NFT for Eternity

Non-fungible tokens (NFTs) are unique tokens stored on a digital ledger – the blockchain. They are meant to represent unique, non-interchangeable digital assets, as there is only one token with that exact data. Moreover, the information attached to the token cannot be altered as on a regular database. While copies of these digital items are available to all, NFTs are tracked on blockchains to provide the owner with proof of ownership. This possibility of buying and owning digital assets can be attractive to many individuals. NFTs are presently at the stage of early adoption and their uses are expanding. In the future, they could become a fundamental and integral component of tomorrow’s web. NFTs bear the potential to become the engine of speech: as tokenized expressions cannot be altered or deleted, they enable complete freedom of expression, which is not subject to censorship. However, tokenized speech can also bear significant costs and risks, which can threaten individual dignity and the public interest. Anyone can tokenize a defamatory tweet, a shaming tweet, or a tweet that includes personal identifying information and these tokenized expressions can never be deleted or removed from the blockchain, risking permanent damage to the reputations of those involved. Even worse, anyone can tokenize extremist political views, such as alt-right incitement, which could ultimately result in violence against minorities, and infringe on the public interest. To date, literature has focused on harmful speech that appears on dominant digital platforms, but has yet to explore and address the benefits, challenges and risks of tokenized speech. Such speech cannot be deleted from the web in the same way traditional internet intermediaries currently remove content. Thus, the potential influence of NFTs on freedom of expression remains unclear. This Article strives to fill the gap and contribute to literature in several ways. It introduces the idea of owning digital assets by using NFT technology, surveys the main uses of tokenizing digital assets and the benefits of such practices. It aims to raise awareness of the potential of tokenized speech to circumvent censorship and to act as the engine of freedom of expression. Yet it also addresses the challenges and risks posed by tokenized speech. Finally, it proposes various solutions and remedies for the abuse of NFT technology, which may have the potential to perpetuate harmful speech. As we are well aware of the challenges inherent in our proposals for mitigation, this Article also addresses First Amendment objections to the proposed solution

DIGITAL ASSETS TRANSMISSION BETWEEN ORGANIZATIONS: MUSIC INDUSTRY CASE

This research addresses the following experiences as a contribution to the topic of Blockchain applications. First, the modeling of a Music Industry revenue distribution problem. Second, the Integration of Blockchain platforms and Legacy software. Third, the design of an algorithm that solves the distribution of Digital Assets across organizations within the Music Industry. Ultimately, the analysis of the Performance of Blockchain platforms (Ethereum and Hyperledger) in terms of Latency and Throughput. Additionally, the purpose of the research is to show that the modeling of a Music Industry payment system is possible using Blockchain Technology. Therefore, the old business model of the Music Industry, which possessed flaws and inefficiencies, could potentially change into a trustless environment benefiting all the participants y paying their contributions instantaneously. Moreover, the necessity of a solution is reinforced by an internship experienced in a MITACS project in conjunction with a company called Membran to design and implement a Blockchain solution that shortens the gap between Spotify and the payment to the Labels and Artists. The system distributes value by automatically calculating payments whenever the Digital Assets (Music Tracks revenue) are imported. The application defines specific roles and variables to simulate the Music Industry. For example, Distributors as an entry point and Artists at the end of the chain. Although, any participant within the network can create agreements and benefit from the distribution. The implementation of this research took the Hyperledger Composer framework to use the Hyperledger Fabric Blockchain as the Private Distributed Ledger, and the public Blockchain Ethereum with the Ganache Client for development purposes. Extensive research of the strengths and weaknesses of these technologies included the descriptions of features like the consensus algorithms, modular architectures, and smart contracts. Ultimately, the performance of these technologies compared Hyperledger Composer and Ethereum in terms of Latency and Throughput. The conclusion of this research pointed that Hyperledger Composer with features like the role-based architecture for applications, Programmable ChainCode (Smart Contracts), and Business Network Definitions, is better suitable for modeling customized solutions and outperforms Ethereum in terms of performance when testing the same number of transactions, the same logic of the chain code and the same machine environment

Navigating the Non-Fungible Token

$91.8 million,$69 million, and $52.7 million. These are the amounts associated with the three most sought after Non-Fungible Tokens (NFTs) sold in 2021. Although NFTs were first created in 2014, 2021 saw a massive rise in their global popularity. In fact, Google reported that in 2021, “How to buy an NFT?” was one of its most searched questions. NFTs can alternatively represent a collectible, a financial instrument, or a permanent record associated with a person, physical or digital object, or data—each presenting an entirely distinct set of legal issues. The lack of governmental expertise in emerging technologies accompanied by the shortage of regulatory guidance has created a frustrating environment for innovators. Despite being one of the fastestgrowing industries in the world, there is a remarkable deficit in legal scholarship regarding these devices. NFTs, with their attendant blockchain and smart contract technologies, can create new paradigms around ownership and identification and inspire entirely new business models. In addition to clarifying what NFTs are, this Article seeks to fill the gap in the literature by analyzing how the specific use of an NFT implicates different areas of the law. Examining the way NFTs function in sectors ranging from fine arts to finance, this Article suggests how tokenization law and policy must advance to leverage the incredible opportunities that NFTs present

