFT’nin önemli sanatçılarından olan, eserlerinde yapay zeka ve dijital manipülasyon tekniklerini kullanan Ender Diril’in, dijital sanat ve NFT’ye yaklaşımı, eserleri üzerinden NFT dünyası ortaya koyulmaya çalışılmıştır.

Claudia S. Quiñones Vilá

The digital revolution has launched myriad new technologies in the field of art and cultural heritage law, including digital art, NFTs (non-fungible tokens), artificial intelligence (AI)-generated art, virtual reality and reality augmentation, online viewing rooms and auctions, holograms, immersive experiences, and more. As a $67.8 billion industry, the art market is a global driver of innovation, international collaboration, and national economies, given its cross-border transactions. However, given the extremely rapid development of these new technologies, regulators have struggled to keep pace and implement legal measures that are fit for purpose in this field. Limited oversight has resulted in several claims that have the potential to change the legal landscape. For instance, claims over the theft/misappropriation of NFTs and the related fraud and money laundering that may ensue, as well as a recent class action copyright infringement suit against the creators of a popular AI algorithm and infringement claims over immersive installation and light technologies, demonstrate how new ways of thinking are required to assess cases involving digital property (distinguished from other types of non-tangible property). Moreover, the US Supreme Court has issued a landmark ruling on fair use within the copyright context, which will be relied upon in the future to determine whether (and to what extent) the appropriation of existing copyrighted material is permitted. This includes both the digital use of physical artworks and the use of born-digital works. Although jurisprudential decisions are made on a case-by-case basis, factual patterns involving online media, digital art, and related technologies could serve as guidance for legislators and other decision-makers when considering what limits should be imposed on Web 3.0. This article will focus on recent US-based claims and regulations and dovetail with existing art market regulations in this jurisdiction (e.g., anti-money-laundering statutes) to determine their impact on new technologies, whether directly or indirectly. Finally, the article highlights ongoing trends and preoccupations to provide an overview of the shifting legal landscape.

Roberto Cellini, Tiziana Cuccia, Johan Lyrvall

We analyse the pattern of daily price of a collection of artistic non-fungible tokens, namely, the "Bored Ape Yacht Club" (BAYC) collectibles, over the first year of their life, from May 2021 to May 2022. Taking a time-series analysis approach, we consider the daily average price, and other variants of daily price index, derived from hedonic regression model. Aesthetic features of the collectibles do matter. At the same time, the price series emerge to be non-stationary, integrated of order 1, with their first difference exhibiting heteroscedasticity and autoregressive variance. Models of ARCH/GARCH class are appropriate to describe the dynamics. Though the price series of BAYC collectibles and their daily movements share many characteristics with the series of financial assets, they do not appear to be related to financial variables from both the crypto- and the real (i.e., not crypto) world.

Luoli Zhao

This study delves into the burgeoning intersection of NFTs and the museum sector. It examines the transformative potential of NFTs in redefining art curation, ownership, and accessibility. The paper presents a comprehensive background on the rise of NFTs, their technological underpinnings, and their cultural and economic impact on museums. A Decision Matrix Mechanism is proposed to assist museums in evaluating the strategic fit of NFT initiatives. The paper discusses the multifaceted factors influencing NFT adoption, including technological readiness, legal frameworks, ethical considerations, and market dynamics. It underscores the importance of a nuanced approach that aligns with each museum's mission and the evolving digital landscape.

Yunpeng Xiao, B. Deng, Siqi Chen, Zhixuan Zhou · 7 authors

Non-fungible tokens (NFTs) are decentralized digital tokens to represent the unique ownership of items. Recently, NFTs have been gaining popularity and at the same time bringing up issues, such as scams, racism, and sexism. Decentralization, a key attribute of NFT, contributes to some of the issues that are easier to regulate under centralized schemes, which are intentionally left out of the NFT marketplace. In this work, we delved into this centralization-decentralization dilemma in the NFT space through mixed quantitative and qualitative methods. Centralization-decentralization dilemma is the dilemma caused by the conflict between the slogan of decentralization and the interests of stakeholders. We first analyzed over 30,000 NFT-related tweets to obtain a high-level understanding of stakeholders' concerns in the NFT space. We then interviewed 15 NFT stakeholders (both creators and collectors) to obtain their in-depth insights into these concerns and potential solutions. Our findings identify concerning issues among users: financial scams, counterfeit NFTs, hacking, and unethical NFTs. We further reflected on the centralization-decentralization dilemma drawing upon the perspectives of the stakeholders in the interviews. Finally, we gave some inferences to solve the centralization-decentralization dilemma in the NFT market and thought about the future of NFT and decentralization.

Roman Kräussl, Alessandro Tugnetti

Abstract This paper provides a review of the development of the non‐fungible tokens (NFTs) market, with a particular focus on its pricing determinants, its current applications, and its future opportunities. We investigate the current state of the NFT markets and highlight the perception and expectations of investors toward these products. We summarize and compare the financial and econometric models that have been used in the literature for the pricing of non‐fungible tokens with a special focus on their predictive performance. We design a framework that can help to understand the price formation of NFTs. We further aim to shed light on the value‐creating determinants of NFTs in order to better understand investors’ behavior on the blockchain.