Just as video killed the radio star, so did the digital transformation kill (or at least convert) traditional media. While “going digital” became the bane of many traditional media companies that struggled to make the leap to an online world, NFTs may be the digital savior that some of these companies need. Imagine that you are a company with a known brand and sizeable catalog of media with potential historical and cultural significance. Yet, you’ve found it difficult to monetize these assets in a world that abhors paywalls and often takes an overly broad view of what constitutes “fair use.” If only there were a way to highlight the unique significance of these assets and tap into the latent collector in all of us. Anyone who follows us already knows that NFTs can serve this very function.
Anyone who follows the crypto space knows that non-fungible tokens (NFTs) are all the rage of late. We have written on the subject previously on multiple occasions, particularly with respect to NFTs that tokenize works of digital art. (For a primer on digital art NFTs, check out prior posts here and here.)
We previously wrote on non-fungible tokens (NFTs) that represent art and how that concept is starting to be embraced by the art world. Enter Banksy, a celebrated graffiti artist and political activist whose real name and identity remain unconfirmed. For the past couple of decades, Banksy’s popularity has grown, including a celebrity following, and some of his art pieces have fetched $500,000 or more. One of Banksy’s most famous stunts was having one of his pieces, Girl with Balloon, self-destruct right after being sold at a Sotheby auction. (A shredding mechanism was built into the golden frame holding the work and, as soon as the auctioneer’s gavel fell, selling the piece for about $1.4 million, the piece started passing through the frame which started shredding the canvas.) The winning bidder ultimately opted to keep the piece in its shredded form, and Sotheby’s described the event as “the first work in history ever created during a live auction.” The piece has since been on display at a prestigious German art gallery, and experts suspect the value has increased at least by 50 percent. Go figure.
Non-fungible tokens (or NFTs) are unique blockchain-based tokens that can represent almost anything, including physical assets. NFTs have been growing significantly in popularity in recent years because of this potential to “tokenize” anything and provide a way to transfer ownership of digital assets to holders. An NFT can be described as a certificate of authenticity. Most NFTs today are based on the Ethereum blockchain, but some other blockchains like TRON and NEO also support NFTs.
Building upon the California Consumer Privacy Act (CCPA), on November 3, 2020, Californians voted to approve Proposition 24: the California Privacy Rights Act (CPRA). The CPRA does not replace the CCPA but rather adds to and modifies the language of the CCPA to strengthen consumer privacy rights and perhaps, in the future, form a basis for General Data Protection Regulation (GDPR) data transfer adequacy. While the CPRA is a landmark legislative accomplishment for privacy rights, it creates new problems for blockchain-based technologies, particularly those provisions regarding the right of correction and principles of data minimization and storage limitation.
We’ve written frequently about the distributed ledger technology (DLT) and the blockchain—on the interesting variations of the technology, its ability to bolster other technologies and its potential applications on everything from team giveaways to trading platforms (be they for cryptocurrency or energy commodities). In “Blockchain-Based Tokenization of Commercial Real Estate,” colleagues Josh D. Morton and Matt Olhausen examine the real-world application of tokenization—the process of representing a fractional ownership interest in an asset with a blockchain-based digital token—in commercial real estate.
With bitcoin prices rocketing nearly 300% from trough to peak when COVID-19 lockdowns were announced in March 2020 and then relaxed in July 2020, I thought I would revisit a blockchain company we discussed earlier last year to see how it has progressed and been valued by the financial community: Overstock.
With great power comes great responsibility. 5G is the next generation of 3GPP technology. Along with having the potential to facilitate the next leap in connectivity, 5G technology supremacy also has the power to define the geopolitics of the next century. As the global battle for 5G dominance plays out, companies are driving hard to secure coveted Standard Essential Patents (SEPs) encompassing 5G technology. The victor will secure substantial revenue and money flow in the form of patent royalties.
For all the excitement and promise of blockchain-based technology, it’s vital to remember that the very “newness” of a technology can lead to issues of basic legal compatibility. Few if any technologies magically create their own regulatory framework whole cloth, after all. For this reason, technology providers wishing to use the blockchain—or related distributed ledger technology (DLT)—in their own offerings necessarily must pay careful attention to how their particular blockchain-based technology will interact with the established (and evolving) contracts, laws and customer expectations encountered in the marketplace. Here are three of the biggest issues that await providers: