The focus of the study is on NFTs, also known as non fungible tokens and NFT-marketplaces. The paper is structured into three parts, the first of which describes the process of the emergence of NFTs as a new category of cryptoassets and the reasons for their appearance. Then, in the second part of the paper, the functioning of the NFT marketplaces will be examined, with a specific focus on the different ways in which NFTs are sold through auctions. Finally, in the third part, the study is concluded with an examination of the role of non fungible tokens as alternative investment assets in terms of their portfolio diversification function.
In my point of view, Bitcoin (BTC) is the best-known cryptoasset in the crypto-culture, and it is therefore appropriate to use the date of BTC's emergence as the starting point for an examination of the process and current regulatory challenges of the appearance of non-fungible tokens (NFTs) as a distinct cryptoasset class.
The first so-called 'genesis block' of Bitcoin was created in 2009 by the mysterious Satoshi Nakamoto, whose aim was to create a decentralised payment instrument independent of the centralised banking system[1]. In retrospect, the blockchain technology behind the BTC has had an era-changing impact, which has also affected the financial sector.[2] Just to note that the blockchain technology itself was not a new phenomenon, as it already existed and was used in Estonia in the 2000s when the pilot project X-tee[3] was launched.[4]
Blockchain can be defined as a digitally distributed, decentralized, public ledger, its a type of distributed ledger (DLT). where, based on a consensus algorithm, all members of the network participate in the network operations.[5] The DLT use independent nodes (computers) in order to record, share and verify transactions, which transactions are recorded with an immutable cryptographic signature called a hash.[6] The DLT allows, among other things, the rapid and secure processing of transactions.[7] The distributed ledger system itself is distributed over a network of several nodes where, based on a consensus algorithm, all nodes of the network participate in the transactions that take place on the network. The blockchain technology works in such a way that, for example, a node that starts a transaction places the transaction in a block and then notifies the other nodes
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of the network that it wants to execute the transaction based on the algorithm of the network. Then, when all the computers in the nodes of the network have checked and approved the block of the node starting the transaction, it attaches it to the next block in the blockchain in its own record, thus completing the transaction and building the blockchain.[8] In other words, these transactions form a chain, linked in chronological order, block by block.[9].The entire chain is protected by complex mathematical algorithms, guaranteeing the integrity and security of the data.[10] Based on this, we can speak of DLT in a broad sense, of which one form is blockchain in a narrow sense.
In my opinion, the emergence of BTC blockchain technology is relevant, because it marked the birth of the first generation of blockchain technology. Then the second generation of block-chain technology, in the form of Ethereum (ETH), appeared in 2014. One of the major advantages of this 2nd generation technology was that it allowed users to create different applications (dApps), programs on a global distributed system.[11]
There is no doubt that Ethereum has opened new doors for the crypto sector. The next milestone was the creation of the so-called ERC-20 technical standard for smart contracts in 2015.[12] Tokens issued on the Ethereum blockchain are based on the ERC-20 technical standard. The ERC-20 technical standard plays an unquestionable role in the tokenisation process and in building and consolidating the token economy[13] and dApps.[14] Its importance was first demonstrated in 2017 during the golden age of token-based community financing, also known as initial coin offerings (ICOs).[15]
Another characteristic feature of the ERC-20 technical standard is, that it's a so called fungible token. The fungibility is not only present in the crypto sector but also in the traditional financial sector.[16] For example, our domestic currency, the Hungarian Forint (HUF), is also a fungible fiat currency, because for a banknote with a denomination of HUF 5,000 we can get a banknote with the same denomination, or a banknote with several smaller denominations, for example 10 banknotes with a denomination of HUF 500. Consequently, neither the Hungarian domestic currency nor any other fiat money is unique in the way the ERC-20 based tokens are. There is no problem with this as long as tokens are used for transactions and other services in the crypto ecosystem.
