In the world of digital art, a new phenomenon has emerged - NFT or Non-Fungible Token, which is essentially a set of digital data on the blockchain to secure the owner's right to own a certain unit of digital art.



Unlike physical works of art, where owning the original is considered important, in the world of digital art, the same image can be easily downloaded by anyone and shared. The NFT token tied to the digital artwork gives the owner the same ownership as owning a painting by a famous artist. It allows for potential liquidity and counterfeits to be solved through the blockchain and token system.

The idea is still in its infancy, but if realized, it could have far-reaching implications for the world of art and ownership. The NFT technology began with attempts to represent real assets using the Bitcoin blockchain, such as the colored coins and the crookedly drawn Pepe frog.

With the advent of CryptoPunks, a collection of 10,000 unique and collectible pixelated heads, NFT tokens have taken off on the Ethereum platform. This was followed by the launch of CryptoKitties in 2017, which marked the beginning of the mainstream adoption of NFTs. These digital seals had hidden mechanics built into them, allowing breeders to buy, breed, and sell the offspring for profit via smart contracts and genetic coding. This led to a mania that generated solid incomes for breeders.

Technically, ERC721 and ERC1155 are the most popular smart contract standards that allow the creation and transfer of unique digital assets on the blockchain. These standards enable the matching of unique identifiers with the address of the owner, as well as the transfer of assets between accounts. Metadata is an important part of NFTs, providing additional attributes like the name, image, and other details related to the digital asset, and it can be directly contained within the smart contract itself or separately in a third-party storage facility. The durability of NFTs depends on the blockchain itself, rather than their metadata storage.

The article focuses on ownership of NFTs, but fails to address the issue of recognition. Who exactly recognizes these tokens? Can they be taken to court and used to demand something? Without this, it's akin to selling lunar patches or naming a star in a private catalog that only the owner acknowledges.

In essence, aside from the blockchain technology, the idea behind NFTs is not entirely novel, nor is the ability to profit from them. However, the potential legal implications and recognition of NFTs remain a topic of debate. It remains to be seen how these digital assets will be treated in the eyes of the law and society as a whole.

To be frank, there are articles online that give a misleading impression regarding the partnership between IBM and IPwe. It seems that IPwe is the driving force behind this initiative, with IBM serving as a contractor to build the platform on the IBM Blockchain and IBM Cloud. There is no indication that IBM will translate their patents into NFTs.

Furthermore, I was unable to find much information about IPwe. Although they claim to be a leading company, there is little mention of them outside of their website and social media accounts. Even their Wikipedia page is lacking. Upon further investigation, I discovered that IPwe is a small startup with only a few employees. This raises questions about their ability to gain legal recognition for their product in a market that is already uncertain.

It remains to be seen how IPwe will grow and succeed in a field that lacks legal recognition, but it will likely require more than just a few lamas and employees. It will be interesting to see how companies like IBM navigate this new and evolving industry, and what role startups like IPwe will play in shaping its future.

In my opinion, the future of NFTs lies in their ability to be used in physical contexts. For instance, NFTs can be utilized for selling concert tickets that can be burned by the blockchain once they have been used. Similarly, a certificate of membership can also be issued as an NFT, enhancing its value and authenticity. It is this potential use case that has led to the success of digital assets like CryptoPunks.

As NFTs continue to gain popularity, their application in various industries is being explored. The potential of NFTs to provide tangible value and ownership to both digital and physical assets is driving their demand. From art to sports memorabilia and even real estate, NFTs are making their mark in diverse sectors of the economy. It will be interesting to see how this technology evolves and where it will take us in the future.

I am attempting to understand exactly what is being offered for sale. While blockchain technology has been implemented, its popular applications remain limited. A patent provides legal protection for an invention, including registration, expiration, and cancellation mechanisms. However, this process cannot be fully automated, and it is challenging to detect two similar patents accurately. Moreover, the patent system varies globally, creating a problem for private blockchains.

Perhaps a different service is being offered, such as registering someone's right to use someone else's patent through an NFT. However, real-world limitations such as export restrictions on technology can hinder this process, requiring government permission to sell patents. This negates the main advantage of using blockchain - the ability to operate outside of control by any particular individual or organization.

Thus far, I have yet to see a blockchain solution, besides cryptocurrencies, that possesses functional qualities that cannot be achieved by non-blockchain solutions. As blockchain technology continues to evolve, it remains to be seen how innovative solutions can be leveraged to solve real-world problems without being restricted by legal and regulatory issues.