The future of tokenizing : art industry in decentralized space

The time being spent online is becoming more important, encouraging companies and industries to follow consumers into the digital space. Along with that, technologies, systems of values, and business models are adopting. The dissertation aims to study the vectors of the Rare Digital Art market development and answer questions about what processes and players will shape this emerging branch of the art industry. This work presents an alternative Value Chain model tailored to Crypto art projects, and concludes that the project cycle will become faster and more activities will fully or partially migrate online. Our research suggests that the rare crypto art market will inherit the technological capabilities of a DeFi market, while maintaining creativity and aesthetics of the art industry. We conclude that validation activities and players will gain an even stronger position in this emerging market, while managerial positions will weaken. Digital Art will move the art industry towards innovative blockchain applications and sophisticated DRM use cases.O tempo passado online está se tornando cada vez mais importante, incentivando empresas e indústrias a seguirem os consumidores no espaço digital, junto com isso estão surgindo tecnologias, sistemas de valores e modelos de negócio. A dissertação tem como objetivo estudar os vetores de desenvolvimento do mercado de Arte Digital Rara, e responder a perguntas sobre quais processos e personagens moldarão este ramo emergente da indústria da arte. Este trabalho apresenta um modelo alternativo de Cadeia de Valor adaptado aos projetos de arte Crypto, e conclui que o ciclo do projeto se tornará mais rápido à medida que mais atividades migrarão total ou parcialmente para online. Nossa pesquisa sugere que o raro mercado de arte criptográfica herdará as capacidades tecnológicas de um Mercado financeiro descentralizado, mantendo a criatividade e a estética da indústria da arte. Concluímos que as atividades de validação e os personagens ganharão uma posição ainda mais forte nesse mercado emergente, enquanto as áreas gerenciais enfraquecer-se-ão. A Arte Digital levará a indústria de arte para aplicativos inovadores de Blockchain e casos de uso sofisticados de DRM

Blockchain technology to secure data for digital twins throughout smart buildings’ life cycle in the context of the circular economy

Blockchain technology (BCT) can be leveraged for digital twins (DT) to enhance data security, collaboration, efficiency, and sustainability in the construction industry (CI) 4.0. This study aims to develop a novel technological framework and software architecture using BCT for DT throughout the lifecycle of smart building projects in the context of the circular economy (CE). The study identifies key challenges and technological factors affecting BCT adoption. It also identifies which project data types can benefit from BCT and the key factors and non-functional requirements (NFRs) necessary for the adoption of blockchain based digital twins (BCDT) in CI 4.0. The study finally proposes a software architecture and smart contract framework for BCDT decentralized applications (DApps) throughout the lifecycle of smart infrastructure projects. The study offers a technological framework – the decentralized digital twin cycle (DDTC) – with BCT to enhance trust, security, decentralization, efficiency, traceability, and transparency of information. The study found that the key data from the project lifecycle relevant for BCDTs relate to the BIM dimensions (3D, 4D, 5D, 6D, 7D, and 8D) and a novel contractual dimension (cD) is also proposed. Additionally, BCDT maturity Level 4 is proposed, leveraging BCT to enhance collaboration, process automation, and data sharing within a decentralized data value chain. The main NFRs for BCDTs are security, privacy, interoperability, data ownership, data integrity, and the decentralization and scalability of data storage. A five layered software architecture and a smart contracts framework using Non-Fungible Tokens (NFTs) are offered to address key industry use cases and their functional and non-functional requirements. The framework narrows the gaps identified around network governance, scalability, decentralization, interoperability, energy efficiency, computational requirements, and the integration of BCT with IoT, BIM, and DT. A cost analysis permitted developing criteria to evaluate the suitability of blockchain networks for BCDT applications in CI 4.0 based on key blockchain properties (security, decentralization, scalability, and interoperability). The study provides an industry-specific analysis and technological approach for BCDT adoption to address key challenges and improve sustainability for the CI 4.0. The findings provide key building blocks for industry practitioners to adopt and develop BCDT DApps further. The framework enables a paradigm shift towards decentralized ecosystems of united BCDTs where trust, collaboration, data sharing, information security, efficiency, and sustainability are improved throughout the lifecycle of smart infrastructure projects within a decentralized CE (DCE)

Next Generation Business Ecosystems: Engineering Decentralized Markets, Self-Sovereign Identities and Tokenization

