This document is an overview of the problems of determining the rights to non-fungible token (NFT) in The Open Network, for the seller, the artist, the buyer. The article describes the trend of crypto art, which is digital art, which is considered as physical art because of the possibility to confirm the ownership of the work. The authenticity of digital art can be confirmed by using NFT or a non-fungible token. The possibilities and limitations of the development of the NFT-market in The Open Network are presented.
NFT ownership licenses in The Open Network is not a legal instrument. This is a description of the license for NFT, written in an accessible language, a statement of some of its main provisions. Imagine it as an interface to the license text for NFT. By itself, this document has no legal force, its contents are not included in the license for NFT in The Open Network. LLC MIR is not a law firm and does not provide legal services. The distribution, display, or citation of this license does not create the subject of a lawyer-client relationship. MIR LLC does not certify the legal status of any work to which a proprietary license for NFT applies. MIR LLC makes no guarantees regarding any work, or its legal status under any jurisdiction, and denies any responsibility for any use of any work.
Keywords: NFT, The Open Network, blockchain, art, technology, ownership, copy, original
NFT - digital identifiers secure the confirmed ownership of virtual elements in the blockchain, protecting them from replication, making them identifiable and unique, increasing their value and opening up business opportunities. Non-fungible token can be used to sell digital collectibles. In addition, NFTs have the potential to transform the relationship between brands and customers, opening up exclusive opportunities. They can also be used as secure digital passports that guarantee the authenticity of goods, which makes them useful, in particular, for luxury goods retailers and consumers. For example, Swiss watchmaker Vacheron Constantin has launched Hour Club, an owner-only digital platform offering tracking and authentication of their watches with NFT support, customized content and event invitations. Despite the fact that the technology is mainly focused on consumer goods and mass media, its spread is accelerating.
Today, an NFT token is usually understood exclusively as digital art or crypt art, i.e. a certain object of copyright (music, text, picture). This is due to the fact that tokens allow you to create any media file. However, it is possible to tokenize not only copyright objects, but any other objects. So, in accordance with Liechtenstein legislation, an NFT token is a container program that is wrapped on the platform, transmitted using smart contracts, etc. Any object can be "sewn" into this "container" (an object of movable or immovable property, the same AI, or an object created by AI). The legal regime of what is "sewn" into the "container" is regulated by customary law.
Accordingly, the NFT token has two components: unique objects that are "sewn" in them, and the ability to use these objects. Thus, there is a bifurcation of the goals of the purchasers of this type of tokens. Some people collect them or buy them in order to sell them more expensive after some time. Others acquire them in order to use them. For example, on the exchanges of NFT tokens, tokens are used in which domain names or objects used in virtual worlds are "sewn". Accordingly, the acquirer of such tokens uses them to solve practical problems (marking certain objects, participating in a sports game or in the virtual world, hosting websites, etc.).
Thus, there is a convergence of technologies: first, a program is used to create an object of copyright, then a program for its tokenization, and then various options for using tokens are possible. In this regard, the legislation on digital financial assets cannot be extended to NFT tokens, since they do not perform the corresponding functions. Rather, such tokens can be used as a tool for the protection and commercial turnover of intellectual property objects. For example, a singer records a new song, "sews" it into a token and sells such a token through a special platform through the conclusion of a smart contract. In this regard, the main question today is whether it is possible to say that exclusive rights arise from NFT tokens, and whether the norms of current legislation apply to them, or whether new legal institutions need to be created to consolidate the legal status of rights that arise from the ownership of NFT tokens?
One of the types of non-fungible token are NFT [2]. The occurrence of this object and transactions with it causes a lot of legal and accounting problems. In particular, along with the presence of an active market for such tokens, its legal status is not clear, business practices have not been formed in international practice, the process of their accounting and taxation has not been standardized. Based on the essential characteristics of the NFT, there is also a difficulty in classifying it as an accounting object and related accounting methodology. In order to outline ways to solve the problems that have arisen, it is necessary to consider the essence of NFT, their regulatory regulation and belonging to the objects of accounting fixed in the current international accounting standards.
It is believed that the token is unique; it is almost impossible to fake, divide or replace it with another similar product. This approach involves securing certain rights to a digital object, although at the moment it is not entirely clear how these rights are regulated. This new and rather active trend in cyberspace is already changing the art and collectibles industry, and its application in the future may be the basis for the emergence of a new asset class. [3]
Studying the standards concerning the NFT market of these objects in general and their legal and accounting norms. Now there is an active introduction of digitalization in all spheres of the economy, and the accounting methodology should change. But there is a significant lag behind the current practice, the availability of a market for new digital products. The relationships on computers, the emergence of new tools and technologies raise many questions that are not reflected in the accounting regulations. The market for non-interchangeable NFT tokens in cyberspace is actively developing.When transactions exceed significant volumes, regulatory legal regulation does not regulate them in accordance with the current situation of the information society. According to the results of the identification of the NFT as an accounting object, it was partially or completely impossible to attribute it to a specific object of accounting policy. In order to ensure the accounting of such specific digital products as NFT and its regulation at the level of standards or in DAO smart contracts, it is necessary to develop a methodology for accounting for these information products.