Over time, however, there was a market demand for tokens containing unique data. As a result, the so-called ERC-721 technical standard was appeared in 2018, which allowed the creation of non-fungible tokens (NFT).[17] I think, that the emergence of the ERC-721 technical standard marked the beginning of the 'crypto renaissance'. This era is characterised by the trading of various crypto collectibles on NFT marketplaces and the spread of NFT objects in the metaverse. This is thewhere the trading of different crypto collectibles on NFT marketplaces and the spread of NFT objects in the metaverse is typical.
In this paper, I will focus on the functioning of NFTs and NFT marketplaces,
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the copyright aspects of NFTs, and the legal aspects of NFTs as new alternative investment crypto-assets, without discussing the technical standards. Regarding the technical standards, I would like to note that although ERC-721 based NFTs have conquered the crypto sector, at the same time market needs have required further technical development. The common feature of the enhanced technical standards is that they always offer some additional functionality that can combine the features of both ERC-721 and the traditional ERC-20 technical standards. An example of a practical manifestation of this evolution is the Enjin Marketplace, or the team behind Enjin, which developed the ERC-1155 technical standard.[18] The ERC-1155 enables the bulk transmission of multiple fungible tokens and non-fungible tokens (NFT) faster than ERC-721.[19]
Based on the above, we can define a non-fungible token as a unique set of data that is recorded on the blockchain network, so that the NFT as a digital asset can represent either physical or digital objects or creations.[20] In practice, an NFT can be a painting or a digital drawing, a domain name, a scientific thesis or even a social media post, such as the first Twitter post by Twitter CEO Jack Dorsey, which sold for $2.9 million.[21]
The very first NFT was created in 2014 by digital artist Kevin McCoy and tech entrepreneur Anil Dash, ahead of the appearance of the ERC-721 technical standard, and is called 'Quantum'.[22] The reason for the creation and justification of NFTs can be found essentially in the art and design sector. Due to the fact that the art and design industry faces a number of persistent problems, such as pricing works appropriately, ensuring fair use and preventing the distribution of counterfeits. The economic value of a work of art is influenced by several external factors, such as the structure of the art market, the network of art dealers and their activities.[23] In addition, as an economic aspect,[24] the motivation of the artists themselves,[25] the amount of energy they put into the creation of a work, can be influenced by the expected sale price of the artwork. The problem of pricing artworks arises in practice when the amounts actually paid are often lower than the essentially realistic demands for artistic remuneration. In the context of fair use, there is a problem of lack of transparency regarding the fair use of successfully sold works of art and the monitoring of royalties received. In the context of fair use, there is a problem of lack of transparency regarding the fair use of successfully sold artworks and the monitoring of royalties received.[26] In addition, the production and trade of fake artworks is also a serious problem. As the black market[27] in artworks is growing, artists may suffer serious financial losses in addition to the legal damage they suffer. The counterfeiting and illegal trade in artworks is largely driven by economic interests, as the sale of a forgery of a valuable artwork can
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generate a large profit for the fraudulent seller.[28] Regardless of the fact that it is illegal, the demand for counterfeits is there, it is a real problem. And the driving force behind the black market in counterfeits is the social demand that original works of art are unique and expensive, that they are not everyday 'consumer' goods like a Netflix series, and that they are therefore status symbols, their possession clearly suggesting the superior inancial status of their owners. Thus, the desire to own works of fine art, intensifies the black market trade in cheaper counterfeits.[29]
The problems of the art and design sector listed above can be solved by NFTs as an alternative solution. The economic exposure of artists, the problem of pricing, can be solved by NFTs by allowing the artist to set the price of an NFT and to choose the way of selling, which can be fixed-price or auction based on bidding. The NFT technology also ensures transparency of fair use, as all transactions take place on the block-chain and royalties are credited directly to the artist's wallet, so that their tracking and flow is automated, without the need for a collecting society. In these terms, NFT can be used as a means of supporting artistic activity in a narrow sense, or, in a broader sense, as a means of inancing the realisation of any creative project.
At the same time, even though the counterfeiting of NFTs is logically impossible and technically impracticable,[30] it would be a mistake to believe that everything in the NFT marketplace is done according to the collectively accepted standards of the crypto-society.
