NFTs are basically new and unique representations of goods or assets that take the form of digital tokens.

Tokenized the law of non-fungible tokens and unique digital property. In search of a unique and rare token Dieter Shirley invented an NFT standard ERC-721 in September 2017 thus democratising this new type of non-fungible blockchain token. A non-fungible token NFT is a special type of cryptographic token which represents something unique. Non-Fungible Tokens are simply digital files given a unique cryptographic identity and stored on a blockchain.

With that in mind whoever holds the tokens acts as the direct owner of the piece of art itself. Lets say that there is a virtual artwork that is tokenized. Of course a person may still own a separate copy of a digital asset that is linked to a specific NFT.

Part I of this post introduced the recent emergence of Non-Fungible Tokens NFTs. So while 1 BTC is equal to 1 BTC and can be exchanged for each other NFTs dont have similar values. An NFT is a cryptographic tool using a suitable blockchain most commonly Ethereum to create a unique non-fungible digital asset.

Your car has a unique VIN number a box of cereal has a unique serial number social security numbers are a unique set of nine digits and real. Namely non-fungible tokens NFTs. An NFT is therefore non-fungible and enables the creation of or pairing with unique digital assets or identity which enables NFTs to be distinguished from other tokens.

They just do not own the copy with the unique NFT attached. Conversely non-fungible tokens are intended to constitute non-divisible tokens unique and distinguishable representations of a digital or physical asset eg an artwork or a house. It is not possible to cover all these issues here.

Indiana Law Journal Forthcoming Available at SSRN. Once tokenized the digital items become part of the non-fungible token with metadata and unique codes to set them apart from all other tokens. Further attempting to shed light on the actual scarcity and ownership of the tokens and of the digital tokenized works themselves.