Open the Github repository https://github.com/mir-one/ton-nft-license and follow the Article EN or Article RU
{
"name": "Fingerprint #1249",
"description": "This is a NFT collection of 10 000 unique digital fingerprints created based on the algorithm for generating basic rings using a noise texture. Like human fingerprints, you can now use them for the Web3 and Metaverse era as digital biometric information on The Open Network.",
"image": "ipfs://bafybeibwffjrngqzvmckaa36y5lc3aihzuepjkbsllktsedxc5wu3ctuvu/1249.svg",
"image_fingerprint": "ipfs://bafybeidsj7bewr366nlzpkjt2w4npawhwdfpqlzifjyy6d2cmx43jyi2h4/fingerprint_1249.svg",
"license": "ipfs://bafkreihj7iub3fhmhq6jn62noukt5wxn3gv6bvcg7wmt6ywvlurefezckq",
"theme": { "main": "#2188ff" },
"attributes":
[
{ "trait_type": "Count", "value": "13" },
{ "trait_type": "Area", "value": "9.50720" },
{ "trait_type": "Perimeter", "value": "1035.08995" },
{ "trait_type": "Major", "value": "108.18800" },
{ "trait_type": "Minor", "value": "44.19611" },
{ "trait_type": "Angle", "value": "88.65860" },
{ "trait_type": "Circularity", "value": "0.27828" },
{ "trait_type": "Integrated density", "value": "1864873.84615" },
{ "trait_type": "Skewness", "value": "-6.19330" },
{ "trait_type": "Kurtosis", "value": "61.38706" },
],
}Biometric data exchange format standards define biometric data exchange records for different biometric modalities. The parties that have agreed in advance to exchange biometric data exchange records, as defined in the ISO/IEC STK 1/PC 37 biometric data exchange format standards, should be able to perform biometric recognition when using each other's data. The Parties should be able to carry out biometric recognition even if the specific standards of the biometric data exchange formats to be applied have not been agreed in advance, but their systems are based on the ISO/IEC STK 1/PC 37 biometric standards.
Basic implementation of smart contracts for NFT tokens and NFT collections in accordance with the Standard.
nft-collection.fc - basic implementation of immutable NFT collection with royalty.
nft-collection-editable.fc - basic implementation of the NFT collection with royalty in which the author can change the content and royalty params.
It is preferable to use an editable collection in case if you decide to change content hosting in the future (for example, to TON Storage).
nft-item.fc - basic implementation of immutable NFT item.
TonWeb JavaScript SDK 0.0.38+ supports these contracts.
Also repo contains an example of a simple marketplace smart contract nft-marketplace and a smart contract for selling NFT for a fixed price for Toncoins nft-sale.
In a real product, marketplace and sale smart contracts are likely to be more sophisticated.
Basic implementation of smart contracts for Jetton wallet and Jetton minter in accordance with the Standard.
Contains an example of a simple ICO smart contract.
Semi-Fungible tokens is combination of NFT and FT.
- GOST R ISO / IEC 24713-2-2011. National standard of the Russian Federation. Information technology. Biometrics. Biometric profiles for interaction and data exchange.
- ISO/IEC 19784-1:2006, Information technology - Biometric application programming interface - Part 1: BioAPI specification
- ISO/IEC 19785-1:2006, Information technology - Common Biometric Exchange Formats Framework - Part 1: Data element specification
- ISO/IEC 19785-3:2007, Information technology - Common Biometric Exchange Formats Framework - Part 3: Patron format specifications
- ISO/IEC 19794-2:2005, Information technology - Biometric data interchange formats - Part 2: Finger minutiae data
- ISO/IEC 19794-3:2006, Information technology - Biometric data interchange formats - Part 3: Finger pattern spectral data
- ISO/IEC 19794-4:2005, Information technology - Biometric data interchange formats - Part 4: Finger image data
- ISO/IEC 19794-5:2005, Information technology - Biometric data interchange formats - Part 5: Face image data
- ISO/IEC 19794-6:2005, Information technology - Biometric data interchange formats - Part 6. Iris image data
- ISO/IEC 19794-7:2007, Information technology - Biometric data interchange formats - Part 7: Signature/sign time series data
- ISO/IEC 19794-8:2006, Information technology - Biometric data interchange formats - Part 8: Finger pattern skeletal data
- ISO/IEC 19794-9:2007, Information technology - Biometric data interchange formats - Part 9: Vascular image data
- ISO/IEC 19794-10:2007, Information technology - Biometric data interchange formats - Part 10: Hand geometry silhouette data
- ISO/IEC 19795-1:2006, Information technology - Biometric performance testing and reporting - Part 1: Principles and framework
- ISO/IEC 19795-2:2007, Information technology - Biometric performance testing and reporting - Part 2: Testing methodologies for technology and scenario evaluation
- ISO/IEC 24713-1:2008, Information technology - Biometric profiles for interoperability and data interchange - Part 1: Overview of biometric systems and biometric profiles
1: Artifact (neologism, from Latin. ars — art + lat. factus — made, i.e. "made according to the laws of art") is a product of human creative activity.
2: A non-fungible token is a certificate of uniqueness of a digital object - a digital cryptographic certificate that confirms the right to own a digital asset (digital artifact, file). The use of NFT does not prevent the possibility of copying a digital artifact, it only secures the right of ownership of the original copy of the digital artifact.
[3]: Economics: problems, solutions and prospects DOI 10.26425/1816-4277-2021-11-103-109