While it is true that there are no counterfeits, there is, for example, copying and reworking of works by a recognised artist or of works released in the context of a successful NFT project. Copies typically rework or add minor modifications to the key figure of the original idea. The modification can mean changing the name of the project, but it is also common to process the character in a different style, for example, to display a pixel artwork[31] in 3D. A practical example of copying NFTs is the case of CryptoPunks and CovidPunks. In this case, the original idea was the CryptoPunk by Larva Lab, which was a great success in the NFT market, and then CovidPunks, which, apart from a partial name change, differed from the original idea in that the characters' faces were masked, but both projects were done in pixel art style. In the following, the historical background of the NFTs is presented.
In my opinion, NFTs are part of visual culture,[32] within which the academic literature distinguishes two major groups. The first group includes works of visual art, while the second group includes objects and phenomena that are not created with artistic intentions but can be perceived and acted upon visually.[33] In my opinion, NFTs belong to the first group, as NFTs are unrepeatable works that appear on the blockchain as a unique set of data, and their artistic value can only be interpreted visually. In contrast, the latter category includes, among others, visual works
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that have less artistic value, such as the photos we take with our smartphones in our daily lives.
After the classification of the NFTs into the group of visual arts, I identify lithographs as the broad historical predecessors of the NFTs, also belonging to the group, from earlier periods. Lithography (stone printing, stone drawing) is a technique once used in printing technology, which was particularly significant in that it created a link between the artist and the public by appearing as illustrations and folios in magazines and books. Lithographs have played a decisive role in the history of the development of art, not primarily in terms of quality, but in terms of artistic life, not forgetting the fact that many excellent works of art have come out of the hands of Hungarian artists.[34] In Hungary, the golden age of lithography dates back to after the 1848-49 Revolution and War of Independence, as the historical event inspired the lithographers of the time, who wanted to express and publish the historical events with their drawings. Regardless of whether a lithographic print depicted a historical event or a portrait, its value increased over time.[35] I see the closest link between NFTs and lithography in two factors. Firstly, the increase in value over time, which is a feature of both NFTs and lithographs. On the other hand, the networking and community-building that is particularly crucial for NFTs - the success of an NFT project is also greatly influenced by the community on which it is built.
Finally, in the context of examining the historical background of NFTs, I would like to mention the work of pioneers of digital art, such as John Whitney, Charles Csuri and Larry Cuba. The relevance of their work is that they combined technology with artistic creativity, resulting in such epoch-making works as the 1986 short film 'Calculated Movements' which is attributed to Larry Cuba.[36] Because of their artistic activity, I believe they proved that computer-generated digital works can be included in the traditional artworks
Traditional offline auctions can basically be divided into two main groups, so we can distinguish between official and commercial auctions.[37] A typical practical manifestation of official auctions is, for example, the auctioning of foreclosed properties at official auctions, while commercial auctions are associated with voluntary, for-profit offline or online auction houses. The academic literature distinguishes between so-called Dutch and English auction techniques based on the bidding technique used. In the Dutch auction, the bidding starts from the starting price downwards, with smaller and smaller amounts, and then, once someone has made the current bid, they can only bid again with a higher bid. The English auction technique, on the other hand, accepts only bids that rise from the starting price. Today, the most widely used bidding technique is the open-bid ascending-bid auction, which has two distinct systems, the German and the English. The German bidding system
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is characterised by the fact that the bidding price determines the whole auction, as it is impossible to go below the bidding price, whereas in the English system the estimate is set and the actual bidding price is determined by the auctioneer at the auction.[38] Another approach distinguishes between auctions on the basis of their accessibility, i.e. auctions can be public or private. But in my view, this distinction is of marginal relevance for online auctions and NFT marketplaces. The different auction systems described above were transposed into the digital space at the same time as the emergence of online auction houses, and are now fully applied.
