Business models with NFTs are legally challenging. This gives rise to a number of new legal questions, even beyond copyright or tax law.
Table of Contents
More about blockchain
Digital law for companies: trade NFTs with legal certainty
Advantages and disadvantages of blockchain in logistics and trade
Law: Electronic Securities Act in force
IoT Security: Blockchain on the SIM card
Cryptocurrencies: An Introduction to the Ethereum Blockchain
With NFTs, Mercedes-Benz wants to merge physical and digital products. In the first quarter of 2021, ten percent of global sales on the art market were generated with NFTs. There are also commercially successful projects such as the Bored Ape Yacht Club, the CryptoPunks or the CryptoKitties. Crypto and NFT games, NFT auction houses and NFT platforms are also booming.
These examples are the application areas for NFTs that are currently on everyone’s lips and made headlines, especially in 2021. However, other business models can also be implemented or supplemented with NFTs: proofs of origin for products including supply chains, digital identities, electronic health records, land register functions, storage of training and employment certificates, management of entrance tickets or emission certificate trading.
Put simply, NFTs are a database entry on a blockchain. The tokens are created by the first publication of the link between the NFT data set and an existing blockchain, the minting. The creator of an NFT freely defines the content of the database entry. However, the entry in a blockchain with the information stored in the NFT is unique and cannot be exchanged with other NFTs – in contrast to cryptocurrencies, for example, it is non-fungible.
