November 8, 2023
Partner Matthew Makover and associate Noni Brown recently contributed to a report and video produced by client The Chamber of Digital Commerce. The report, From Pixels to Policy – The NFT Impact Report, and associated video explore how non-fungible tokens (NFTs) work, their wide range of potential uses across various industries including digital art, financial services, music, gaming and more, and how they have the potential to bring efficiency, opportunity and increased security to the industries in which they operate.
Topics addressed in the report include:
- How NFTs work
- How NFTs differ from cryptocurrencies
- Benefits of NFT technology
- Use cases of NFTs
- NFT-related risks and challenges, including illicit finance, fraud, privacy, royalties and buyer/owner rights
In the video, Matt and Noni elaborate on these points, explaining how NFTs function, and how they are already impacting and advancing a range of industries.
“NFTs are really a transformative way to authenticate and verify ownership through a public network. They’re a representation of blockchain technology…a revolutionary technology that is a public ledger, but that isn’t necessarily governed by traditional authorities. It is really governed by the community of users,” explained Matt.
Noni discussed the difference between NFTs and cryptocurrencies, explaining that NFTs are a form of digital certificate, while cryptocurrencies are a form of digital currency. “In thinking of strategies and regulations related to these two types of technologies, it is going to be really important that that distinction is made clear. Because this is a new, emerging technology, it is going to be even more imperative for industries to come together and actually develop standardized best practices and models so that we can see some consensus,” she said.
Matt also explained the many uses for NFTs across various industries. “NFTs are more than just artwork and collectibles. They can help institutions that have very old systems for record keeping or for verifying transactions. NFTs allow for that [process] to be much more efficient, cheaper, easier, lower barrier to entry, less red tape. All of that is allowed by this new technology,” he noted.
The Chamber of Digital Commerce is a trade group focused on U.S. blockchain and crypto policy.
Read: From Pixels to Policy – The NFT Impact Report
Watch the video here.