The origins of online auction houses date back to the turn of the millennium. In the early 2000s, the emergence of web 2.0[39] and its rapid take-off, not forgetting the bursting of the '.com' bubble, marked a turning point for the web world.[40] The second generation of the web reformed the internet environment, with the emergence of dynamic websites alongside static HTML websites.[41] Then, from around 2009, as the online community grew stronger and user interactivity increased, more and different online businesses and platforms emerged.[42],[43] This was followed by the emergence of the platform economy, a term that has become a dogmatic concept in the international arena.[44] Then came the proliferation of different, specific platforms, but basically, today's Internet platforms can be distinguished according to their operating methodology and can be divided into two major categories: horizontal[45] and vertical online platforms. The main difference between the two categories of platforms can be found in the target groups. Horizontal platforms are online platforms that target a large audience with a general interest. Vertical platforms, on the other hand, are online platforms whose target audience is narrower, focused on a specific product and/or service.[46] In this context, it should be noted that, in my view, both online auction houses and NFT marketplaces are vertical platforms, since their target audience is narrow, consisting of traditional and crypto enthusiasts.
The consolidation of the platform economy and the strengthening of online commerce have led to a change in consumer buying habits,[47] but the situation has been different for the sale of works of art through online auctions. While it is true that online galleries and auction houses are present in the digital space, they have not been able to fully play the same role as their offline counterparts. One reason for this is that the vast majority of art lovers still want to see the work of art in 'physical reality' before buying it, which is not possible in e-commerce,[48] not including virtual reality. However, the coronavirus epidemic has contributed greatly to the consolidation of the online art market and has had a positive impact, as it has shifted online auction sales in a positive direction and may also lead to an increase in online engagement of traditional offline auction houses.[49]
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While fine arts can be sold both offline and online in auction houses and galleries, NFTs can be sold and traded 1) natively and 2) through secondary market on so-called NFT marketplaces.[50]
In the case of native sales, we have the possibility to mint NFTs from the project's standalone web interface (dApp),[51] directly from the smart contract linked to the NFT. Native sales will vary depending on the blockchain technology used, for example for a Solana or Ethereum-based project, but beyond that, the success of a given NFT project will be influenced by a number of external factors, such as the uniqueness of the creation, the community around the NFT project, and the usefulness of the project. From the project owner's point of view, the choice of the blockchain network on which to deploy the NFT project is an important economic consideration, as the choice of blockchain affects both the smart contract deployment costs and the gas fees[52] on the investor/buyer side. However, I consider the most important factor to be the utility of the project, the service attached to the NFT, taking into account that an NFT is mainly bought by investors in order to resell it later for a profit and/or to have some service attached to it that only NFT owners can use. Consequently, NFTs can be distinguished between traditional NFTs and uNFTs (utility+NFTs), a distinction based on the function-based distinction used for fungible tokens.[53]
After sold out an entire NFT collection, NFT owners or holders[54] have the opportunity to resell NFTs on the secondary market, i.e. the NFT marketplaces.[55] Based on the basic classification of traditional auctions described above, NFT marketplaces can be used to conduct voluntary and profit-oriented i.e. commercial, auctions. Regardless of their names, NFT marketplaces offer essentially the same sales opportunities, the relevant difference being the marketplace that allows the sale of NFTs issued on which blockchain, as the name may indicate. For example, OpenSea may trade NFTs on the Ethereum blockchain, while SolSea, MagicEden may trade NFTs on the Solana blockchain.
In the following, without being exhaustive, I will limit myself to describing the most commonly used sales methods available on the NFT marketplaces on the OpenSea platform, which are the following:
1) English auction,
2) Dutch auction (where the price is continuously reduced to a set minimum),
3) Fixed/set price
4) Bundle sale
In the English auction, we can set an auction price to which only higher bids can be submitted, but we also have the option to sell NFTs to the highest bidder within a set time frame. In the Dutch auction, we have to set a starting price and a floor price below which no bids can be received. In this type of auction, the price is continuously reduced until the set minimum price is reached.