Digital transformation research increasingly shifts from studying information systems within organizations towards adopting an ecosystem perspective, where multiple actors co-create value. While digital platforms have become a ubiquitous phenomenon in consumer-facing industries, organizations remain cautious about fully embracing the ecosystem concept and sharing data with external partners. Concerns about the market power of platform orchestrators and ongoing discussions on privacy, individual empowerment, and digital sovereignty further complicate the widespread adoption of business ecosystems, particularly in the European Union. In this context, technological innovations in Web3, including blockchain and other distributed ledger technologies, have emerged as potential catalysts for disrupting centralized gatekeepers and enabling a strategic shift towards user-centric, privacy-oriented next-generation business ecosystems. However, existing research efforts focus on decentralizing interactions through distributed network topologies and open protocols lack theoretical convergence, resulting in a fragmented and complex landscape that inadequately addresses the challenges organizations face when transitioning to an ecosystem strategy that harnesses the potential of disintermediation. To address these gaps and successfully engineer next-generation business ecosystems, a comprehensive approach is needed that encompasses the technical design, economic models, and socio-technical dynamics. This dissertation aims to contribute to this endeavor by exploring the implications of Web3 technologies on digital innovation and transformation paths. Drawing on a combination of qualitative and quantitative research, it makes three overarching contributions: First, a conceptual perspective on \u27tokenization\u27 in markets clarifies its ambiguity and provides a unified understanding of the role in ecosystems. This perspective includes frameworks on: (a) technological; (b) economic; and (c) governance aspects of tokenization. Second, a design perspective on \u27decentralized marketplaces\u27 highlights the need for an integrated understanding of micro-structures, business structures, and IT infrastructures in blockchain-enabled marketplaces. This perspective includes: (a) an explorative literature review on design factors; (b) case studies and insights from practitioners to develop requirements and design principles; and (c) a design science project with an interface design prototype of blockchain-enabled marketplaces. Third, an economic perspective on \u27self-sovereign identities\u27 (SSI) as micro-structural elements of decentralized markets. This perspective includes: (a) value creation mechanisms and business aspects of strategic alliances governing SSI ecosystems; (b) business model characteristics adopted by organizations leveraging SSI; and (c) business model archetypes and a framework for SSI ecosystem engineering efforts. The dissertation concludes by discussing limitations as well as outlining potential avenues for future research. These include, amongst others, exploring the challenges of ecosystem bootstrapping in the absence of intermediaries, examining the make-or-join decision in ecosystem emergence, addressing the multidimensional complexity of Web3-enabled ecosystems, investigating incentive mechanisms for inter-organizational collaboration, understanding the role of trust in decentralized environments, and exploring varying degrees of decentralization with potential transition pathways

THE LEGAL FRAMEWORK OF ART INVESTMENTS – THE APPLICABILITY OF EU and US INVESTOR PROTECTION REGULATIONS TO THE ART MARKET

In the face of increasing inflation rates and global political as well as economic turmoil, investors are looking for alternatives to securities and bonds to store values. Among those asset classes benefitting from this trend is art. Record-breaking results at auctions, a quick market recovery following the pandemic as well as stable compound annual growth rated of the art market have stirred the interest of a growing number of investors in this form of alternative investment which promises stability in times of economic uncertainty. This trend is furthermore spurred by technological advancements; especially DLT-based business models add to the practicability and accessibility of investment models. For the art market, which previously used to be an investment option reserved rather for high-net worth individuals, the digitalization of values brings the opportunity to address new market participants. As an example, concepts such as the “tokenization” of artworks and “fractional ownership” invite a broader public, who would otherwise hardly have access to this asset. By extending the offer to invest in an artwork to many instead of just to a single collector, the costs for each individual investor are reduced to only a share of the actual sales price. Accordingly, art has become a widely recognized alternative asset class, which is constantly compared to conservative forms of investment, such as stocks and bonds. Against this background, the question arises as to what extent art is regulated as an asset class. The importance of an in-depth analysis of the applicable investor protection rules becomes even more apparent in consideration of the opacity of the art market, which also accounts for a reason why this sector has been only scarcely addressed by legal academia so far. The relatively new practical accessibility of the art investment market stands in stark contrast to the lack of available information on the traded properties. The deep-rooted tradition of discretion in art trades continues to shroud a cloak of silence over essential data on past and ongoing sales, with the result of there being an insufficient informational basis for investors to predict price developments. This dissertation project aims to shed light on the opaque structures of art investments and examine the currently applicable level of investor protection rules in direct comparison to that in traditional securities markets. The jurisdictional scope of this paper extends to both, the financial market laws of the European Union as well as of the United States of America. In this context, also the question will be raised as to how art investment instruments can be categorized from a legal point of view, in particular, whether they fit into the existing framework of financial instruments

Proceedings of the Conference on Production Systems and Logistics: CPSL 2022

[no abstract available