The popularity of NFTs has led to what some describe as a "NFT mania" in recent years. This mania is characterized by a surge in interest and activity surrounding the buying, selling, and trading of NFTs. It has been fueled by high-profile sales and endorsements from celebrities, artists, and influencers, which have attracted mainstream attention to the NFT market.

One notable example of NFT mania is the success of projects like CryptoPunks and CryptoKitties. CryptoPunks, a collection of 10,000 unique pixelated characters, became a sensation when it launched on the Ethereum blockchain. Each CryptoPunk is a distinct digital asset, and enthusiasts began trading and collecting them. The scarcity and uniqueness of these digital characters contributed to their popularity and high prices in the secondary market.

Similarly, CryptoKitties allowed users to buy, breed, and sell virtual cats using NFTs. The breeding mechanics and rarity of certain traits made some CryptoKitties more desirable than others, leading to a fervor among collectors and breeders. In fact, during the height of its popularity, CryptoKitties transactions congested the Ethereum network, highlighting both the excitement and potential scalability issues of NFTs.

These projects and others like them have generated significant income for breeders or early adopters who were able to acquire popular NFTs and sell them at higher prices. The allure of making a profit through buying, breeding, and selling digital assets has attracted a community of "digital breeders" who engage in this speculative activity within the NFT ecosystem.

While the NFT mania and digital breeding have garnered attention and financial success for some individuals, it has also raised questions and concerns. Critics argue that the hype around NFTs may be unsustainable and liken it to a speculative bubble. Additionally, there are debates about the value and artistic merit of certain NFTs, as well as the environmental impact of blockchain technology.

In the music industry, artists have started releasing NFTs as a way to sell digital albums, exclusive tracks, or unique experiences directly to their fans. This allows musicians to engage with their audience in new and innovative ways while providing a new revenue stream outside of traditional music sales or streaming platforms.

Sports leagues and athletes have also embraced NFTs as a means to offer unique digital collectibles and experiences to their fans. For example, NBA Top Shot, a digital trading card platform built on blockchain technology, has gained immense popularity. It offers fans the opportunity to collect and trade limited edition video highlights of their favorite players.

Virtual real estate is another area where NFTs have gained traction. Virtual worlds like Decentraland and The Sandbox allow users to buy, sell, and trade virtual land using NFTs. These platforms provide a space for users to create and monetize their digital experiences, such as virtual events, art galleries, or virtual businesses.

Video games have also embraced NFTs by allowing players to acquire and trade in-game items or characters as unique digital assets. This provides gamers with a sense of ownership and the ability to monetize their in-game achievements.

points about the continued popularity and impact of NFTs:

1. Celebrity Involvement: The involvement of celebrities and influencers has played a significant role in driving the popularity of NFTs. High-profile figures from various fields, including music, art, sports, and entertainment, have embraced NFTs by releasing their own digital artworks or entering partnerships with NFT platforms. This exposure has helped bring NFTs into the mainstream consciousness and attract new audiences.

2. Cultural and Social Impact: NFTs have sparked conversations and debates around issues such as digital ownership, provenance, and the value of art. They have challenged traditional notions of art, allowing for new forms of creativity and expression. NFTs have also provided opportunities for underrepresented artists to showcase and monetize their work directly, bypassing traditional gatekeepers.

3. Intellectual Property and Copyright Concerns: The rise of NFTs has raised questions about intellectual property rights and copyright infringement. Some argue that NFTs can be used to prove ownership of digital assets and provide royalties to creators, while others worry about the potential for unauthorized use of copyrighted material.

4. Environmental Impact: The environmental impact of NFTs has become a topic of concern. The process of minting NFTs and conducting transactions on blockchain networks consumes significant amounts of energy and contributes to carbon emissions. There is ongoing discussion and exploration of more sustainable alternatives, such as utilizing different blockchain technologies or implementing environmental initiatives.

5. Market and Price Volatility: Like any emerging market, the NFT space has experienced fluctuations in prices and overall volatility. Some NFT sales have reached astronomical sums, while others have faced drops in value. The market's rapid growth and speculative nature have led to questions about sustainability and the presence of potential market bubbles.

6. Evolving Technology and Standards: The technology underlying NFTs and the standards governing their creation and transfer continue to evolve. Developers are constantly exploring ways to improve scalability, reduce transaction costs, and enhance interoperability across different blockchain networks. This ongoing development is crucial for the long-term viability and adoption of NFTs.