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In a fixed or fixed price sale, you can set an amount at or above which you can sell NFTs. Boundle or bundle sales are useful if you want to sell more NFTs to one customer, as this type of sale allows you to sell more NFTs in one transaction, which results in significant gas price savings.[56]
In the context of transactions carried out on the OpenSea platform, our obligation to pay gas fees can take one of three forms, 1) one-time 2) recurring or 3) exempt from gas fees. In auctions, our obligation to pay gas fees arises in the following cases: acceptance of a bid, cancellation of an NFT placed at auction, cancellation of a bid and the purchase of an NFT. In the case of the purchase of an NFT, the liability of gas fees depends on the type of sale, in the case of a fixed price ad the buyer pays gas fees, whereas in the case of an auction, the seller who accepts the offer pays the gas fees, and in this context it is worth mentioning the case of the gift of an NFT, since in this case also the gift-giver pays gas fees.[57]
Finally, in the context of NFT marketplaces, I think it is necessary to mention the visual inflation that occurs when browsing NFT marketplaces displaying millions of NFT works over long minutes. The phenomenon of visual inflation was first defined by Helmut Langer in 1985 when he studied a street scene in a large city.[58] He found that there is a limit beyond which a person cannot perceive a large number of visual stimuli, even though they are present. Above the conscious level, visual stimuli almost cancel each other out, and are almost marginal to perception.[59] In my view, the effect of visual inflation can reduced by carrying out targeted market research, targeted NFT project searches, as a result of which we limit ourselves to examining only the information and projects that are relevant to us.
In the process of selling NFTs natively and reselling them on the secondary market, the ownership position is constantly changing and the position of the copyright holder may vary from project to project, but this is largely reflected in the roadmap.
In this sub-chapter, I will examine (in a non-exhaustive way) the links/parallels between traditional arts, treasures[60] and NFTs as alternative investment assets in terms of investor scope, liquidity and profit expectations.
Visiting auction houses and galleries is a popular activity, not only for art enthusiasts, but also for the financial community. Art treasures are an alternative investment assets[61] that investors buy mainly for portfolio diversification, but also as a means of self-care and to provide for their retirement.[62] Among the investors, the group of ultra-high-networth individuals (UHNWI),[63] who are keen to buy art treasures, deserves special mention.
As an alternative investment asset, the liquidity of arts and treasures is different from that of traditional financial or crypto-assets. Traditional financial instruments (e.g. shares, bonds) are
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traded on stock and commodity exchanges. These regulated marketplaces are characterised by the fact that they bring sellers and buyers together in one place (consolidated marketplace), which means that participants can easily enter and exit different (buy and sell) positions, providing liquidity to the market. Crypto exchanges can be divided into two categories according to their operation, DEX (decentralised exchanges)[64] and CEX (centralised exchanges),[65] with the emergence of hybrid solutions. But regardless of how they operate, crypto exchanges are essentially for trading cryptocurrencies that are liquid and highly volatile.
Traditional art treasures and other valuable collectables are auctioned through an auction house - in a centralised way - at fixed times, offline or online. In this context, it should be noted that auction houses not only provide a platform for the trade in traditional artworks, but also for NFTs, adapting to new market trends. An example is Christie's, one of the most prestigious British auction houses, which sold an NFT by Michael Joseph Winkelmann (also known as: Beeple) for 69 million US dollars in March 2021.[66] However, due to the restricted trading arena and the auctions held a certain number of times a year, works of art and other valuable collectibles are considered to be limited-liquid assets. On the investor side, the limited liquidity of arts and treasures allows for the examination of prices at irregular intervals, which results in the use of estimation to determine the price of arts and treasures, which can be based on two methods: 1) hedonic regression and 2) repeat sales regression (RSR).[67]
Artworks that have been purchased are not alienated by investors for a long period of time and are considered a safe haven.[68] Art dealers believe that art is essentially a medium-term investment, so that the expected profit can be realised over 5-10 years, and that the rate of profit can be influenced not only by the value of the object but also by the history, the story and events associated with the art.[69] Thus, for example, a contemporary work sold after three years[70] but within 10 years will yield a higher profit than an impressionist work sold under the same conditions. By contrast, an Impressionist work sold after 10 years and within 45 years will yield a higher return than a contemporary work.[71]
By analogy with the above, I make the following observations for NFTs. n the one hand, the NFTs investor group, beyond the subjects identified in the traditional art treasures, is extended to include crypto investors. The trading space is primarily the NFT marketplaces, but traditional auction houses can also auction NFTs, as the example cited above has shown. The motivation of investors behind the purchase of NFTs can, in my view, also be predominantly identified in the realisation of profits in the medium to short term. I see a difference, however, in that in the case of NFTs, the function as a status symbol is coming to the front and is being appreciated on social media sites.
The real value of an NFT can be influenced by a number of factors, such as uniqueness, hype effect or the ser-
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vice and/or utility associated with the NFT. NFTs that have a utility associated with them can be called uNFTs (utility NFTs), as opposed to traditional NFTs which are essentially digital creations - crypto creations - on a blockchain. However, with regard to the valuation of NFTs, I consider the statement of the Spanish jurist Antonio de Covarrubias y Leyva to be relevant, He said that 'The value of a good does not depend on its true nature, but on people's opinion, even if this opinion is completely wrong.'[72]
Finally, from an economic point of view, the most marked difference between the so-called negative costs. This is because storing a traditional work is a significant extra expense compared to an NFT. The reason for this is due to the physical nature of the art or treasure. Taking into account that while the storage and transport of an artwork even appears as a recurring cost element, similar costs do not have to be reckoned with in the case of an NFT, because the NFT exists only in digital form, so its storage and transport costs are negligible.
In my view, the relevance of NFTs can be found both in the art and design sector and in the metaverse.[73] In the art and design sector, NFTs can be used to support artistic activities and to finance the realisation of any project, not only artistic ones.
Outside the art and design sector, the importance of NFTs in the evolving and constantly developing metaverse will also crystallise, with the forerunners of this emerging in the so-called play-to-earn[74] blockchain-based games. But NFTs will also reform the current royalty system and the process of distribution and promotion of music in the music sector, with the consequence of a market-shaping effect, and in the long term may also lead to the replacement of the role of intermediaries such as collecting societies. Beyond this, NFTs can also bring about changes in everyday events and processes such as customer discounts, point collections and various coupon promotions.
Finally, in my view, as the trend of transformation into NFTs intensifies in the near future and more and more objects appear in the metaverse as NFTs, a new generation of declarations of rights is expected to emerge. The novelty of these declarations of rights is that their object is the NFT in the metaverse, which also has a value and can only be understood in the physical world as an abstraction. On this basis, I consider it conceivable that an NFT apartment or NFT mansion, for example, existing in the metaverse, will be the subject of a lease contract. And under the lease contract, the landlord of the NFT apartment may claim consideration, which could be either cryptocurrency or fiat money, depending on the mutual agreement of the contracting parties. [Manuscript completed in June, 2022.] ■
NOTES
[1] Satoshi Nakamoto: Bitcoin: A Peer-to-Peer Electronic Cash System. Available: https://bitcoin.org/bitcoin.pdf (2022. 06. 16.)
[2] Bujtar Zsolt: Central bank-issued digital currencies: - ready, steady, go? In: Szilovics Csaba; Bujtar Zsolt; Ferencz Barnabás; Breszkovics Botond; Szívós Alexander Roland (szerk.) Gazdaság és Pénzügyek a 21. században II. - Konferenciakötet = Business And Economy In The 21st Century Ii. - Conference Proceedings. 2020. Pécs, Magyarország. Pécsi Tudományegyetem, Állam- és Jogtudományi Kar. 113-123. p.
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[3] The predecessor of X-Road.
[4] Breszkovics Botond: e-Észtország: Kriptoszabályozás. In: Szilovics Csaba, Bujtár Zsolt, Ferencz Barnabás, Szívós Alexander Roland, Breszkovics Botond, Gáspár Zsolt (szerk.): Gazdasági kihívások a XXI. században. Konferenciakötet. Pécsi Tudományegyetem Állam- és Jogtudományi Kar Pénzügyi Jogi és Gazdasági Jogi Tanszék. 2021, Pécs, 41-54. p.
[5] Adam Hayes: Blockchain explained. Available: https://www.investopedia.com/terms/b7blockchain.asp (2022. 06. 16.)
[6] Aaron Wright, Primavera De Filippi: Decentralized Blockchain Technology and the Rise of Lex Cryptographia. Electronic Journal 2015/3, 4-8. p.
[7] Katherine Purvis: Blockchain: what is it and what does it mean for development? Available: https://www.theguardian.com/global-development-professionals-network/2017/jan/17/blockchain-digital-technology-development-money (2022. 06. 16.)
[8] Dylan Yaga, Peter Mell, Nik Roby, Karen Scarfone: Blockchain Technology Overview. ArXiv. 2018. Abs/1906.11078 évf. 7-17. pp. (doi: 10.1002/https://doi.org/10.6028/NIST.IR.8202)
[9] International Bank for Reconstruction and Development / the World Bank: Distributed Ledger Technology (DLT) and Blockchain FinTech Note. No. 1. 1-2. p. Available: https://documents1.worldbank.org/curated/en/177911513714062215/pdf/122140-WP-PUBLIC-Distributed-Ledger-Technology-and-Blockchain-Fintech-Notes.pdf (2021. 12. 11.)
[10] European Central Bank: Distributed Ledger Technology. Available: https://www.ecb.europa.eu/pub/annual/special-features/2016/html/index.en.html (2022. 06. 16.)
[11] Vitalik Buterin: Ethereum Whitepaper. Available: https://ethereum.org/en/whitepaper/ (2022. 06. 16.)
[12] Fabian Vogelsteller: ERC: Token standard. Available: https://github.com/ethereum/EIPs/issues/20 (2022. 06. 16.)
[13] Shermin Voshmgir: Token Economy: How the Web3 reinvents the Internet. Token Kitchen, Berlin, 2020, 17. p.
[14] A decentralised application is an application that can operate autonomously, basically through the use of smart contracts, that runs on a decentralized blockchain system.
[15] Breszkovics Botond: Az elsődleges nyilvános érmekibocsátás előtti jogi teendők Európában. In: Bujtár Zsolt, Szívós Alexander Roland, Gáspár Zsolt, Szilovics Csaba, Breszkovics Botond (szerk.) Kriptoeszközök világa a jog és gazdaság szemszögéből. Pécsi Tudományegyetem, Állam- és Jogtudományi Kar, Pécs, 2021, 136-158. o.
[16] Ferencz Barnabás: The Tide is Turning - The Change from Shareholder Approach to Stakeholder Approach in Light of The Business Roundtable's 2019 Statement on the 'Purpose of a Corporation' ECONOMICS & WORKING CAPITAL, 2021, 57-62. p.
[17] Erc721.org. http://erc721.org/ (2022. 06. 16.)
[18] Enjin.io: ERC-1155: The Multi Token Standard. Available: https://enjin.io/about/erc-1155 (2022. 06. 16.)
[19] The ERC-1155 standard allows to make massive transfers natively of the tokens included in a smart contract. In this way, if, for example, we have a series of NFT tokens or fungible tokens (or both), we can transfer several of these tokens in the same operation, making a single operation make this transfer effective.
[20] Clifford Chance: Non-fungible tokens: The global legal impact-thought leadership. 2. Available:https://www.cliffordchance.com/con-tent/dam/cliffordchance/briefings/2021/06/non-fungible-tokens-the-global-legal-impact.pdf (2022. 06. 16.)
[21] Taylor Locke: Jack Dorsey sells his first tweet ever as an NFT for over $2.9 million. Available: https://www.cnbc.com/2021/03/22/jack-dorsey-sells-his-first-tweet-ever-as-an-nft-for-over-2point9-million.html (2022. 06. 16.)
[22] Sarah Cascone: Sotheby's Is Selling the First NFT Ever Minted-and Bidding Starts at $100. Available: https://news.artnet.com/market/sothebys-is-hosting-its-first-curated-nft-sale-featuring-the-very-first-nft-ever-minted-1966003 (2022. 06. 16.)
[23] Tóth Dávid: A pénz- és bélyegforgalom biztonsága elleni deliktumok büntetőjogi és kriminológiai aspektusai. Pécsi Tudományegyetem, Állam- és Jogtudományi Kar, Pécs, 2020, 211. p.
[24] Angelini Francesco, Castellani Massimiliano: Understanding the artwork pricing: some theoretical models. 2. Available: https://www.researchgate.net/publication/323615588_Understanding_the_artwork_pricing_some_theoretical_models (2022. 06. 16.)
[25] "Creative artists are those who find a powerful visual solution to a problem that has never been formulated before." Getzels Jacob W, Csikszentmihalyi Mihály: The Creative Vision: A Longitudinal Study of Problem Finding in Art. Wiley (Publisher). New York, 1976, 77. p.
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[30] It is not technologically possible to create two identical NFTs.
[31] Pixel art is a form of digital art in which works of art are created using image editing software and edited at the pixel level.
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[39] The term web 2.0 was officially coined in 2004 by Dale Dougherty, Vice President of O'ReillyMedia Inc. Paul Anderson: JISC Technology and Standards Watch. Technology & Standards WatchWhat is Web 2.0? Ideas, technologies and implications foreducation. Available: http://www.ictliteracy.info/rf.pdf/Web2.0_research.pdf (2022. 06. 16.)
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[43] Ződi Zsolt i. m.: "Platforms are Internet sites that manage data flows to conduct economic or social interactions. They are not simply technical entities but a specific mix of data flows, algorithms, business models and governance"
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[50] An NFT marketplace can be a standalone platform, but it can also be a complementary service, such as the NFT trading platform operated by the Binance crypto exchange.
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[51] Minting refers to the process of converting a digital file into a crypto collectible or NFT on the blockchain.
[52] Gas fees are costs that users pay in exchange for the processing and validation of transactions on the blockchain.
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[60] A work of art or an artefact are common terms which can be included in the legal category of cultural property as defined in Section 7.10. of the Act LXIV of 2001 on the Protection of Cultural Heritage (hereinafter: Act LXIV of 2001).
[61] Mamarbachi Raya, Day Marc, Favato Giampiero: Art as an Alternative Investment Asset. 2008, 2. p.
[62] Cziráki Gábor: Műtárgy jellegű könyvgyűjtemény lehetséges szerepe egy öngondoskodási célú, passzívan kezelt speciális portfolióban. Gazdaság és Társadalom, 2018/2/60. 59-82. p. (doi: 10.21637/ GT.2018.02.04)
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[65] For example, Binance, the world's largest crypto exchange by trading volume, belongs to the latter CEX exchange type.
[66] Robert Frank: Beeple NFT becomes most expensive ever sold at auction after fetching over $60 million. Available: https://www.cnbc.com/2021/03/11/most-expensive-nft-ever-sold-auctions-for-over-60-million.html (2021. 12. 11.)
[67] Erdős Péter: Gyűjtemények, mint alternatív befektetési lehetőségek. Tézisfüzet. Budapesti Műszaki és Gazdaságtudományi Egyetem Gazdaság- és Társadalomtudományi Kar Gazdálkodás- és Szervezéstudományi Doktori Iskola, 2010, 3-4. p.
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[70] Resale within three years could potentially mean smaller gains or even losses.
[71] Art & Finance Report 2019 - 6th edition. 142143. p.
[72] Martos Gábor: Műkereskedelem. Egy cápa ára [Art trade. The price of a shark.]. Magyar Művészeti Akadémia, Typotex, 2013, 85. p.
[73] The metaverse is one of the concepts of the future internet. It is based on decentralised crypto solutions and consists of 3D virtual spaces that form a virtual universe.
[74] In play-to-earn games, players can earn rewards and even cash/cryptocurrency during gameplay.
Lábjegyzetek:
[1] The Author is doctoral candidate, Doctoral School of the Faculty of Law, University of Pécs.
Visszaugrás
